New Jersey Set to Finalize Regulations for Temporary Workers' Bill of Rights

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The State of New Jersey is poised to finalize regulations for the Temporary Workers' Bill of Rights (TWBR), a law designed to enhance protections and ensure fair compensation for temporary workers. The New Jersey Department of Labor and Workforce Development (NJDOL) is expected to publish the final regulations on September 16, 2024, following a thorough review of public comments.

The TWBR, which took effect in August 2023, mandates that temporary workers receive pay and benefits on par with permanent employees performing similar work for the same employer. This includes equal pay and benefits or their cash equivalent. The law applies to all temporary help service firms operating within New Jersey, even if the workers are placed with third-party clients outside the state, provided the workers' primary residences are in New Jersey.

In August 2024, the NJDOL responded to over eighty public comments on the proposed regulations. The NJDOL has opted to move forward with the regulations "with non-substantial changes," indicating no further public commentary is required before finalization. These regulations clarify several critical aspects of the TWBR, including how benefits are calculated, the scope of applicable employees, and the applicability of the law to workers placed out of state.

The regulations emphasize that the TWBR applies to all temporary workers assigned to third-party clients as of August 5, 2023. Temporary help service firms are required to conduct a pay equity calculation for these workers and adjust their compensation accordingly. The NJDOL also clarified that there are no exemptions from the TWBR for unionized workforces and that the law applies uniformly across the board.

One significant clarification in the final regulations is regarding the identification of comparator employees. The NJDOL confirmed that when determining if temporary workers are being compensated fairly, employers must consider all comparable employees across all locations and shifts, not just those in the same geographical area or working the same shifts.

With the finalization of these regulations, temporary help service firms and the businesses that utilize their services are advised to carefully review and adjust their practices to ensure compliance with the new rules. The NJDOL is expected to enforce these regulations rigorously, and non-compliance could result in significant legal and financial penalties.