Temporary Workers' Bill of Rights
This statute and rule reprint is for ready reference only. For official text consult the New Jersey Statutes Annotated and the New Jersey Administrative Code.
CHAPTER 8D. Temporary Labor
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Findings, declarations |
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Definitions |
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Temporary help service firm, statement provided, time of dispatch, information, certain |
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Temporary help service firm, designated classification placements, recordkeeping, information, certain |
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Fee charge, transportation, designated work site, prohibited |
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Wage payment, temporary help service firm, itemized statement, listing information, certain |
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Restriction, temporary laborer, permanent position acceptance, prohibited |
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Temporary help service firm, designated classification placements, certified by director |
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Violation, uncertified temporary help service firm, contract |
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Violation, temporary help service firm, third party client, retaliation, exercising rights granted |
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Aggrieved person, temporary help service firm, third party client violation, civil action, Superior Court |
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Director, authority, suspend, revoke, refuse certification; notification |
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Rights, obligations |
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CHAPTER 72. TEMPORARY LABORERS |
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SUBCHAPTER 1. GENERAL PROVISIONS |
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Purpose and scope |
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Retaliation prohibited |
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Administrative penalties |
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Hearings |
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Processing of complaints |
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SUBCHAPTER 2. DEFINTIONS |
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Definitions |
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SUBCHAPTER 3. REQUIRED NOTICES FROM TEMPORARY HELP SERVICE FIRM TO TEMPORARY LABORER |
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Assignment notification statement at dispatch |
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Notice of change on multi-day assignment |
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Notice of labor dispute |
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Confirmation of having sought work |
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Translation of notices into languages other than English |
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SUBCHAPTER 4. RECORDKEEPING |
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Recordkeeping obligations; temporary help service firm |
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Recordkeeping and record remitting obligations; third-party client |
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Inspection |
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SUBCHAPTER 5. TRANSPORTATION |
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Requiring use prohibited |
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Charging a fee prohibited |
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Referrals |
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Motor vehicle safety |
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Transportation back to point of hire |
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SUBCHAPTER 6. POST EMPLOYMENT RESTRICTIONS |
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Post employment restriction prohibited |
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Placement fee |
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SUBCHAPTER 7. PAY EQUITY |
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Temporary laborer pay equity requirement |
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Calculation of the minimum hourly rate of pay that the temporary help service firm must pay the temporary laborer based on the average rate of pay and average cost of benefits of comparator employees of the third-party client |
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Determining whether a temporary laborer and third-party client employee are performing substantially similar work |
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SUBCHAPTER 8. CHARGES; PAYROLL DEDUCTIONS |
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Unreturned reusable equipment |
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Additional equipment, clothing, accessories, or other items that are not required by the nature of the work, that are made available for purchase |
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Meals |
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Consumer report, criminal background check, or drug test |
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SUBCHAPTER 9. OTHER TEMPORARY HELP SERVICE FIRM RESPONSIBILITIES, THIRD-PARTY CLIENT RESPONSIBILITIES, AND TEMPORARY LABORER PROTECTIONS |
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Detailed itemized statement |
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Work verification; third-party client |
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Annual earnings summary |
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Holding of daily wages in favor of bi-weekly payments |
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Time and mode of wage payments; check cashing fees prohibited |
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Wage rate |
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Non-utilization; change in worksite |
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SUBCHAPTER 10. THIRD-PARTY PAYMENTS TO TEMPORARY HELP SERVICE FIRM |
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Third-party client payments to temporary help service firm for wages and related payroll taxes |
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Complaints to the Commissioner |
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CHAPTER 8D. Temporary Labor
34:8D-1. Findings, declarations
The Legislature finds and declares:
a. At least 127,000 individuals work for temporary help service firms, sometimes referred to as temp agencies or staffing agencies, in New Jersey. Approximately 100 temporary help service firms with several branch offices are licensed throughout the State. Moreover, there are a large, though unknown, number of unlicensed temporary help service firms that operate outside the purview of law enforcement.
b. Recent national data indicate that the share of Black and Latino temporary and staffing workers far outstrips their proportion of the workforce in general. In addition to a heavy concentration in service occupations, temporary laborers are heavily concentrated in the production, transportation, and material moving occupations and manufacturing industries. Further, full-time temporary help service firm workers earn 41 percent less than workers in traditional work arrangements, and these workers are far less likely than other workers to receive employer-sponsored retirement and health benefits.
c. Recent studies and a survey of low-wage temporary laborers themselves find that, generally, these workers are particularly vulnerable to abuse of their labor rights, including unpaid wages, failure to pay for all hours worked, minimum wage and overtime violations, unsafe working conditions, unlawful deductions from pay for meals, transportation, equipment, and other items, as well as discriminatory practices.
d. This act is intended to further protect the labor and employment rights of these workers.
34:8D-2. Definitions
As used in P.L.2023, c.10 (C.34:8D-1 et al.):
“Commissioner” means Commissioner of Labor and Workforce Development, or a designee of the commissioner.
“Director” means Director of the Division of Consumer Affairs in the Department of Law and Public Safety, or a designee of the Director.
“Employ” means to suffer or permit to work for compensation, including by means of ongoing, contractual relationships in which the employer retains substantial direct or indirect control over the employee’s employment opportunities or terms and conditions of employment.
“Employer” means any person or corporation, partnership, individual proprietorship, joint venture, firm, company, or other similar legal entity who engages the services of an employee and who pays the employee’s wages, salary, or other compensation, or any person acting directly or indirectly in the interest of an employer in relation to an employee.
“Hours worked” means all of the time that the employee is required to be at the employee’s place of work or on duty. Nothing in P.L.2023, c.10 (C.34:8D-1 et al.) requires an employer to pay an employee for hours the employee is not required to be at the employee’s place of work because of holidays, vacation, lunch hours, illness, and similar reasons. “Designated classification placement” means an assignment of a temporary laborer by a temporary help service firm to perform work in any of the following occupational categories as designated by the Bureau of Labor Statistics of the United States Department of Labor: 33-90000 Other Protective Service Workers; 35-0000 Food Preparation and Serving Related Occupations; 37-0000 Building and Grounds Cleaning and Maintenance Occupations; 39-0000 Personal Care and Service Occupations; 47-2060 Construction Laborers; 47-30000 Helpers, Construction Trades; 49-0000 Installation, Maintenance, and Repair Occupations; 51-0000 Production Occupations; 53-0000 Transportation and Material Moving Occupations; or any successor categories as the Bureau of Labor Statistics may designate.
“Person” means any natural person or their legal representative, partnership, corporation, company, trust, business entity, or association, and any agent, employee, salesman, partner, officer, director, member, stockholder, associate, trustee, or beneficiary of a trust thereof.
“Temporary laborer” means a person who contracts for employment in a designated classification placement with a temporary help service firm. Temporary laborer does not include agricultural crew leaders who are registered under the federal Migrant and Seasonal Agricultural Worker Protection Act, 29 U.S.C. § 1801 et seq., P.L.1971, c.192 (C.34:8A-7 et seq.), or P.L.1945, c.71 (C.34:9A-1 et seq.).
“Temporary help service firm” means any person or entity who operates a business which consists of employing individuals directly or indirectly for the purpose of assigning the employed individuals to assist the firm’s customers in the handling of the customers’ temporary, excess or special workloads, and who, in addition to the payment of wages or salaries to the employed individuals, pays federal social security taxes and State and federal unemployment insurance; carries workers’ compensation insurance as required by State law; and sustains responsibility for the actions of the employed individuals while they render services to the firm’s customers. A temporary help service firm is required to comply with the provisions of P.L.1960, c.39 (C.56:8-1 et seq.).
“Third party client” means any person who contracts with a temporary help service firm for obtaining temporary laborers in a designated classification placement. Third party client does not include the State or any office, department, division, bureau, board, commission, agency, or political subdivision thereof that utilizes the services of temporary help service firms.
34:8D-3. Temporary help service firm, statement provided, time of dispatch, information, certain
a. Whenever a temporary help service firm agrees to send a person to work as a temporary laborer in a designated classification placement, the temporary help service firm shall provide the temporary laborer, at the time of dispatch, a statement, in writing in English and in the language identified by the employee as the employee’s primary language, containing the following items on a form approved by the commissioner, in a manner appropriate to whether the assignment is accepted at the temporary help service firm’s office, or remotely by telephone, text, email, or other electronic exchange:
(1) the name of the temporary laborer;
(2) the name, address, and telephone number of:
(a) the temporary help service firm, or the contact information of the firm’s agent facilitating the placement;
(b) its workers’ compensation carrier;
(c) the worksite employer or third party client; and
(d) the Department of Labor and Workforce Development;
(3) the name and nature of the work to be performed;
(4) the wages offered;
(5) the name and address of the assigned worksite of each temporary laborer;
(6) the terms of transportation offered to the temporary laborer, if applicable;
(7) a description of the position and whether it shall require any special clothing, protective equipment, and training, and what training and clothing will be provided by the temporary help service firm or the third party client; and any licenses and any costs charged to the employee for supplies or training;
(8) whether a meal or equipment, or both, are provided, either by the temporary help service firm or the third party client, and the cost of the meal and equipment, if any;
(9) for multi-day assignments, the schedule;
(10) the length of the assignment, if known; and
(11) the amount of sick leave to which temporary workers are entitled under P.L.2018, c.10 (C.34:11D-1 et seq.), and the terms of its use.
