New Jersey Enacts Bill of Rights for Temporary Workers

New Jersey has enacted legislation (Assembly Bill 1474), the "New Jersey Temp Worker Bill of Rights," (the “Bill”) which increases the rights of certain temporary workers. The law is set to take effect on August 5, 2023, with a few provisions that begin on May 7, 2023.

The Details

Assembly Bill 1474 provides significant additional rights to certain workers who are placed in temporary roles at third-party client employers by temporary help service firms.

Under the Bill, staffing firms must pay temporary laborers assigned to work for a third-party client the same average rate of pay and equivalent benefits as a permanent employee that performs the same or similar work of the third-party client.

The Bill also prohibits staffing firms or a contract or agent of such, from charging a fee to a temporary laborer to transport them to or from the designated work site.

Note: Temporary employment is a duration that is clearly stated to all parties at the time of referral and is either fixed as some definite agreed period of time or by the occurrence of some specified event.

Covered Workers

The Bill provides additional rights to a temporary worker of a New Jersey-based firm that contracts with a temporary help services firm to be assigned to perform work in the following occupations:

See the text of the law for exceptions.

Note: Staffing firms located, operating, or transacting business within New Jersey may not make any designated classification placements unless they are certified by the Director of the Division of Consumer Affairs.

Employer Pay Statement Requirements

Each time a temporary laborer is paid, the firm must provide the worker a detailed itemized statement (on a paycheck stub or on a form approved by the commissioner) that includes:

• The name, address and telephone number of each third-party client where they worked. Note: If this information is provided on the worker’s paycheck stub, a code for each third-party client may be used if the temporary worker has access to the required information for all third-party clients;
• The number of hours worked at each third-party client each day during the pay period. Note: If the temporary laborer is assigned to work at the same worksite of the same third-party client for multiple days in the same work week, the firm may record a summary of hours worked at that third-party client's worksite if the first and last day of that work week are identified as well;
• The rate of payment for each hour worked, including any premium rate or bonus. Overtime pay must be paid in accordance with the law;
• The total pay period earnings;
• The amount and purpose of each deduction made by the firm, including the worker’s food, equipment, and withheld: income tax, Social Security deductions, contributions to the State unemployment compensation and disability benefits trust funds and every other deduction.
• The current maximum amount of a placement fee which the temporary help service firm may charge to a third-party client to directly hire the temporary laborer 
• Any additional information required by the commissioner.

The temporary service firm must also disclose to each affected temporary laborer on a wage statement and notice form “the maximum amount of a fee that shall be charged to a third party client by the temporary help service firm, and the total amount of actual charges to the third party client for the worker during each pay period compared to the total compensation cost for the temporary laborer, including costs of any benefits provided.”

Note: Employers should refer to the law for the current maximum amount of a placement fee which a firm may charge a third-party client to directly hire the temporary worker.

Annual Earnings Summary

The firm also must provide:

·      Each worker an annual earnings summary by February 1 of each year.

·      Notice to workers of the availability of the annual earnings summary by:

o   Including a notice at the time of wage payment; or

o   Posting a notice in a conspicuous place of public reception.

 Notice Requirements

Under the law, firms are also required to provide the following notice:

Dispatch Notice

When a firm agrees to send a worker on an assignment, they must provide the worker, at the time of dispatch, a written statement approved by the commissioner that includes specific, itemized information regarding the terms and conditions of the engagement. It must also state whether the assignment can be accepted at the firm’s office or remotely by telephone, text, email, or other electronic exchange.

Note: The firm must provide the notice on the first day of the assignment and each day a term of employment changes.

Multi-day Assignments

For multi-day assignments, a firm must provide a worker with the schedule, length of the assignment (if known), and the amount of sick leave to which temporary workers are entitled under the law. The firm must also provide the terms of use for sick leave.

In the event of a change in a schedule, shift, or location of a multi-day assignment, the firm must provide written notice of the change not less than 48 hours in advance to the worker (when possible).

When a worker is assigned to the same assignment for more than one day, the firm must provide the employment notice on the first day of the assignment and on each day that a term found on the employment notice changes.

Note: If notice is not provided, the firm should be prepared to demonstrate that it was not possible to provide the required notice.

Seeking Work

If the worker is not placed with a third-party client or contracted to work for that day, the firm must, upon request, provide a worker with a confirmation that:

• Is signed by an employee of the firm;
• States the temporary worker sought work; and
• Includes the firm's name, the worker's name and address, and the date and the time the worker receives the confirmation.

Additional Protections

Under the law, firms:

• Are prohibited from sending a worker to a placement where a strike, lockout, or other labor dispute exists without providing, at the time of dispatch, a written statement that informs the worker of the labor dispute and the worker's right to refuse the assignment.
• Must make translation services from their company or a vendor available to temporary workers. The translators must be able to effectively communicate information in Spanish (or any other language that is generally understood in the locale of the firm), as required under the law.

Recordkeeping

The law includes extensive recordkeeping requirements for employers, such as when firms send one or more individuals as temporary workers. The firm must maintain all records for a period of six years.

See the text of the law for detailed recordkeeping requirements.

Nonretaliation

Firms are prohibited from retaliating against workers that exercise their rights under the law.

Note: Firing or disciplining a worker within 90 days of a worker exercising their rights under the law will increase the assumption that retaliation has occurred.

Next Steps

New Jersey staffing firms should:

• Stay apprised of the new protections granted under Assembly Bill 1474.
• Be on the lookout for a multilingual outreach program from the state to inform workers of their rights.
• Consult legal counsel with inquiries on the applications of the law.

Please contact your dedicated service professional with any questions.