A landmark law giving temporary workers in New Jersey sweeping new protections and rights is set to fully take effect next week after a federal judge rejected a request by business groups and staffing agencies for an injunction to stop the state from implementing it.
Wednesday’s ruling from Judge Christine O’Hearn is the latest development in a lawsuit the New Jersey Business and Industry Association, the New Jersey Staffing Alliance, and the American Staffing Association filed in May seeking to overturn the “Temp Worker Bill of Rights” on the grounds that it’s unconstitutional.
Gov. Phil Murphy signed the law in February after years of lobbying from temp workers and advocates, who say it’s the first of its kind in the U.S. The law benefits more than 127,000 temp workers employed by at least 100 agencies in the Garden State, primarily in the warehouse and logistics sector.
The first provisions took effect in May. O’Hearn on Wednesday shot down a request by the business groups for a temporary restraining order that would have blocked the law from being further implemented as the lawsuit proceeds.
That clears the way for the law’s final provisions — including key changes related to wages and benefits — to take effect as planned 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,” Adriana Alvarez, a member of advocacy group Make the Road NJ, said in a statement after Wednesday’s decision.
“But this year we fought for and passed the Temporary Workers’ Bill of Rights, and now a judge has affirmed that the law has a strong foundation and is ready to be implemented. The path to respect and dignity for temp workers has been cleared, and we’re excited for temp workers across our state to stand up for the rights we’ve won.”
The parts of the legislation (S511) that took effect in May require agencies to give temp workers basic information in English and their native language about where they will be working, the pay rate, their schedule, what kind of work they will be doing, and how much sick time they can get.
The provisions that take effect next week eliminate many of the fees temp agencies deduct from workers’ paychecks, including mandatory fees for the vans that take temps to their worksites each day.
Plus, temp workers will be guaranteed to earn at least minimum wage after fees are deducted from their checks by their temp agencies and agencies would be required to pay those workers the same as their full-time counterparts.
Supporters say this law is especially critical because many temp workers are people of color or first-generation Americans who work hard to support themselves and their families.
But business groups and temp agencies lobbied heavily against the legislation. They argued the new regulations on the industry will drive up costs, threaten to put agencies out of business, force companies to move out of state, and ultimately hurt workers. They also say there are already laws in the state to punish bad actors, but state officials often didn’t use them.
Their lawsuit argues the law is unconstitutional, vague, “unreasonably exercises police power,” will “lead to insurmountable problems resulting in paralysis within the temporary staffing industry,” and does “not ensure a higher wage” for these workers.
O’Hearn, however, wrote in her ruling Wednesday that the groups were “unlikely to succeed on the merits of their claims.”
Her decision does not end the lawsuit. It simply allows the law to take effect as the suit proceeds. It’s unclear when O’Hearn will issue a final ruling.
The NJBIA is “disappointed” by Wednesday’s decision, spokesman Bob Considine said.
Considine added that the group does not “oppose its intent of providing more transparency and consistency for temporary laborers” but that the provision “most damaging to the industry” is “the mandate that temporary employees receive the same average wages and benefits, or the cash equivalent of the benefits, received by client employees performing similar work.”
State Sen. Joe Cryan, D-Union, a main sponsor of the law, said Wednesday the lawsuit is a “desperate attempt to stop a law that will bring standards to a lawless industry and hold employers who abuse and exploit their workers to account.”
State Attorney General Matthew Platkin said the law “promises temporary workers in our state the same rights and dignity as everyone else, which is why we’ve been vigorously defending it for months in federal court.”
“We’re grateful that the district court correctly upheld the law,” Platkin said.
O’Hearn also noted the state Department of Labor last week proposed regulations to implement the law and instructions to help staffing agencies calculate benefits and wages. Agencies are allowed to comment on the regulations before they take effect.
“Whatever questions plaintiffs still might have, now is their chance to get the answers they need,” the judge wrote.
Activists say the law was inspired in part by an NJ Advance Media investigation published on NJ.com and in The Star-Ledger and affiliated newspapers in 2016.
The “Invisible Workforce” series, published in partnership with Reveal from The Center for Investigative Reporting in both English and Spanish, found some low-paid temp workers were being exploited and mistreated by temp agencies that sent them to work in local warehouses and factories.
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Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him at @johnsb01.
Kelly Heyboer may be reached at kheyboer@njadvancemedia.com.