New Jersey Courts Uphold the Temporary Workers’ Bill of Rights: A Milestone for Worker Protections

The implementation of the Temporary Workers’ Bill of Rights (TWBOR) in New Jersey marked a significant advancement in the protection of temporary workers. Enacted in February 2023, this vital legislation arose from the Legislature's findings that over 100,000 temporary workers employed by staffing agencies were earning significantly less than their direct counterparts performing the same jobs. Additionally, temporary workers often faced abuse and exploitation while lacking the full protections afforded by existing New Jersey employment laws. The TWBOR directly addresses these pressing concerns. The law took effect on August 5, 2023, following a decisive ruling from a federal court that rejected a challenge brought by several staffing agency trade organizations. In July 2024, the Third Circuit Court of Appeals upheld this ruling, affirming the lower court's decision and validating the need for enhanced protections for temporary workers. A month later, this past August, the district court denied another motion from the plaintiffs seeking an injunction against the TWBOR, leaving open the possibility of future appeals.

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The TWBOR introduced several critical legal protections for temporary workers, primarily targeting staffing agencies that employ these workers and assign them to client companies. Under this law, staffing agencies must pay temporary workers at least the same wage as their client companies pay their employees for similar work and provide equal benefits. Additionally, the law prohibits retaliation against workers who assert their rights under the TWBOR, ensuring that employees can speak up without fear of repercussions. Moreover, staffing agencies are required to provide written notice for every new assignment, detailing essential information such as job responsibilities, assignment duration, and wage rates.

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Despite the clear need for this law, a coalition of trade associations representing New Jersey staffing agencies sought to block its implementation, by filing a lawsuit in May 2023. They requested a preliminary injunction, which a federal judge denied, determining that the plaintiffs failed to demonstrate a likelihood of success on the merits of their claims. The court rejected their arguments, including a claim that the TWBOR discriminated against out-of-state businesses and that the law was unconstitutionally vague. The judge emphasized that protecting temporary workers is a legitimate state interest and that the TWBOR is reasonably aligned with this objective. The plaintiffs appealed the decision to the Third Circuit, which affirmed the district court’s ruling in July 2024, supporting the findings regarding the plaintiffs' likelihood of success and addressing the Dormant Commerce Clause. The appeals court did not remand the case back to the lower court, leading the plaintiffs to consider an appeal to the U.S. Supreme Court as their next step. While this appeal was pending, the plaintiffs filed an amended complaint in the district court, introducing a new claim that the federal Employee Retirement Income Security Act (ERISA) preempted the TWBOR’s “equal benefits” requirement. However, the district court denied their motion for a preliminary injunction on these grounds in August 2024, citing an “inexcusable delay” in raising the preemption claim.

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The courts' steadfast support for the TWBOR signals a powerful commitment to upholding the rights of temporary workers in New Jersey. By rejecting attempts to halt its implementation, the judiciary has reinforced the importance of equitable treatment in the workplace. As the TWBOR remains in effect, it empowers temporary workers with crucial protections, fosters accountability among staffing agencies, and sets a precedent for worker rights across the nation. This bill represents a landmark achievement in the fight for employee rights in New Jersey. As we look ahead, it is crucial to remain vigilant and supportive of this legislation to ensure that all workers receive the fair treatment they deserve.

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