In the event of a change in the schedule, shift, or location of an assignment for a multi-day assignment of a temporary laborer in a designated classification placement, the temporary help service firm shall provide notice of the change not less than 48 hours in advance to the temporary laborer, when possible, in a manner appropriate to whether the assignment is accepted at the temporary help service firm’s office, or remotely by telephone, text, email, or other electronic exchange. The temporary help service firm shall bear the burden of showing that it was not possible to provide the required notice. In the event that the commissioner imposes a civil penalty under subsection d. of this section and the temporary help service firm requests a hearing to challenge the penalty, any dispute concerning whether it was possible for the temporary help service firm to provide the required notice shall be adjudicated during that hearing.
If a temporary laborer in a designated classification placement is assigned to the same assignment for more than one day, the temporary help service firm shall be required to provide the employment notice only on the first day of the assignment and on any day that any of the terms listed on the employment notice are changed.
If the temporary laborer is not placed with a third party client or otherwise contracted to work for that day, the temporary help service firm shall, upon request, provide the temporary laborer with a confirmation that the temporary laborer sought work, signed by an employee of the temporary help service firm, which shall include the name of the firm, the name and address of the temporary laborer, and the date and the time that the temporary laborer receives the confirmation.
b. No temporary help service firm shall send any temporary laborer to any designated classification placement where a strike, a lockout, or other labor dispute exists without providing, at the time of dispatch, a statement, in writing, informing the temporary laborer of the labor dispute, and the laborer’s right to refuse the assignment.
c. Temporary help service firms that make designated classification placements shall make available, whether through its own employees or the service of a vendor, personnel to effectively communicate the information required in subsections a. and b. of this section to temporary laborers in Spanish or in any other language that is generally understood in the locale of the temporary help service firm.
d. Any temporary help service firm that makes designated classification placements and that violates this section shall be subject to a civil penalty of not less than $500 and not to exceed $1,000 for each violation found by the commissioner. That penalty shall be collected by the commissioner in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).
e. The commissioner, in consultation with the Office of the New Americans within the Department of Human Services, shall develop and implement a multilingual outreach program to inform temporary laborers in a designated classification placement about their rights pursuant to P.L.2023, c.10 (C.34:8D-1 et al.). The program shall develop written materials in various languages based on the 10 most prevalent language access needs in the State, and may periodically reevaluate the language access needs and adjust translation efforts accordingly. The program shall include the distribution of written materials to qualifying organizations who work with temporary workers in a designated classification placement, and shall engage in regular outreach to these organizations to determine how the commissioner can better inform temporary laborers of their rights. For purposes of this subsection, qualifying organizations are organizations that have a minimum of five years of experience working with temporary laborers or hiring entities, and organizations that work with nonprofit organizations that have a minimum of five years of experience working with temporary laborers or hiring entities.
34:8D-4. Temporary help service firm, designated classification placements, recordkeeping, information, certain
a. Whenever a temporary help service firm sends one or more persons to work as temporary laborers in designated classification placements, the temporary help service firm shall keep the following records relating to that transaction:
(1) the name, address, and telephone number of the third party client, including each worksite, to which temporary laborers were sent by the temporary help service firm and the date of the transaction;
(2) for each temporary laborer: the name and address, the specific location sent to work, the type of work performed, the number of hours worked, the hourly rate of pay, and the date sent. The third party client shall be required to remit all information required under this paragraph to the temporary help service firm no later than seven days following the last day of the work week worked by the temporary laborer;
(3) the name and title of the individual or individuals at each third party client’s place of business responsible for the transaction;
(4) any specific qualifications or attributes of a temporary laborer, requested by each third party client;
(5) copies of all contracts, if any, with the third party client and copies of all invoices for the third party client;
(6) copies of all employment notices provided in accordance with subsection a. of section 3 of P.L.2023, c.10 (C.34:8D-3);
(7) the amounts of any deductions to be made from each temporary laborer’s compensation by either the third party client or by the temporary help service firm for the temporary laborer’s food, equipment, withheld income tax, withheld contributions to the State unemployment compensation trust fund and the State disability benefits trust fund withheld Social Security deductions, and every other deduction;
(8) verification of the actual cost of any equipment or meal charged to a temporary laborer; and
(9) any additional information required by the commissioner.
b. The temporary help service firm shall maintain all records under this section for a period of six years from their creation. The records shall be open to inspection by the commissioner during normal business hours. Records described in paragraphs (1), (2), (3), (6), (7), and (8) of subsection a. of this section shall be available for review and copying by that temporary laborer at no cost or an authorized representative of the temporary laborer during normal business hours within five days following a written request. For purposes of this subsection, an authorized representative of the temporary laborer is a person as to whom the temporary laborer has presented to the temporary help service firm an authorization signed by the temporary laborer that expressly permits the person to review and copy the subject records.
In addition, a temporary help service firm that makes designated classification placements shall make records related to the number of hours billed to a third party client for that individual temporary laborer’s hours of work available for review or copying, at no cost, during normal business hours within five days following a written request. The temporary help service firm shall make forms, in duplicate, for those requests available at no cost to temporary laborers at the dispatch office. The temporary laborer shall be given a copy of the request form. It shall be a violation of this section to make any false, inaccurate, or incomplete entry into, or to delete required information from, any record required by this section.
c.
(1) Failure by the third party client to maintain and remit accurate time records to the temporary help service firm as provided in paragraph (2) of subsection a. of this section shall constitute a violation by a third party client under section 11 of P.L.2023, c.10 (C.34:8D-11), unless the third party client has been precluded from submitting those time records for reasons beyond its control. A third party client that violates paragraph (2) of subsection a. of this section shall be subject to a civil penalty not to exceed $500 for each violation found by the commissioner. The penalty shall be collected in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).
(2) A failure by the third party client to provide time records in accordance with subsection b. of this section shall not be a violation and shall not be the basis for a suit or other action under section 11 of P.L.2023, c.10 (C.34:8D-11), against the temporary help service firm.
(3) Failure of a third party client to remit any information required by this section to a temporary help service firm shall not be a defense to the temporary help service firm recordkeeping requirements of this section.
34:8D-5. Fee charge, transportation, designated work site, prohibited
a. A temporary help service firm or a third party client, or a contractor or agent of either, shall charge no fee to a temporary laborer in a designated classification placement to transport a temporary laborer to or from the designated work site.
b. A temporary help service firm shall be jointly and severally liable for the conduct and performance of any person who transports a temporary laborer in a designated classification placement from the firm to a work site, unless the transporter is:
(1) a public mass transportation system;
(2) a common carrier;
(3) the temporary laborer providing his or her own transportation; or
(4) selected exclusively by and at the sole choice of the temporary laborer for transportation in a vehicle not owned or operated by the temporary help service firm.
If any temporary help service firm provides transportation to a temporary laborer in a designated classification placement or refers a temporary laborer in a designated classification placement as provided in subsection d. of this section, the temporary help service firm shall not allow a motor vehicle to be used for the transporting of temporary laborers if the temporary help service firm knows or should know that the motor vehicle used for the transportation of temporary laborers is unsafe or not equipped as required by P.L.2023, c.10 (C.34:8D-1 et al.), unless the vehicle is:
(1) the property of a public mass transportation system;
(2) the property of a common carrier;
(3) the temporary laborer’s personal vehicle; or
(4) a vehicle of a temporary laborer used to carpool other temporary laborers and which is selected exclusively by and at the sole choice of the temporary laborer for transportation.
c. A temporary help service firm shall not require a temporary laborer in a designated classification placement to use transportation provided by the firm or by another provider of transportation services.
d. A temporary help service firm shall not refer a temporary laborer in a designated classification placement to any person for transportation to a work site unless that person is:
(1) a public mass transportation system; or
(2) providing the transportation at no fee to the temporary laborer.
Directing a temporary laborer in a designated classification placement to accept a specific car pool as a condition of work shall be considered a referral by the temporary help service firm. Any mention or discussion of the cost of a car pool shall be considered a referral by the temporary help service firm. Informing a temporary laborer in a designated classification placement of the availability of a car pool driven by another temporary laborer shall not be considered a referral by the temporary help service firm.
