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USA: New Jersey Governor Phil Murphy (D) signed into law the “Temporary Worker Bill of Rights

  • On 6 February 2023, New Jersey Governor signed into law Assembly Bill No. A1474 / S511,1, known as the "Temporary Worker Bill of Rights," concerns the employment and protection of temporary labourers.
  • It aims to eliminate pay disparities and increase oversight of temporary staffing agencies.

The Bill sets out significant obligations for staffing firms and third-party employers, imposing new recordkeeping requirements on staffing firms and creating steep penalties for retaliation. 

To whom does the law apply? 

 

The law applies to non-exempt workers assigned by a temporary staffing agency to perform work in the following occupational categories (as defined by the U.S. Bureau of Labor Statistics): protective service workers, food preparation and serving related occupations, building and grounds cleaning and maintenance occupations, personal care and service occupations, construction labourers, helpers, construction trades, installation, maintenance, and repair works, production occupations, transportation, and material moving occupations. 

Who is a temporary worker?

The Bill of Rights defines a 'temporary worker' as someone who contracts for employment in a designated classification position (see above) with a temporary help company.

What are the main provisions?

-      Notice requirements: Temporary employment agencies must provide written notice to temporary workers at the time of each new assignment, containing detailed information on the employment agency, the name and nature of the work to be performed, the remuneration offered, the assigned worksite and the duration of the assignment and many others. They also must be informed in advance of any change in the schedule, shift, or location of a multi-day assignment. 

-      No retaliation: The Bill prohibits retaliating against temporary workers who exercise their rights under the law, including complaining to the employment agency or client company and initiating or participating in any proceedings related to the Temporary Workers' Bill of Rights.

-      Changes to Rate of Pay: staffing firms have to pay temporary labourers assigned to work for a third-party client the same average rate of pay and equivalent benefits as a permanent employee performing the same or similar work of the third-party client. At the request of a temporary worker, staffing firms must hold daily wages and make biweekly paychecks to avoid unnecessary check-cashing fees that eat away at earnings.   

-      Certification with the Division of Consumer Affairs: all temporary employment agencies must be certified by the Division of Consumer Affairs, which will require proof of unemployment insurance and workers' compensation.

-      Private right of action: Temporary workers, temporary employment agencies, and client employers will have the right to sue under the Act within six years of any violation.

When does it enter into force?

The notice and anti-retaliation provisions will enter into force on 7 May 2023, while the other provisions on 5 August 2023.

What should companies do?

Temporary employment agencies and companies that contract with them should review their policies and contracts and check their pay practices, especially regarding pay slips and frequency of payments, to comply with the new provisions.