New protections for NJ’s temp workers take effect next week after judge rejects legal challenge

A federal judge said on Wednesday afternoon that New Jersey’s landmark law regulating the temporary worker industry can be fully implemented — dealing a major blow to business groups and staffing agencies that wanted to stop additional rules from taking effect next week.

The law, which was signed by Gov. Phil Murphy in February, offers protections to thousands of temp workers who largely labor in warehouses in often unsafe working conditions and sometimes receive below-minimum-wage pay after deductions from their paychecks for meals and travel. The ruling clears the way for the most substantial parts of the law, which could potentially boost pay for the low-wage workers, to kick in on Aug. 5.

“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 and a temp worker for 14 years. “The path to respect and dignity for temp workers has been cleared, and we’re excited for temp workers across the state to stand up for the rights we’ve won.”

The New Jersey Staffing Alliance and the American Staffing Association represent staffing agencies in the state, and filed the suit in May. Casey Abline, a spokesperson for the New Jersey Staffing Alliance said the groups were "assessing the implications of the court’s ruling and determining what the next steps should be in their ongoing efforts to mitigate the effects of this onerous law."

A spokesperson for the New Jersey Business and Industry Association, another plaintiff, said in an email that they were disappointed by the decision.

The lawsuit called the new measure unconstitutional and sought a temporary restraining order to stop it. But U.S. District Judge Christine O’Hearn declined to issue a temporary restraining order, repeatedly writing that the plaintiffs were “unlikely to succeed on the merits of their claims.” The suit alleged the law was unconstitutionally vague, and that it violated the equal protection, due process and dormant commerce clauses of the U.S. Constitution.

Steven Harz, the lead attorney representing the staffing agencies, previously told Gothamist that staffing agencies agreed with the intention to improve the temp worker industry but said the law as written would hurt businesses and workers.

“We feel it is so heinous and so many provisions of it are unlawful and vague that it's going to put a number of companies, staffing companies, out of business,” Harz said in May.

Parts of the law already took effect earlier this year, requiring staffing agencies tell temp workers — both in English and in whatever language the worker speaks — where they will be working, how much they will get paid, the length of the assignment, whether they need any special clothing and whether they will be given protective gear or training by the third-party client. Agencies can face fines of $500 to $1,000 for each violation of the law.

Next week, staffing agencies will need to pay temp workers the same average pay and equivalent benefits to those received by full-time permanent employees at third-party sites. Staffing agencies will also be required to pay temp workers at least for four hours worth of work, even when workers are sent to third-party sites and clients decide not to utilize the workers.

To clarify the law's provisions, the Department of Labor last week published proposed regulations to implement the law and detailed instructions to help staffing agencies calculate appropriate hourly benefits and wages.

Staffing agencies can comment on the proposed regulations before they are finalized.

This story has been updated to include a statement from a New Jersey Staffing Alliance spokesperson.