The temporary help service firm shall obtain, and keep on file, documentation that any provider of transportation to a temporary laborer in a designated classification placement that the temporary help service firm makes referrals to or contracts with is in compliance with the requirements of subsections e., f., and g. of this section. The commissioner may randomly audit a temporary help service firm to ensure that the firm is maintaining the documentation required by this subsection.
e. Any motor vehicle that is owned or operated by a temporary help service firm that makes designated classification placements or a third party client of such a firm, or a contractor or agent of either, or to which a temporary help service firm refers a temporary laborer in a designated classification, which is used for the transportation of temporary laborers in a designated classification placement, shall comply with minimum insurance requirements set by the State of New Jersey. The driver of the vehicle shall hold a valid license to operate motor vehicles in the correct classification and shall be required to produce the license immediately upon demand by the commissioner or any other person authorized to enforce P.L.2023, c.10 (C.34:8D-1 et al.). The commissioner shall forward a violation of this subsection to the appropriate law enforcement authority or regulatory agency.
f. A motor vehicle that is owned or operated by the temporary help service firm that makes designated classification placements or a third party client of such a firm, or a contractor or agent of either, or to which a temporary help service firm refers a temporary laborer in a designated classification placement, which is used for the transportation of temporary laborers in a designated classification placement, shall have a seat and a safety belt for each passenger. The commissioner shall forward a violation of this subsection to the appropriate law enforcement authority or regulatory agency.
g. Unless the temporary laborer in a designated classification placement requests otherwise, when a temporary laborer in a designated classification placement has been transported to a work site, the temporary help service firm or a third party client, or a contractor or agent of either, shall provide transportation back to the point of hire at the end of each work day.
h. The obligations imposed by this section shall be in addition to those set forth in subsection d. of section 14 of P.L.1981, c.1 (C.56:8-1.1) and any rules or regulations promulgated thereunder.
i. The commissioner may promulgate regulations under this section in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.).
j. The commissioner may assess a penalty against a temporary help service firm that violates this section or any rules or regulations adopted pursuant to this section of up to $5,000 for each violation, except that the penalty for a violation of the recordkeeping requirements of this section shall not exceed $500 for each violation. Each day that a temporary help service firm fails to comply with this section shall constitute a separate offense. Any penalty assessed under this section shall be collected by the commissioner in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).
34:8D-6. Wage payment, temporary help service firm, itemized statement, listing information, certain
a. At the time of payment of wages, a temporary help service firm shall provide each temporary laborer in a designated classification placement with a detailed itemized statement, on the temporary laborer’s paycheck stub or on a form approved by the commissioner, listing the following:
(1) the name, address, and telephone number of each third party client at which the temporary laborer worked. If this information is provided on the temporary laborer’s paycheck stub, a code for each third party client may be used so long as the required information for each coded third party client is made available to the temporary laborer;
(2) the number of hours worked by the temporary laborer at each third party client each day during the pay period. If the temporary laborer is assigned to work at the same work site of the same third party client for multiple days in the same work week, the temporary help service firm may record a summary of hours worked at that third party client’s worksite so long as the first and last day of that work week are identified as well;
(3) the rate of payment for each hour worked, including any premium rate or bonus. Overtime pay shall be paid in accordance with the provisions of subsection b. of section 5 of P.L.1966, c.113 (C.34:11-56a4);
(4) the total pay period earnings;
(5) the amount of each deduction made from the temporary laborer’s compensation made by the temporary help service firm, and the purpose for which each deduction was made, including for the temporary laborer’s food, equipment, withheld income tax, withheld Social Security deductions, withheld contributions to the State unemployment compensation trust fund and the State disability benefits trust fund, and every other deduction; the current maximum amount of a placement fee which the temporary help service firm may charge to a third party client to directly hire the temporary laborer pursuant to subsection a. of section 7 of P.L.2023, c.10 (C.34:8D-7); and
(6) any additional information required by the commissioner.
For each temporary laborer in a designated classification placement who is contracted to work a single day, the third party client shall, at the end of the work day, provide such temporary laborer with a work verification form, approved by the commissioner, which shall contain the date, the temporary laborer’s name, the work location, and the hours worked on that day. Any third party client who violates this section shall be subject to a civil penalty not to exceed $500 for each violation found by the commissioner. The maximum civil penalty shall increase to $2,500 for a second or subsequent violation. Each violation of paragraph 1 of this subsection for each temporary laborer and for each day the violation continues shall constitute a separate and distinct violation. That penalty shall be collected by the commissioner in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).
b. A third party client shall not withhold or divert the wages of a temporary laborer in a designated classification placement for any reason. Except as otherwise authorized pursuant to this section, a temporary help service firm shall not withhold or divert the wages of a temporary laborer in a designated classification placement for any reason. A temporary help service firm shall provide each temporary laborer with an annual earnings summary within a reasonable time after the preceding calendar year, but in no case later than February 1 of each year. A temporary help service firm shall, at the time of each wage payment, give notice to temporary laborers in a designated classification placement of the availability of the annual earnings summary or post such a notice in a conspicuous place in the public reception area.
c. At the request of a temporary laborer in a designated classification placement, a temporary help service firm shall hold the daily wages of the temporary laborer and make bi-weekly payments. The wages shall be paid in a single check, or, at the temporary laborer’s sole option, by direct deposit or other manner approved by the commissioner, representing the wages earned during the period in accordance with P.L.1965, c.173 (C.34:11-4.1 et seq.).
Vouchers or any other method of payment which are not negotiable shall be prohibited as a method of payment of wages. Temporary help service firms that make daily wage payments shall provide written notification to all temporary laborers in a designated classification placement of the right to request bi-weekly checks. The temporary help service firm may provide this notice by conspicuously posting the notice at the location where the wages are received by the temporary laborers.
d. No temporary help service firm shall charge any temporary laborer in a designated classification placement for cashing a check issued by the temporary help service firm for wages earned by a temporary laborer who performed work through that temporary help service firm. No temporary help service firm or third party client shall charge any temporary laborer in a designated classification placement for the expense of conducting any consumer report, as that term is defined in the “Fair Credit Reporting Act,” (15 U.S.C. § 1681 et seq.), any criminal background check of any kind, or any drug test of any kind.
e. Temporary laborers in a designated classification placement shall be paid no less than the wage rate stated in the notice as provided in section 3 of P.L.2023, c.10 (C.34:8D-3), for all the work performed on behalf of the third party client in addition to the work listed in the written description.
f.
(1) The total amount deducted for meals and equipment shall not cause the hourly wage of a temporary laborer in a designated classification placement to fall below the State or federal minimum wage, whichever is greater.
(2) A temporary help service firm may deduct the actual market value of reusable equipment provided to a temporary laborer in a designated classification placement by the temporary help service firm which the temporary laborer fails to return, if the temporary laborer provides a written authorization for that deduction at the time the deduction is made. For any additional equipment, clothing, accessories, or other items which are not required by the nature of the work, either by law, custom, or as a requirement of the third party client that a temporary help service firm makes available to temporary laborers in designated classification placements for purchase, the temporary help service firm shall charge no more than actual market value.
(3) A temporary help service firm shall not charge a temporary laborer in a designated classification placement for any meal not consumed by the temporary laborer and, if consumed, no more than the actual cost of a meal. The purchase of a meal shall not be a condition of employment for a temporary laborer in a designated classification placement.
g. A temporary laborer who is contracted by a temporary help service firm to work at a third party client’s worksite in a designated classification placement but who is not utilized by the third party client, shall be paid by the temporary help service firm for a minimum of four hours of pay at the agreed upon rate of pay. However, in the event the temporary help service firm contracts the temporary laborer to work at another location during the same shift, the temporary laborer shall be paid by the temporary help service firm for a minimum of two hours of pay at the agreed upon rate of pay.
h. A third party client is required to reimburse a temporary help service firm wages and related payroll taxes for services performed for a third party client by a temporary laborer in a designated classification placement according to payment terms outlined on invoices, service agreements, or stated terms provided by the temporary help service firm. A third party client who fails to comply with this subsection is subject to the penalties provided in section 11 of P.L.2023, c.10 (C.34:8D-11).
The commissioner shall review a complaint filed by a temporary help service firm that makes designated classification placements against a third party client. The commissioner shall review the payroll and accounting records of the temporary help service firm and the third party client for the period in which the violation of P.L.2023, c.10 (C.34:8D-1 et al.) is alleged to have occurred to determine if wages and payroll taxes have been paid to the temporary help service firm and that the temporary laborer has been paid the wages owed.
i. Any temporary help service firm that violates this section shall be subject to a civil penalty not to exceed $500 for each violation found by the commissioner. That penalty shall be collected by the commissioner in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).
34:8D-7. Restriction, temporary laborer, permanent position acceptance, prohibited
a.
