Gov. Murphy Vetoes 'Temp Worker Bill Of Rights' In New Jersey

NEW JERSEY — Gov. Phil Murphy conditionally vetoed a bill on Thursday that would have created a “bill of rights” for temporary workers in New Jersey. However, the governor said he is open to a revised version of the legislation – and advocates are promising it’s on the way.

The bill, A-1474/S-511, got final approval from the state Legislature in August. It will now head back to its sponsors for potential revisions. Read More: Extra Vote Doesn't Stop 'Temp Worker Bill of Rights' In NJ Legislature

Supporters said the bill would have provided key protections to temp workers across the state, including "ensuring equal compensation, providing more transparency, eliminating excessive fees and instituting anti-retaliation measures."

A recent report compiled by Make the Road NJ and New Labor highlights stories of alleged abuse, wage theft, age and gender discrimination, and unsafe work conditions that hundreds of thousands of predominantly Black and Latinx temporary workers faced while working in essential, front-line jobs during the pandemic across New Jersey. Read More: 'Unfair And Humiliating': NJ Temp Workers Deserve More, Activists Say

But some critics argued that the bill would have resulted in “burdensome requirements” – and possibly lawsuits – for temporary staffing agencies and the third-party companies that use them.

There are more than 127,000 people in New Jersey employed by temporary staffing agencies, according to the Bureau of Labor Statistics.

GOVERNOR: HERE’S WHY I VETOED THE BILL

According to Murphy, the bill’s supporters are barking up the right tree, but a series of technical revisions are needed to “bolster its administration and effectiveness.” Read his full statement on the conditional veto here.

“I applaud the bill sponsors’ efforts to improve the working conditions of our state’s temporary laborers,” the governor said. “The protections contained in the bill will promote greater fairness in the industry, help address discriminatory labor practices, and promote racial and gender pay equity. I thus wholeheartedly support the overarching objectives of this bill and agree that we must act to better protect the temporary workers who are critical to our state’s economy.”

But that doesn’t mean the version that landed on his desk was ready to sign, he added.

According to Murphy, here are some things that need to change before he’ll put pen to paper:

REGISTRATION - “Rather than establish a duplicative registration scheme in the DOLWD, I propose amending the bill so that the enhanced registration requirements established by the bill are implemented through the existing registration system currently maintained in the Division of Consumer Affairs in the Department of Law and Public Safety (the “Division”). This recommendation recognizes the resource investment, both in terms of technological infrastructure and retention of trained staff that the State has already made in developing and maintaining in the Division an online registration system for temporary help service firms. Rather than expend resources to create a second such system in the DOLWD, which would impose largely redundant registration requirements on temporary help service firms forced to register with two different state agencies, the better approach is to supplement the existing system to accommodate the additional information and disclosures that registrants must provide under the bill.”

$1 MILLION APPROPRIATION - “The bill calls upon the DOLWD to play a critical role in overseeing and enforcing the substantive protections being established in order to safeguard temporary laborers from unfair treatment, exploitation, and abuse. Accordingly, I am recommending an appropriation of $1 million to the DOLWD to ensure robust enforcement of the bill’s protections.”

NARROW IT DOWN - “My suggested amendments also hone the definition of temporary laborers to more clearly delineate the occupations covered by the bill, tailoring the application of the bill to those positions in the workforce at greatest risk of exploitation. This will ease the compliance burdens placed on the temporary help service industry, while ensuring that laborers in certain occupations subject to more extreme hardships receive due protection and consideration in enforcement. I also recommend amending the bill to authorize payments for temporary laborers via bi-weekly paychecks only, rather than allowing selection of pay periods of other durations. This revision recognizes that many businesses have payroll systems that are likely ill-equipped to comply with multiple pay periods that vary by employee, and also limits the potential for the diminution of temporary laborers’ earned wages through expenses such as check cashing fees. Finally, I am recommending amendments to delay the bill’s effective date by an additional 90 days to give DOLWD and DCA sufficient time to build out their infrastructure, retain and train additional staff, and make other needed adjustments so that they are fully ready and able to effectively implement the provisions of the bill when it takes effect.”

“Along with several technical amendments, these recommended substantive changes will advance the bill’s primary objectives without unduly hindering the availability of critically important temporary help service workers to businesses that need and benefit greatly from this pool of labor,” Murphy concluded.

