NJBIA Vice President of Government Affairs Alexis Bailey issued the following statement regarding the conditional veto of bill A-1474/S-511 by Gov. Phil Murphy today. NJBIA has long opposed the legislation as it will result in burdensome requirements, and possibly lawsuits, for temporary staffing agencies and the third-party companies that utilize them.
The bill now returns to the Legislature, which would need to concur with the Governor’s recommendations before the bill can become law.
“While we are pleased that this overreaching bill was not signed into law today, the burdensome provisions that strike temp agencies and employers who use them unfortunately remain in the governor’s CV.
“The most problematic provision of the bill which remains is a requirement that temporary workers receive the same compensation and benefits as their equivalent employee counterparts.
“We remain steadfast in our position that that condition is unworkable. Temp agencies contract with multiple businesses that all have various benefits packages. These packages can encompass everything from 401k matches and health insurance to vacation days and life insurance policies.
“Calculating and providing payment for the average cost of various benefits packages will be a logistical challenge. This provision will so greatly drive up the cost of utilizing a temp agency that it will jeopardize the staffing industry, harming businesses in need of temporary labor as well as workers who prefer these jobs.
“Further, this extreme benefit provision is not included in any other state that has passed similar legislation.
“The conditional veto also does not disrupt the path to litigation for third-party businesses that use workers from a properly registered temporary help service firm – even if the firm unknowingly or knowingly commits violations that are out of the business’s control.
“As this bill only narrowly passed the Senate and the Assembly before reaching the governor’s desk, we look forward to continuing to work with the sponsor and the lawmakers to bring better fairness and balance to New Jersey’s business community.”