(1) No temporary help service firm shall restrict the right of a temporary laborer in a designated classification placement to accept a permanent position with a third party client to whom the temporary laborer has been referred for work, restrict the right of a third party client to offer employment to a temporary laborer, or restrict the right of a temporary laborer to accept a permanent position for any other employment. A temporary help service firm may charge a placement fee to a third party client for employing a temporary laborer in a designated classification placement for whom a contract for work was effected by the temporary help service firm not to exceed the equivalent of the total daily commission rate the temporary help service firm would have received over a 60-day period, reduced by the equivalent of the daily commission rate the temporary help service firm would have received for each day the temporary laborer has performed work for the temporary help service firm in the preceding 12 months.
(2) Any temporary help service firm which charges a placement fee to a third party client for employing a temporary laborer in a designated classification placement shall include on the wage payment and notice form of each affected temporary laborer the maximum amount of a fee that shall be charged to a third party client by the temporary help service firm, and the total amount of actual charges to the third party client for the temporary laborer during each pay period compared to the total compensation cost for the temporary laborer, including costs of any benefits provided. Failure to provide the required information shall constitute a separate violation for each day the temporary help service firm fails to provide the required information. No fee provided for under this section shall be assessed or collected by the temporary help service firm when a temporary laborer in a designated classification placement is offered permanent work following the suspension, revocation, or non-renewal of the temporary help service firm’s certification by the director.
b. Any temporary laborer assigned to work at a third party client in a designated classification placement shall not be paid less than the average rate of pay and average cost of benefits, or the cash equivalent thereof, of employees of the third party client performing the same or substantially similar work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions for the third party client at the time the temporary laborer is assigned to work at the third party client. Each violation of this subsection for each affected temporary laborer shall constitute a separate violation under section 11 of P.L.2023, c.10 (C.34:8D-11).
c. Any temporary help service firm that violates this section shall be subject to a civil penalty not to exceed $5,000 for each violation found by the commissioner. That penalty shall be collected by the commissioner in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).
d. If a third party client leases or contracts with a temporary help service firm for the services of a temporary laborer in a designated classification requirement, the third party client shall be, with the temporary help service firm, jointly and severally responsible for any violation of this section, including with respect to relief provided by section 11 of P.L.2023, c.10 (C.34:8D-11) and civil penalties found by the commissioner.
34:8D-8. Temporary help service firm, designated classification placements, certified by director
a. A temporary help service firm which is located, operates, or transacts business within this State shall not make any designated classification placements unless it is certified by the director to do so, in accordance with rules adopted by the director and shall be subject to P.L.2023, c.10 (C.34:8D-1 et al.). Each temporary help service firm seeking certification to make designated classification placements shall provide proof of an employer account number issued by the commissioner for the payment of unemployment insurance contributions as required under the “unemployment compensation law,” R.S.43:21-1 et seq.; proof of valid workers’ compensation insurance in effect at the time of certification covering all of its employees; on a form created by the director, the number of temporary laborers previously in designated classification placements whom the temporary help service firm has placed in a permanent position with a third party client in the preceding 12 months as well as the percentage those permanent placements represent of the total number of temporary laborers in designated classification placements contracted by the temporary help service firm during the same period; and such other information as the director may require pursuant to rules adopted under this section. If, at any time, the workers’ compensation insurance coverage for a temporary help service firm that makes designated classification placements lapses, the temporary help service firm shall have an affirmative duty to report the lapse of coverage to the director and the temporary help service firm’s certification shall be suspended until the firm’s workers’ compensation insurance is reinstated. A temporary help service firm shall inform the director of any change or addition to the information required under this subsection within 30 days of the change or addition.
The director shall assess each temporary help service firm seeking certification to make designated classification placements a non-refundable certification fee not exceeding $2,000 per year per temporary help service firm and a non-refundable fee not to exceed $750 per year for each branch office or other location where the temporary help service firm regularly conducts its business, including but not limited to contracting with and recruiting with temporary laborers for designated classification placement services. The fee shall be paid by check or money order, and the director may not refuse to accept a check on the basis that it is not a certified check or a cashier’s check. The director may charge an additional fee to be paid by a temporary help service firm that makes designated classification placements if the firm, or any person on the firm’s behalf, issues or delivers a check to the director that is not honored by the financial institution upon which it is drawn. The director shall adopt rules for violation hearings and penalties for violations of P.L.2023, c.10 (C.34:8D-1 et al.). The director shall give the commissioner access to any information that the director receives pursuant to this section.
b. It is a violation of P.L.2023, c.10 (C.34:8D-1 et al.) to operate a temporary help service firm that makes designated classification placements without being certified by the director in accordance with subsection a. of this section. The Division of Consumer Affairs in the Department of Law and Public Safety shall create and maintain on its Internet website, accessible to the public:
(1) a list of all certified temporary help service firms in the State that make designated classification placements whose certification is in good standing;
(2) a list of temporary help service firms in the State that make designated classification placements whose certification has been suspended, including the reason for the suspension, the date that the suspension was initiated, and the date, if known, that the suspension is to be lifted; and
(3) a list of temporary help service firms in the State that make designated classification placements whose certification has been revoked, including the reason for the revocation and the date that the certification was revoked.
The director shall assess a penalty against any temporary help service firm that makes designated classification placements and that fails to obtain a certification from the director in accordance with P.L.2023, c.10 (C.34:8D-1 et al.) or any rules adopted under P.L.2023, c.10 (C.34:8D-1 et al.) of $5,000 for each violation. Each day during which a person operates as a temporary help service firm that makes designated classification placements without being certified as a temporary help service firm with the director pursuant to this section shall be a separate and distinct violation of P.L.2023, c.10 (C.34:8D-1 et al.). That penalty shall be collected by the director in a summary proceeding in accordance with the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).
A temporary help service firm that makes designated classification placements shall obtain a surety bond issued by a surety company admitted to do business in this State. The principal sum of the bond shall not be less than $200,000. A copy of the bond shall be filed with the director.
The bond required by this section shall be in favor of, and payable to, the people of the State of New Jersey, and shall be for the benefit of any temporary laborer damaged by the temporary help service firm’s failure to pay wages, interest on wages, or fringe benefits, or damaged by violation of this section.
Thirty days prior to the cancellation or termination of any surety bond required by this section, the surety shall send written notice to both the temporary help service firm and the director identifying the bond and the date of the cancellation or termination.
A temporary help service firm that makes designated classification placements shall not conduct any business until it obtains a new surety bond and files a copy of it with the director.
This subsection shall not apply to a temporary help service firm whose temporary laborers are covered by a valid collective bargaining agreement, if the agreement expressly provides for:
(1) Wages;
(2) Hours of work;
(3) Working conditions;
(4) An expeditious process to resolve disputes concerning nonpayment of wages;
(5) Documentation of its current workers’ compensation insurance policy in effect for the temporary laborers; and
(6) Compliance with all provisions of this section.
c. The principal executive officer of a temporary help service firm that makes designated classification placements shall certify under oath at the time of certification of the temporary help service firm each year on a form created by the director that:
(1) the signing officer has reviewed the certification form of the temporary help service firm and confirmed the information is true and accurate to the best of the officer’s knowledge;
(2) the signing officer has reviewed the recordkeeping practices of the temporary help service firm and confirmed that the recordkeeping practices comply with the requirements of section 4 of P.L.2023, c.10 (C.34:8D-4) to the best of his or her knowledge;
(3) the signing officer has reviewed the temporary help service firm’s filing as required by subsection a. of section 8 of P.L.2023, c.10 (C.34:8D-8), related to the placement of temporary laborers in permanent positions with third party clients and has confirmed that those practices comply with the requirements of section 7 of P.L.2023, c.10 (C.34:8D-7) and section 14 of P.L.1981, c.1 (C.56:8-1.1), to the best of the officer’s knowledge;
(4) the signing officer has reviewed the temporary help service firm’s practices related to the transportation of temporary laborers and has confirmed that those practices comply with the requirements of section 5 of P.L.2023, c.10 (C.34:8D-5) to the best of the officer’s knowledge;
(5) the signing officer has reviewed and is responsible for the surety bond posted by the temporary help service firm and its renewals; and
(6) the signing officer:
(a) is responsible for establishing and maintaining internal controls to comply with the recordkeeping requirements; and
(b) has evaluated the effectiveness of the internal controls.
d. An applicant is not eligible to obtain or renew a certification to operate a temporary help service firm that makes designated classification placements under P.L.2023, c.10 (C.34:8D-1 et al.) if the applicant or any of its officers, directors, partners, or managers or any owner having 25 percent or greater beneficial interest:
(1) has been involved, as owner, officer, director, partner, or manager, of a temporary help service firm the registration or certification of which has been revoked or suspended without being reinstated within the five years immediately preceding the filing of the application; or
(2) is under the age of 18.
e. Every temporary help service firm that makes designated classification placements shall post and keep posted at each location, in a position easily accessible to all employees, notices as supplied and required by the commissioner containing a copy or summary of the provisions of P.L.2023, c.10 (C.34:8D-1 et al.), and a notice which informs the public of a toll-free telephone number operated by the commissioner for temporary laborers in designated classification placements and the public to file wage dispute complaints and other alleged violations by temporary help service firms that make designated classification placements. The notices shall be in English or any other language generally understood in the locale of the temporary help service firm.
f. No temporary help service firm shall be permitted to obtain or renew a certification to make designated classification placements in New Jersey until it has complied with the requirements of this section.
g. Notwithstanding any law, rule, or regulation to the contrary, any person or entity that meets the definition of temporary help service firm and that makes designated classification placements as those terms are defined in section 2 of P.L.2023, c.10 (C.34:8D-2), shall obtain a certification pursuant to this section and otherwise comply with the provisions of P.L.2023, c.10 (C.34:8D-1 et al.), regardless of whether the person or entity is licensed or registered as one or more of the entities identified in section 1 of P.L.1989, c.331 (C.34:8-43).
h. The requirements of this section shall be in addition to those imposed by any other applicable law, rule, or regulation, including section 14 of P.L.1981, c.1 (C.56:8-1.1) and any rules or regulations promulgated thereunder. A temporary help service firm shall not receive a certification under this section unless it is either registered as a temporary help service firm pursuant to section 14 of P.L.1981, c.1 (C.56:8-1.1) and any rules or regulations promulgated thereunder, or licensed or registered as an entity authorized by any other law, rule, or regulation to provide temporary help services.
