The Third Circuit U.S. Court of Appeals has upheld a federal district court’s denial of the staffing industry’s request in a lawsuit filed last year to halt the New Jersey Temporary Workers’ Bill of Rights Act on various constitutional grounds.
The lawsuit was brought by New Jersey Staffing Alliance, the American Staffing Association and NJBIA, which argued the temporary worker law was unduly vague, and an improper exercise of legislative power. The appellate court found those arguments were unlikely to be successful – a key condition of granting injunctive relief – so the case now goes back to the district court for a final ruling on those issues.
“While we are disappointed by the appeals court ruling, it does not affect a separate industry claim, filed in May, that the Act’s equal benefits mandate violates the federal Employee Retirement Income Security Act (ERISA),” NJBIA Vice President of Government Affairs Elissa Frank said. “That claim is currently pending before the district court.”
The temporary worker law, passed in 2023, applies to construction, light industrial, and other workers – excluding professional and clerical. In addition to mandating equal pay and benefits for temporary employees, the law limits conversion fees, and bars staffing agencies from charging employees for transportation.
U.S. District Court Judge Christine O’Hearn denied the temporary injunction request made by the New Jersey Staffing Alliance, American Staffing Association and NJBIA last year. On Wednesday, the Third Circuit U.S. Court of Appeals unanimously upheld that decision.
