NJ Temp Worker ‘Bill Of Rights’ Survives Court Challenge

NEW JERSEY — A state law that gives some powerful new rights to “temp workers” in New Jersey has survived an attempt to derail it in the courts.

On Wednesday, a federal judge denied an injunction sought by the New Jersey Staffing Alliance (NJSA) and the New Jersey Business and Industry Association (NJBIA) that would have put the brakes on the Temporary Workers’ Bill of Rights.

The legislation beefs up job protections for an estimated 127,000 temporary workers in the state, many of whom work in the rapidly growing warehouse industry. Gov. Phil Murphy signed it into law earlier this year after conditionally vetoing a previous version.

Parts of the Temp Workers’ Bill of Rights went into effect in May 2023, with the remainder due to kick in Aug. 5. Read More: New Rights Coming For NJ Temp Workers (See The List)

The legislation saw harsh criticism from business groups and temp agencies, who argued that it will be a huge drain on employers – potentially impacting the number of available jobs – and could force businesses to move to other states due to the increased cost.

However, labor advocates and workers have protested that more regulations are desperately needed in an industry that is rife with low pay, discrimination, wage violations, a lack of health benefits, uncertain schedules and serious safety risks. Read More: NJ Temp Workers Say Tragic Car Crash Shows Urgent Need For Change

In her 29-page opinion, Judge Christine O’Hearn of the United States District Court of the District of New Jersey asserted that the NJSA and the NJBIA “failed to show a likelihood of success on the merits of any of their claims.”

BUSINESS GROUPS: 'WE SOUGHT COMPROMISE THAT NEVER CAME'

Bob Considine, a spokesperson with the NJBIA, told Patch that the group is “disappointed” by the ruling.

“While we did oppose the Temporary Workers Bill of Rights, we did not oppose its intent of providing more transparency and consistency for temporary laborers,” he said. “We basically sought compromise on certain provisions of the bill that never came.”

Considine said the harshest part of the new law is the mandate that temporary employees receive the same average wages and benefits – or the cash equivalent – as client employees who perform similar work.

The industry has multiple problems with this approach, he said:

“First, temporary agencies contract with multiple businesses that offer different benefits packages, which can encompass everything from 401K matches and health insurance to vacation days and life insurance policies. Calculating and providing payment for the average cost of these benefits packages would be logistically unworkable. Second, and more impactfully, this pay provision will easily result in a temporary worker making more than a permanent employee, creating unfairness by usurping pay scales for staff that are based on seniority and experience.”

“Additionally, this provision is all but impossible to implement,” Considine continued. “The state will need to make a myriad of arbitrary judgments as to which jobs or occupations in society are of comparable economic value, and then mandate that those jobs be compensated at the same rate regardless of marketplace value.”

The lawsuit sought to create some balance in the new regulations, he said.

“We tried through the Legislature when the bill went too far, and sought that balance through the courts, so we don’t critically harm an industry,” Considine said.

A spokesperson for the NJSA said the associations are “assessing the implications of the court’s ruling and determining what their next steps should be in their ongoing efforts to mitigate the effects of this onerous law.”

ADVOCATES: 'THE PATH TO RESPECT AND DIGNITY'

Several workers’ rights advocates cheered the court’s decision to deny the injunction.

“I’ve worked for many agencies over many years, and nothing in my experience would have led me to believe that justice was possible for us,” said Adriana Alvarez, a member of Make the Road New Jersey.

“But this year we fought for and passed the Temporary Workers’ Bill of Rights, and now a judge has affirmed that the law has a strong foundation and is ready to be implemented,” Alvarez said. “The path to respect and dignity for temp workers has been cleared, and we’re excited for temp workers across our state to stand up for the rights we’ve won.”

“I’m gratified that the court decided to stand with workers today,” agreed Sen. Joseph Cryan, who sponsored the bill along with Assemblywoman Yvette Lopez.

“The NJBIA and NJ Staffing Alliance’s lawsuit is a desperate attempt to stop a law that will bring standards to a lawless industry and hold employers who abuse and exploit their workers to account,” Cryan said.

“New Jersey should be proud to be the first state in the nation to pass a law like this,” the senator added.

Nicole Rodriguez, president of New Jersey Policy Perspective, said the court ruling reiterates what advocates knew from the beginning: temp workers have been exploited for far too long.

“Instead of fighting this in court, the staffing industry should focus their time and attention on following the law and treating their workers with the respect they deserve,” Rodriguez said. “These protections are not only common sense but the law of the land, and the temp industry needs to accept that.”

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