34:8D-9. Violation, uncertified temporary help service firm, contract
It is a violation of P.L.2023, c.10 (C.34:8D-1 et al.) for a third party client to enter into a contract with a temporary help service firm not certified under section 8 of P.L.2023, c.10 (C.34:8D-8), for the assignment of a temporary laborer to a designated classification placement. A third party client shall verify a temporary help service firm’s status with the director before entering into a contract with the temporary help service firm for the assignment of a temporary laborer to a designated classification placement, and on March 1 and September 1 of each year.
A temporary help service firm shall provide each of its third party clients with proof of valid certification issued by the director at the time of entering into a contract for the assignment of a temporary laborer to a designated classification placement. A temporary help service firm shall be required to notify, both by telephone and in writing, each temporary laborer it assigns to a designated classification placement and each third party client with whom it has a contract for the assignment of a temporary laborer to a designated classification placement within 24 hours of any denial, suspension, revocation, or non-renewal of its certification by the director. All contracts between any temporary help service firm and any third party client for the assignment of a temporary laborer to a designated classification placement shall be considered null and void from the date any denial, suspension, revocation, or non-renewal of certification becomes effective and until such time as the temporary help service firm becomes certified and considered in good standing by the director as provided in section 8 of P.L.2023, c.10 (C.34:8D-8).
Upon request, the director shall provide to a third party client a list of entities certified as temporary help service firms pursuant to section 8 of P.L.2023, c.10 (C.34:8D-8). A third party client may rely on information provided by the director or maintained on the Division of Consumer Affair’s website pursuant to section 8 of P.L.2023, c.10 (C.34:8D-8), and shall be held harmless if such information maintained or provided by the director or the division was inaccurate. Any third party client that violates this section shall be subject to a civil penalty not to exceed $500. Each day during which a third party client contracts with a person operating as a temporary help service firm but not certified as a temporary help service firm under section 8 of P.L.2023, c.10 (C.34:8D-8), shall constitute a separate and distinct offense.
34:8D-10. Violation, temporary help service firm, third party client, retaliation, exercising rights granted
a. It is a violation of P.L.2023, c.10 (C.34:8D-1 et al.) for a temporary help service firm or third party client, or any agent of a temporary help service firm or third party client, to retaliate through discharge or in any other manner against any temporary laborer in a designated classification placement for exercising any rights granted under P.L.2023, c.10 (C.34:8D-1 et al.). The termination or disciplinary action by a temporary help service firm against a temporary laborer in a designated classification placement within 90 days of the person’s exercise of rights protected under P.L.2023, c.10 (C.34:8D-1 et al.) shall raise a rebuttable presumption of having done so in retaliation for the exercise of those rights. Such retaliation shall subject a temporary help service firm or third party client, or both, to civil penalties pursuant to P.L.2023, c.10 (C.34:8D-1 et al.) or a private cause of action.
b. It is a violation of P.L.2023, c.10 (C.34:8D-1 et al.) for a temporary help service firm or third party client to retaliate against a temporary laborer in a designated classification placement for:
(1) making a complaint to a temporary help service firm, to a third party client, to a co-worker, to a community organization, before a public hearing, or to a State or federal agency that rights guaranteed under P.L.2023, c.10 (C.34:8D-1 et al.) have been violated;
(2) instituting any proceeding under or related to P.L.2023, c.10 (C.34:8D-1 et al.); or
(3) testifying or preparing to testify in an investigation or proceeding under P.L.2023, c.10 (C.34:8D-1 et al.).
c. When the commissioner finds that a temporary help service firm or third party client has violated this section, the commissioner is authorized to assess and collect administrative penalties, up to a maximum of $250 for a first violation and up to a maximum of $500 for each subsequent violation, specified in a schedule of penalties to be promulgated as a rule or regulation by the commissioner in accordance with the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.). When determining the amount of the penalty imposed because of a violation, the commissioner shall consider factors which include the history of previous violations by the employer, the seriousness of the violation, the good faith of the employer and the size of the employer’s business. No administrative penalty shall be levied pursuant to this section unless the commissioner provides the alleged violator with notification of the violation and of the amount of the penalty by certified mail and an opportunity to request a hearing before the commissioner or his designee within 15 days following the receipt of the notice. If a hearing is requested, the commissioner shall issue a final order upon such hearing and a finding that a violation has occurred. If no hearing is requested, the notice shall become a final order upon expiration of the 15-day period. Payment of the penalty is due when a final order is issued or when the notice becomes a final order. Any penalty imposed pursuant to this section may be recovered with costs in a summary proceeding commenced by the commissioner pursuant to “the penalty enforcement law” (N.J.S.2A:58-1 et seq.). Any sum collected as a fine or penalty pursuant to this section shall be applied toward enforcement and administration costs of the Department of Labor and Workforce Development.
34:8D-11. Aggrieved person, temporary help service firm, third party client violation, civil action, Superior Court
a. A person aggrieved by a violation of P.L.2023, c.10 (C.34:8D-1 et al.) by a temporary help service firm or a third party client may institute a civil action in the Superior Court, in the county where the alleged offense occurred or where any temporary laborer who is party to the action resides, without regard to exhaustion of any alternative administrative remedies provided in P.L.2023, c.10 (C.34:8D-1 et al.).
A temporary help service firm aggrieved by a violation of P.L.2023, c.10 (C.34:8D-1 et al.) by a third party client may institute a civil action in the Superior Court, in the county where the alleged offense occurred or where the temporary help service firm which is party to the action is located.
An action may be brought by one or more temporary laborers employed by the temporary help service firm for and on behalf of themselves and other temporary laborers similarly situated against the temporary help service firm or a third party client.
Notwithstanding any other relief provided under any other provision of law, a temporary laborer whose rights have been violated under P.L.2023, c.10 (C.34:8D-1 et al.) by a temporary help service firm or a third party client or a temporary help service firm whose rights have been violated under P.L.2023, c.10 (C.34:8D-1 et al.) by a third party client is entitled to the following relief:
(1) in the case of any violation of subsection a. of section 7 of P.L.2023, c.10 (C.34:8D-7) relating to any unlawful restrictions by a temporary help service firm on the right of a temporary laborer to accept a permanent position for any other employment or the right of a third party client to offer such employment to a temporary laborer, $50 for each temporary laborer affected by the temporary help service firm‘s policy, practice, or agreement and for each day that policy, practice, or agreement is in effect, plus actual damages;
(2) in the case of unlawful retaliation, the greater of all legal or equitable relief as may be appropriate or liquidated damages equal to $20,000 per incident of retaliation, at the selection of the aggrieved temporary laborer, and reinstatement, if appropriate; and
(3) attorney’s fees and costs.
b. The right of an aggrieved person to bring an action under this section terminates upon the passing of six years from the final date of employment by the temporary help service firm or the third party client or upon the passing of six years from the date of termination of the contract between the temporary help service firm and the third party client.