CRITICS: ‘BURDENSOME REQUIREMENTS, POSSIBLE LAWSUITS’

Advocates have insisted the bill would be good for businesses in addition to workers, because it would allow law-abiding agencies to “avoid a race to the bottom with unscrupulous employers.” But according to the New Jersey Business & Industry Association (NJBIA), if the proposed law got the governor’s signature, it would have been a huge thorn in the side of temp agencies and the clients they service.

NJBIA Vice President of Government Affairs Alexis Bailey said the governor’s conditional veto on Thursday is a breath of relief, but added that the group’s basic objections to the bill remain.

According to Bailey:

“While we are pleased that this overreaching bill was not signed into law today, the burdensome provisions that strike temp agencies and employers who use them unfortunately remain in the governor’s [conditional veto]. The most problematic provision of the bill which remains is a requirement that temporary workers receive the same compensation and benefits as their equivalent employee counterparts. We remain steadfast in our position that that condition is unworkable. Temp agencies contract with multiple businesses that all have various benefits packages. These packages can encompass everything from 401k matches and health insurance to vacation days and life insurance policies. It will be a logistical impossibility for temp agencies to administer these extensive benefits that vary so widely across businesses to thousands of temporary workers. Further, this extreme benefit provision is not included in any other state that has passed similar legislation. The conditional veto also does not disrupt the path to litigation for third-party businesses that use workers from a properly registered temporary help service firm – even if the firm unknowingly or knowingly commits violations that are out of the business’s control.”

“As this bill only narrowly passed the Senate and the Assembly before reaching the governor’s desk, we look forward to continuing to work with the sponsor and the lawmakers to bring better fairness and balance to New Jersey’s business community,” Bailey said.

The NJBIA wasn't alone in its criticism.

The New Jersey Staffing Alliance (NJSA) also released a statement about the governor's conditional veto, saying that its members were "very disappointed" that more substantive changes weren't made.

The NJSA said it is asking legislators to use the time following this week's conditional veto to push for "critical substantive changes" so the staffing industry can continue to function in the Garden State. These include:

• "The bill’s requirement for temp worker pay and benefits to match that of regular employees will be problematic for employers as pay is proprietary competitive information. Additionally, the bill fails to consider employers rewarding worker loyalty, training, knowledge of the company etc. that are factored into pay or that some employee benefits provided by third parties, such as health insurance, can’t be extended to temp workers."
• "The bill prohibits agencies from charging temporary workers for transportation the agency provides to or from work. Temp agencies that supply transportation for workers who don’t have their own should not have to bear the cost of it, as in almost every industry most employees are responsible for their own transportation."

In its current form, the bill could tip some staffing agencies, particularly smaller ones, to shut their doors, which could cause "drastic reductions" in the workforce, the NJSA said.

"We are looking for fairness in the regulations that are presented so we can continue to work together for a reasonable compromise that will benefit temp workers, employers and the staffing agencies that bring them together," the group said.

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ADVOCATES: ‘TEMP WORKERS NEED MORE PROTECTIONS’

Workers and advocates with Make the Road New Jersey and New Labor – two groups that have been fighting for the bill – also issued statements in the wake of Thursday’s announcement, vowing to keep the pressure on state lawmakers.

"The passage of this bill passed thanks to the advocacy of hundreds of temp workers, community members and advocates who have been pushing for the passage of the Temp Workers’ Bill of Rights for more than 10 years," the groups said. "The bill will ensure that workers employed by temporary or staffing agencies are paid equally as permanent workers when doing the same jobs."

“Governor Murphy's conditional veto makes important technical changes to streamline enforcement and clarify protections for temp workers,” said Nidia Rodriguez, a temp worker and member of Make the Road NJ.

“Temp workers have been subject to wage theft, abuse and exploitation for far too long,” Rodriguez said. “During the pandemic, we risked our lives to do essential work without adequate protections. Four temp workers from one of New Jersey’s largest temp agencies have died in the months since the bill last passed. We call on the legislature to immediately bring S511/A1474 for a vote. We cannot wait for workers’ safety and livelihoods to be protected.”

Reynalda Cruz, a New Labor organizer and former temp worker, said the temp worker bill of rights has been a long time coming in New Jersey.

“Temp workers need more protections,” Cruz said. “This will make the bill more clear for everyone – for temp workers, for businesses and for government agencies – so the time is now to make it law.”

• See related article: Murphy Vetoes NJ Foreclosure Reform Bill, But Leaves Door Open

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