Appeals court rules in favor of New Jersey temp worker law

The law, known as the temp workers bill of rights, offers protections to the state’s estimated 127,000 temporary workers who are staffed primarily in warehouses and factories (Getty Images)

In a blow to New Jersey staffing agencies, a federal appeals court declined to halt enforcement of a new state law that requires businesses to pay temporary workers the same wages and benefits as full-time employees who do similar work.

The agencies had argued that the law is unconstitutionally vague, disadvantages out-of-state employers, and makes New Jersey businesses less competitive, but the Third Circuit Court of Appeals dismissed those arguments Wednesday, affirming a lower-court decision that sided with the state over the agencies.

The panel noted that the lower-court ruling argued the plaintiffs would likely not succeed on the merits of their case.

“The legislative winners here are New Jersey’s temporary workers, and the losers are New Jersey staffing firms,” U.S. District Court Judge Thomas Hardiman wrote in the 15-page decision .

The law, known as the temp workers bill of rights, offers protections to the state’s estimated 127,000 temporary workers who are staffed primarily in warehouses and factories. The law has been fully in effect since last August.

The law requires agencies to provide workers with basic information in their native language about their employment location, schedule, pay rate, sick time benefits, and more. The law also guarantees these workers will earn at least minimum wage after fees are deducted, and agencies are required to pay temp workers the same as their full-time counterparts. It also implemented new record-keeping requirements.

Supporters of the law celebrated the ruling. Sara Cullinane, executive director of immigrant advocacy organization Make the Road New Jersey, helped fight for the law’s passage for years.

“Despite industry groups’ desperate attempts, the Third Circuit’s decision today once again affirms that the Temp Workers Bill of Rights is legally sound. The Bill of Rights provides vital protections to a long-exploited workforce, and brings justice and fairness to an industry that has escaped accountability for too many years. No law-abiding business should fear this law,” Cullinane said.

Bill sponsor Sen. Joe Cryan (D-Union) said on social media that plaintiffs in the case can “maybe now just follow the law.” Dozens of workers have filed complaints with the state Department of Labor alleging violations of the law.

Business groups and temp staffing agencies fought heavily against the new regulations, arguing they would threaten the industry. Agencies would be driven out of business and companies would move out of New Jersey, ultimately hurting the state’s labor force, they told lawmakers.

The New Jersey Staffing Association, American Staffing Association, and New Jersey Business and Industry Association sued the state shortly after some provisions went into effect.

Elissa Frank, vice president of government affairs with the New Jersey Business and Industry Association, said it is “disappointed by the ruling,” adding that there is a separate federal lawsuit still pending that alleges the law’s equal benefits mandate violate a federal employee income law. The staffing agencies did not respond to requests for comment.

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