34:8D-12. Director, authority, suspend, revoke, refuse certification; notification
a. The director shall have the authority to deny, suspend, revoke, or refuse to renew any certification issued under section 8 of P.L.2023, c.10 (C.34:8D-8).
b. The director shall notify a temporary help service firm in writing by mail of the denial, suspension of, revocation of, or refusal to renew the certification and the reason for the denial, suspension of, revocation, or refusal. The Division of Consumer Affairs shall update the list of temporary help service firms certified to make designated classification placements on its website to reflect any denial, suspension, revocation or refusal to renew the certification of a temporary help service firm. The director may deny, suspend, revoke, or refuse to renew any certification issued under section 8 of P.L.2023, c.10 (C.34:8D-8) on the following grounds:
(1) The temporary help service firm is in default of payment of the certification fee required under section 8 of P.L.2023, c.10 (C.34:8D-8), fails to obtain or maintain or terminates the surety bond required under section 8 of P.L.2023, c.10 (C.34:8D-8), or otherwise fails to comply with the requirements under section 8 of P.L.2023, c.10 (C.34:8D-8);
(2) The certification required under section 8 of P.L.2023, c.10 (C.34:8D-8) was procured by fraud or false representation of fact;
(3) The temporary help service firm is subject to a court order entering final judgment for violations of P.L.2023, c.10 (C.34:8D-1 et al.) or for violations of P.L.1966, c.113 (C.34:11-56a et seq.) and the judgment was not satisfied within 30 days of either:
(a) the expiration of the time for filing an appeal from the final judgment order; or
(b) if a timely appeal was made, the date of the final resolution of that appeal and any subsequent appeals resulting in final judicial affirmation of the findings of a violation;
(4) The temporary help service firm has failed to comply with the terms of an administrative penalty or final order, within 30 days of issuance of that penalty or order, issued by the commissioner or the director pursuant to P.L.2023, c.10 (C.34:8D-1 et al.) or issued by the commissioner pursuant to P.L.1966, c.113 (C.34:11-56a et seq.) for which all appeal rights have been exhausted;
(5) The temporary help service firm has been determined through a separate enforcement process to be operating in violation of any law; or
(6) The temporary help service firm has committed one or more violations of P.L.2023, c.10 (C.34:8D-1 et al.), that have jeopardized the public health, safety, or welfare, or that call into question the firm’s ability to operate as a temporary help service firm in compliance with P.L.2023, c.10 (C.34:8D-1 et al.).
c. If a temporary help service firm’s application for initial registration or renewal is denied pursuant to section 14 of P.L.1981, c.1 (C.56:8-1.1) or any rules or regulations promulgated thereunder, or if a temporary help service firm’s registration is suspended, revoked, or not renewed for any reason, the director shall take the same action against the temporary help service firm with respect to an application or a certification under section 8 of P.L.2023, c.10 (C.34:8D-8). If a person or entity that holds or seeks a license or registration that authorizes the person or entity to provide temporary help services pursuant to any other law, rule, or regulation is denied such license or registration, or if such license or registration is suspended, revoked, or not renewed for any reason, the director shall take the same action against the temporary help service firm with respect to an application or a certification under section 8 of P.L.2023, c.10 (C.34:8D-8).
d. The director shall not deny, revoke, or refuse to renew a certification under this section except upon reasonable notice to, and opportunity to be heard by, the applicant or certification-holder. The director may, if the director finds it to be in the public interest, suspend a certification for any period of time that the director determines to be proper, or assess a penalty in lieu of suspension, or both, and may issue a new certification, notwithstanding the revocation of a prior certification, provided the director finds the applicant to have become entitled to a new certification.
34:8D-13. Rights, obligations
The rights and obligations established by P.L.2023, c.10 (C.34:8D-1 et al.) shall be in addition to those set forth in P.L.1960, c.39 (C.56:8-1 et seq.) and any rules or regulations promulgated thereunder; P.L.1989, c.331 (C.34:8-43 et seq.) and any rules or regulations promulgated thereunder; and any other applicable law, rule, or regulation.
CHAPTER 72. TEMPORARY LABORERS
SUBCHAPTER 1. GENERAL PROVISIONS
12:72-1.1 Purpose and scope
(a) The purpose of this chapter is to implement N.J.S.A. 34:8D-1 through 7, and 10 (the Act), which set forth workplace protections, as well as temporary help service firm and third-party client responsibilities, that are enforced by the Department of Labor and Workforce Development for the benefit of temporary laborers.
(b) This chapter is applicable to each temporary help service firm that is located, operates, or transacts business, within New Jersey.
(c) This chapter is applicable to each temporary laborer who is employed by a temporary help service firm referred to at (b) above, who also either has been assigned by the temporary help service firm to work in a designated classification placement:
1. Within New Jersey, or
2. Outside of New Jersey, but who has his or her primary residence in New Jersey.
(d) This chapter applies to each third-party client that contracts with a temporary help service firm referred to at (b) above, for the services of a temporary laborer referred to at (c) above.
12:72-1.2 Retaliation prohibited
(a) No temporary help service firm or third-party client, or agent of a temporary help service firm or third-party client, shall retaliate through discharge or in any other manner against a temporary laborer for exercising any rights granted the temporary laborer pursuant to N.J.S.A. 34:8D-1 et seq., or this chapter, including, but not limited to, the following:
1. Making a complaint to a temporary help service firm, to a third-party client, to a co-worker, to a community organization, before a public hearing, or to a State or Federal agency whose rights guaranteed pursuant to N.J.S.A. 34:8D-1 et seq., have been violated;
2. Instituting any proceeding pursuant, or related, to N.J.S.A. 34:8D-1 et seq.; and
3. Testifying, or preparing to testify, in an investigation or proceeding pursuant to N.J.S.A. 34:8D-1 et seq.
(b) When within 90 days of the temporary laborer's exercise of rights protected pursuant to N.J.S.A. 34:8D-1 et seq., a temporary help service firm either terminates the temporary laborer's employment or takes any disciplinary action against the temporary laborer, there shall arise a rebuttable presumption that the termination or other disciplinary action was in retaliation for the temporary laborer's exercise of rights.
12:72-1.3 Administrative penalties
(a) When the Commissioner finds that a temporary help service firm has violated any requirement(s) set forth at N.J.S.A. 34:8D-3 or N.J.A.C. 12:72-3, the Commissioner is authorized to assess and collect an administrative penalty against the temporary help service firm for each violation in an amount not less than $ 500.00 and not to exceed $ 1,000.
(b) When the Commissioner finds that a third-party client has violated any requirement(s) set forth at N.J.S.A. 34:8D-4.a(2) or N.J.A.C. 12:72-4.2, the Commissioner is authorized to assess and collect an administrative penalty against the third-party client for each violation in an amount not to exceed $ 500.00.
1. The third-party client's failure to remit accurate time records to the temporary help service firm as required at N.J.S.A. 34:8D-4.a(2) or N.J.A.C. 12:72-4.2 shall not constitute a violation of that law or that rule and shall not be the basis for the assessment or collection of an administrative penalty against the third-party client when the third-party client has been precluded from submitting those time records for reasons beyond its control.
(c) When the Commissioner finds that a temporary help service firm has violated the requirements set forth at N.J.S.A. 34:8D-5.d(2) or N.J.A.C. 12:72-4.1(b), that it obtain, and keep on file, documentation that any provider of transportation to temporary laborers with which the temporary help service firm contracts or to which the temporary help service firm makes referrals, is in compliance with N.J.S.A. 34:8D-5.e, f, and g, the Commissioner is authorized to assess and collect an administrative penalty against the temporary help service firm for each violation in an amount not to exceed $ 500.00.
(d) When the Commissioner finds that a temporary help service firm has violated any requirement(s) set forth at N.J.S.A. 34:8D-5 (with the exception of N.J.S.A. 34:8D-5.d(2)), or N.J.A.C. 12:72-5, the Commissioner is authorized to assess and collect an administrative penalty against the temporary help service firm for each violation in an amount not to exceed $ 5,000.
(e) When the Commissioner finds that a temporary help service firm has violated any requirement(s) set forth at N.J.S.A. 34:8D-6 or N.J.A.C. 12:72-8 or 9, the Commissioner is authorized to assess and collect an administrative penalty against the temporary help service firm for each violation in an amount not to exceed $ 500.00.
(f) When the Commissioner finds that a third-party client has violated the work verification requirement set forth at N.J.S.A. 34:8D-6.a or N.J.A.C. 12:72-9.2, the Commissioner is authorized to assess and collect an administrative penalty against the third-party client for each violation in the following amounts:
1. First violation--not to exceed $ 500.00; and
2. Second and subsequent violations--not to exceed $ 2,500.
(g) When the Commissioner finds that a temporary help service firm has violated any requirement(s) set forth at N.J.S.A. 34:8D-7 or N.J.A.C. 12:72-6.1, 6.2, 7.1, or 7.2, the Commissioner is authorized to assess and collect an administrative penalty against the temporary help service firm for each violation in an amount not to exceed $ 5,000.
1. If a third-party client leases or contracts with a temporary help service firm for the services of a temporary laborer, the third-party client and the temporary help service firm shall be jointly and severally responsible for a violation of the requirements set forth at N.J.S.A. 34:8D-7 or N.J.A.C. 12:72-6.1, 6.2, 7.1, or 7.2, including, with respect to any administrative penalty assessed by the Commissioner pursuant to this subsection for any such violation(s).
