Lawsuit argues New Jersey legislation might destroy staffing trade in that state

Might 10, 2023

The New Jersey Staffing Alliance filed a lawsuit Might 5 in opposition to the state of New Jersey in federal court docket. It asks {that a} piece of laws targeted on the staffing trade and handed earlier this yr be declared unconstitutional.

It argues the laws represents and existential risk to New Jersey’s staffing trade.

“The period of time and labor that will likely be spent with regard to compliance with this laws will most likely be price prohibitive and in the end destroy the momentary staffing trade in New Jersey,” in response to the lawsuit.

Gov. Phil Murphy signed the invoice, the “Short-term Staff’ Invoice of Rights,” into legislation in February after a 21-16 vote by the New Jersey Senate.

Additionally becoming a member of the lawsuit as plaintiffs are the American Staffing Affiliation and the New Jersey Enterprise and Business Affiliation.

The lawsuit argues the legislation incorporates burdensome laws on the staffing trade not present in in every other state. Notably problematic is a provision that requires equal pay between momentary employees and people instantly employed by consumer firms. The equal pay calculation is predicated on the typical fee of pay and common price of advantages for instantly employed employees.

“This provision in and of itself can convey the momentary staffing trade in New Jersey to a halt,” in response to the lawsuit. “This provision requires and assumes vital cooperation to be offered by the third-party consumer, and this provision assumes that the third-party consumer is keen to share its pay scale info with the momentary staffing company. These assumptions should not correct.”

There are additionally questions on what constitutes equal work by instantly employed employees.

Along with the state of New Jersey, others named as defendants within the case are the New Jersey commissioner of labor and workforce growth, the appearing director of client affairs, the New Jersey Division of Labor and Workforce Improvement and the New Jersey Division of Client Affairs.

The laws was enacted on Feb. 6, 2023; some sections grew to become efficient on Might 7, and different sections will turn into efficient on Aug. 5.

The lawsuit additionally famous momentary staffing corporations employed greater than 510,000 employees in New Jersey in 2021 alone.


Steven Harz, an legal professional for the plaintiffs, stated a listening to has been set for June 13 relating to a request for a short lived restraining order. If granted, the order would forestall the legislation from going into impact. The aim of the lawsuit is to get a everlasting injunction in opposition to the legislation.

Harz famous that many provisions of the legislation are extraordinarily imprecise and violate the Dormant Commerce clause and Equal Safety clause of the US Structure. The Dormant Commerce clause offers solely the US Congress the appropriate to supervise interstate commerce, and the argument is the New Jersey legislation would contact on interstate commerce as a result of it might impression staffing corporations doing enterprise in different states. For instance, a New Jersey staffing agency doing enterprise in neighboring New York or Pennsylvania can be impacted by the legislation.

As well as, the equal pay provision of the legislation can be imprecise, and Harz argued the legislation wouldn’t assure increased wages for momentary employees. Immediately employed employees could be paid lower than contingent employees, or the consumer firm won’t have instantly employed employees.

“The state appears to be effectively intentioned, however they’re misguided in pondering this statute is one thing optimistic,” Harz stated. In actuality, it’s seemingly the legislation will trigger staffing corporations to exit of enterprise, which means fewer jobs for employees.

“The statute primarily doesn’t work,” he stated.

Case quantity is 1:2023-cv-02494.

Individually, there will likely be dialogue of the New Jersey legislation within the subsequent concern of Staffing Business Evaluate to be launched on Might 16.

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