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Judge rejects second challenge to New Jersey temp worker law

Judge rejects second challenge to New Jersey temp worker law

Craig Johnson
| September 5, 2024
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A federal judge in New Jersey denied the New Jersey staffing industry’s second attempt at a preliminary injunction against the state’s “Temporary Workers’ Bill of Rights” for industrial contingent workers. Judge Christine P. O’Hearn described the efforts as a “proverbial second bite at the apple” in her opinion dated Aug. 8.

Plaintiffs, which include the New Jersey Staffing Alliance, New Jersey Business and Industry Association and the American Staffing Association, initially sought a temporary restraining order and preliminary injunction to stop the entire act on May 5, 2023. That was denied, according to court records. Plaintiffs filed an amended complaint on May 21, 2024. An appeal was denied.

The current argument aims only at a provision in the New Jersey law. This provision requires temporary workers not receive less than the average pay rate and benefits of similarly situated but directly employed workers.

The staffing industry sought to prevent enforcement of the equal benefits provision of the act, arguing it is preempted by ERISA [the federal Employee Retirement Income Security Act]. The judge did not accept the argument.

O’Hearn wrote in her opinion, “… while it is possible that plaintiffs may ultimately succeed on the merits, they have not carried their burden to show they are likely to succeed and, most importantly, fail to make the necessary showing with respect to irreparable harm, particularly considering and balancing the significant public interests and the greater harm that would result from granting injunctive relief at this time.”

Plaintiffs also “inexcusably delayed” bringing their ERISA preemption claim, she wrote. Temporary workers — who have seen their wages rise since the act went into effect in August 2023 — would be harmed by possibly receiving lower wages if the injunction were in place

SIA has reached out to the industry’s attorney named in lawsuit for comment.

New Jersey Staffing Alliance et al v. Fais et al; US District Court for the District of New Jersey; 1:23-cv-02494-CPO-MJS