(h) When the Commissioner finds that a temporary help service firm or third-party client has violated any requirement(s) set forth at N.J.S.A. 34:8D-10 or N.J.A.C. 12:72-1.2, the Commissioner is authorized to assess and collect an administrative penalty against the temporary help service firm or the third-party client, as appropriate, for each violation in the following amounts:
1. First violation--not to exceed $ 250.00; and
"Designated classification placement" means an assignment of a temporary laborer by a temporary help service firm to perform work in any of the following occupational categories as designated by the Bureau of Labor Statistics of the United States Department of Labor:
33-9099 Other Protective Service Workers;
35-0000 Food Preparation and Serving Related Occupations;
37-0000 Building and Grounds Cleaning and Maintenance Occupations;
39-0000 Personal Care and Service Occupations;
47-2060 Construction Laborers;
47-3019 Helpers, Construction Trades;
49-0000 Installation, Maintenance, and Repair Occupations;
51-0000 Production Occupations; and
53-0000 Transportation and Material Moving Occupations.
2. Second and subsequent violations--not to exceed $ 500.00.
(i) In assessing an administrative penalty pursuant to this section, the Commissioner shall consider the following factors, where applicable, in determining what constitutes an appropriate penalty for the particular violation(s):
1. The seriousness of the violation(s);
2. The past history of violations by the temporary help service firm or third-party client, as appropriate;
3. The good faith of the temporary help service firm or third-party client, as appropriate;
4. The size of the temporary help service firm's or third-party client's business, as appropriate; and
5. Any other factors that the Commissioner deems appropriate in determining the penalty assessed.
12:72-1.4 Hearings
(a) When the Commissioner assesses an administrative penalty pursuant to N.J.A.C. 12:72-1.3, the temporary help service firm or third-party client against which the administrative penalty has been assessed shall have the right to a hearing pursuant to (b) below.
(b) No administrative penalty shall be levied pursuant to N.J.A.C. 12:72-1.3 unless the Commissioner provides the alleged violator with notification by certified mail of the violation and the amount of the penalty and an opportunity to request a formal hearing. A request for a formal hearing must be received within 15 business days following receipt of the notice. All hearings shall be held pursuant to the Administrative Procedures Act, N.J.S.A. 52:14B-1 et seq., and 52:14F-1 et seq., and the Uniform Administrative Procedures Rules, N.J.A.C. 1:1.
(c) All requests for hearings will be reviewed by the Division of Wage and Hour and Contract Compliance to determine if the dispute may be resolved at an informal settlement conference. If, following its review, the Division determines that an informal settlement conference is warranted, such conference will be scheduled. If a settlement cannot be reached, the case will be forwarded to the Office of Administrative law for a formal hearing.
(d) The Commissioner shall make the final decision of the Department.
(e) If the temporary help service firm or third-party client fails to request a formal hearing within 15 days following receipt of the notice, the notice shall become a final order.
(f) Appeals of the final decision of the Commissioner pursuant to (d) above or a final order pursuant to (e) above shall be made to the Appellate Division of the New Jersey Superior Court.
12:72-1.5 Processing of complaints
Any complaint filed with the Division that alleges a violation of the Act or this chapter shall be processed in the same manner as a complaint filed with the Division pursuant to the New Jersey Wage and Hour Law, N.J.S.A. 34:11-56a et seq., and the rules promulgated thereunder.
SUBCHAPTER 2. DEFINTIONS
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:
"Act" means N.J.S.A. 34:8D-1 through 7 and 10.
"Benefits" means employee fringe benefits, including, but not limited to, health insurance, life insurance, disability insurance, paid time off (including vacation, holidays, personal leave, and sick leave in excess of what is required by law), training, and pension. The term "benefits" does not include employee fringe benefits that an employer is required by law to provide to its employees (for example, earned sick leave pursuant to N.J.S.A. 34:11D-1 et seq.).
"Commissioner" means the Commissioner of the Department of Labor and Workforce Development, or their designee.
"Comparator employee" means an employee of the third-party client to which the temporary laborer is assigned, who is performing the same, or substantially, similar work to that of the temporary laborer at the time the temporary laborer is assigned to the third-party client, on a job the performance of which requires equal skill, effort, and responsibility to that of the temporary laborer, and which is performed under similar working conditions.
"Designated classification placement" means an assignment of a temporary laborer by a temporary help service firm to perform work in any of the following occupational categories as designated by the Bureau of Labor Statistics of the United States Department of Labor:
33-9099 Other Protective Service Workers;
35-0000 Food Preparation and Serving Related Occupations;
37-0000 Building and Grounds Cleaning and Maintenance Occupations;
39-0000 Personal Care and Service Occupations;
47-2060 Construction Laborers;
47-3019 Helpers, Construction Trades;
49-0000 Installation, Maintenance, and Repair Occupations;
51-0000 Production Occupations; and
53-0000 Transportation and Material Moving Occupations.
"Division" means the Division of Wage and Hour and Contract Compliance.
"Employ" means to suffer or permit to work for compensation, including by means of ongoing contractual relationships in which the employer retains substantial direct or indirect control over the employee's employment opportunities or terms and conditions of employment.
"Employer" means any person or corporation, partnership, individual proprietorship, joint venture, firm, company, or other similar legal entity who engages the services of an employee and who pays the employee's wages, salary, or other compensation, or any person acting directly or indirectly in the interest of an employer in relation to an employee.
"Hours worked" means all of the time that the employee is required to be at the employee's place of work or on duty. Nothing at N.J.S.A. 34:8D-1 et seq., requires an employer to pay an employee for hours the employee is not required to be at the employee's place of work because of holidays, vacation, lunch hours, illness, and similar reasons.
"Person" means any natural person or their legal representative, partnership, corporation, company, trust, business entity, or association, and any agent, employee, salesman, partner, officer, director, member, stockholder, associate, trustee, or beneficiary of a trust thereof.
"Primary residence" means a dwelling where a person usually lives and does not include second homes. A person may only have one primary residence at any given time.
"Temporary help service firm" means any person or entity who operates a business that consists of employing individuals directly or indirectly for the purpose of assigning the employed individuals to assist the firm's customers in the handling of the customer's temporary, excess, or special workloads, and who, in addition to the payment of wages or salaries to the employed individuals, pays Federal Social Security taxes and State and Federal unemployment insurance; carries workers' compensation insurance as required by State law; and sustains responsibility for the actions of the employed individuals while they render services to the firm's customers. A temporary help service firm is required to comply with the provisions at N.J.S.A. 56:8-1 et seq.
"Temporary laborer" means a person who contracts for employment in a designated classification placement with a temporary help service firm. Temporary laborer does not include agricultural crew leaders who are registered pursuant to the Federal Migrant and Seasonal Agricultural Worker Protection Act, 29 U.S.C. §§ 1801 et seq., of N.J.S.A. 34:8A-7 et seq., or 34:9A-1 et seq.
"Third-party client" means any person who contracts with a temporary help service firm for obtaining temporary laborers in a designated classification placement. The term "third-party client" does not include the State or any office, department, division, bureau, board, commission, agency, or political subdivision thereof that utilizes the services of temporary help service firms.
SUBCHAPTER 2. REQUIRED NOTICES FROM TEMPORARY HELP SERVICE FIRM TO TEMPORARY LABORER
12:72-3.1 Assignment notification statement at dispatch
(a) At the time a temporary help service firm dispatches a temporary laborer to work in a designated classification placement, the temporary help service firm shall provide the temporary laborer with an assignment notification statement using the form made available at that time on the Department website at https://www.nj.gov/labor/wageandhour/.
1. The Commissioner will not accept applications from temporary help service firms for approval of other assignment notification statement forms.
2. The Commissioner, using the Department website in the manner described at (a) above, will publish a single approved assignment notification form, which the Commissioner may amend from time to time.
(b) The assignment notification statement at (a) above shall be provided by the temporary help service firm to the temporary laborer in English and in the language identified by the employee as the employee's primary language.
(c) The assignment notification statement at (a) above shall be provided by the temporary help service firm to the temporary laborer in a manner appropriate to whether the assignment is accepted at the temporary help service firm's office, or remotely by telephone, text, email, or other electronic exchange.
1. Where the assignment is accepted and dispatch to the assignment occurs remotely by text, email, or other electronic exchange, the temporary help service firm shall provide the temporary laborer with the assignment notification statement (and obtain acknowledgment of receipt of the assignment notification statement if the temporary help service firm intends to do so) by text, email, or other electronic exchange, and may not require the temporary laborer to travel to the office of the temporary help service firm solely to receive or acknowledge receipt of the assignment notification statement.
2. Where the assignment is accepted and dispatch to the assignment occurs remotely by telephone, the temporary help service firm shall provide the temporary laborer the option of receiving the assignment notification statement (and acknowledging receipt of the assignment notification statement if the temporary help service firm intends to do so) either:
i. By text, email, or other electronic exchange; or
ii. By traveling to the office of the temporary help service firm and receiving (and acknowledging receipt of) the assignment notification statement in-person.
3. Where the assignment is accepted and dispatch to the assignment occurs in-person at the office of the temporary help service firm, the temporary help service firm shall provide the temporary laborer with the assignment notification statement (and obtain acknowledgement of receipt of the assignment notification statement if the temporary help service firm intends to do so) in-person at the office of the temporary help service firm.
(d) When the temporary laborer is assigned to the same assignment for more than one day (a multi-day assignment), the temporary help service firm shall only be required to provide the assignment notification statement to the temporary laborer on the first day of the assignment and on any day that any of the terms listed on the assignment notification statement are changed.
(e) The assignment notification statement at (a) above shall contain the following:
1. The name of the temporary laborer;
2. The name, address, and telephone number of the following:
i. The temporary help service firm, or the firm's agent facilitating the placement;
ii. The temporary help service firm's workers' compensation carrier;
iii. The worksite employer or third-party client; and
iv. The Department of Labor and Workforce Development;
3. The name and nature of the work to be performed by the temporary laborer;
4. The wages offered to the temporary laborer;
5. The name and address of the assigned worksite of the temporary laborer;
6. The terms of transportation offered to the temporary laborer, if applicable;
7. A description of the position offered to the temporary laborer;
8. Whether the position offered to the temporary laborer will require any special clothing.
i. If the position offered to the temporary laborer will require any special clothing, a description of the special clothing required; and
ii. If the position offered to the temporary laborer will require any special clothing, whether it will be provided by the temporary help service firm at no cost to the temporary laborer; by the third-party client at no cost to the temporary laborer; or by the temporary laborer, and if by the temporary laborer, at what approximate cost to the temporary laborer;
9. Whether the position offered to the temporary laborer will require any protective equipment.
i. If the position offered to the temporary laborer will require any protective equipment, a description of the protective equipment is required; and
ii. If the position offered to the temporary laborer will require any protective equipment, whether it will be provided by the temporary help service firm at no cost to the temporary laborer; by the third-party client at no cost to the laborer; or by the temporary laborer, and if by the temporary laborer, at what approximate cost to the temporary laborer;
10. Whether the position offered to the temporary laborer will require any training.
i. If the position offered to the temporary laborer will require any training, a description of the training is required; and
ii. If the position offered to the temporary laborer will require any training, whether it will be provided by the temporary help service firm at no cost to the temporary laborer; by the third-party client at no cost to the laborer; or by the temporary laborer, and if by the temporary laborer, at what approximate cost to the temporary laborer;
11. Whether the position offered to the temporary laborer will require any supplies.
i. If the position offered to the temporary laborer will require any supplies, a description of the supplies required; and
ii. If the position offered to the temporary laborer will require any supplies, whether they will be provided by the temporary help service firm at no cost to the temporary laborer; by the third-party client at no cost to the laborer; or by the temporary laborer, and if by the temporary laborer, at what approximate cost to the temporary laborer;
12. Whether any meal(s) will be provided to the temporary laborer by the temporary help service firm or the third-party client; and, if yes, list the cost to the temporary laborer, if any;
13. Whether equipment (other than protective equipment) will be provided to the temporary laborer by the temporary help service firm or the third-party client; and, if yes, list the cost to the temporary laborer, if any;
14. Whether the position offered to the temporary laborer will require any license(s).
i. If the position offered to the temporary laborer does require any license(s), a description of the license(s) required; and
ii. For the purpose of this paragraph, the term "license" shall include any license or certification needed to perform any occupation or occupational activity;
15. Terms of the transportation offered to the temporary laborer, if applicable;
16. For muti-day assignments, the schedule;
17. The length of the assignment, if known; and
18. The amount of sick leave to which temporary laborers are entitled under the New Jersey Earned Sick Leave Law, N.J.S.A. 34:11D-1 et seq., and the terms of its use.
12:72-3.2 Notice of change on multi-day assignment
(a) For a multi-day assignment, when there is a change in the schedule, shift, or location, the temporary help service firm shall, when possible, provide notice 48 hours in advance of the change to the temporary laborer in a manner appropriate to whether the assignment was accepted at the temporary help service firm's office, or remotely by telephone, text, email, or other electronic exchange.
1. Where the assignment is accepted remotely by text, email, or other electronic exchange, the temporary help service firm shall provide the temporary laborer with notice of the change in schedule, shift, or location (and obtain acknowledgment of receipt of the notice of change if the temporary help service firm intends to do so) by text, email, or other electronic exchange, and may not require the temporary laborer to travel to the office of the temporary help service firm solely to receive notice of the change or acknowledge receipt of the notice of change.
2. Where the assignment is accepted by telephone or in-person at the office of the temporary help service firm, the temporary help service firm shall at the time of dispatch provide the temporary laborer the option of receiving notices of change in schedule, shift, or location (and acknowledging receipt of notices of change if the temporary help service firm intends to do so) either by:
i. Telephone;
ii. Text, email, or other electronic exchange; or
iii. Traveling to the office of the temporary help service firm.
(b) The temporary help service firm shall bear the burden of showing that it was not possible to provide the required notice.
(c) In the event that the Commissioner imposes an administrative penalty against a temporary help service firm pursuant to N.J.A.C. 12:72-1.2 for failure to provide the notice of change required pursuant to this section and the temporary help service firm requests a hearing pursuant to N.J.A.C. 12:72-1.3 to challenge the administrative penalty, any dispute concerning whether it was possible for the temporary help service firm to provide the notice of change required pursuant to this section shall be adjudicated during that hearing.
12:72-3.3 Notice of labor dispute
(a) No temporary help service firm shall send any temporary laborer to any designated classification placement where a strike, lockout, or other labor dispute exists without providing, at the time of dispatch, a statement, in writing, informing the temporary laborer of the labor dispute, and the temporary laborer's right to refuse the assignment.
(b) The requirement at (a) above shall apply only where the strike, lockout, or other labor dispute is occurring at the factory, establishment, or other premises to which the temporary laborer is being assigned by the temporary help service firm.
12:72-3.4 Confirmation of having sought work
(a) On any day that a temporary laborer who is employed by the temporary help service firm is not placed with a third-party client or otherwise contracted to work, the temporary help service firm shall provide to the temporary laborer, upon the temporary laborer's request, written confirmation that the temporary laborer sought work on that day.
(b) The written confirmation provided pursuant to (a) above shall be signed by an employee of the temporary help service firm, shall indicate the date and time that the written confirmation was received by the temporary laborer, and shall include the name of the temporary help service firm, and the name and address of the temporary laborer.
12:72-3.5 Translation of notices into languages other than English
(a) It shall be the responsibility of the temporary help service firm to make the assignment notification statement required pursuant to N.J.A.C. 12:72-3.1, the notices required pursuant to N.J.A.C. 12:72-3.2 and 3.3, and the written confirmation required pursuant to N.J.A.C. 12:72-3.4, available to temporary laborers in Spanish or in any other language that is generally understood in the locale of the temporary help service firm.
1. For the purpose of this section, the phrase "any other language that is generally understood in the locale of the temporary help service firm" means the language identified by the employee as the employee's primary language.
(b) The temporary help service firm may meet the requirement at (a) above either through its own employees or through the services of a vendor.
(c) Whether the Department makes the assignment notification statement required pursuant to N.J.A.C. 12:72-3.1, either of the notices required at N.J.A.C. 12:72-3.2 and 3.3, or the written confirmation required pursuant to N.J.A.C. 12:72-3.4, available to temporary help service firms in Spanish and/or other languages, this does not relieve the temporary help service firm of its responsibility pursuant to (a) above (and N.J.S.A. 34:8D-2(c)) to make the notices available to temporary laborers in Spanish and in any other language that is generally understood in the locale of the temporary help service firm.
SUBCHAPTER 4. RECORDKEEPING
12:72-4.1 Recordkeeping obligations; temporary help service firm
(a) A temporary help service firm shall keep the following records with regard to each assignment of a temporary laborer to work in a designated classification placement:
1. The name and address of the temporary laborer;
2. The name, address, and telephone number of the third-party client;
3. The date on which the temporary help service firm contracted with the third-party client for the services of the temporary laborer;
4. The name, address, and telephone number of each worksite to which the temporary laborer was sent by the temporary help service firm, and the date that the temporary laborer was sent to each worksite;
5. The name and nature of the work that was performed by the temporary laborer;
6. The number of hours that were worked by the temporary laborer;
7. The number of hours billed by the temporary help service firm to the third-party client for the temporary laborer's hours of work;
8. The temporary laborer's hourly rate of pay;
9. The name and title of the individual(s) at the third-party client who are responsible for the temporary laborer's assignment;
10. Any specific qualifications or attributes of a temporary laborer that were requested by the third-party client for the assignment;
11. Copies of the contract(s) with the third-party client for the assignment;
12. Copies of any invoice(s) provided by the temporary help service firm to the third-party client for payment in relation to the assignment;
13. Copies of the statements, notices, and written confirmations, provided by the temporary help service firm to the temporary laborer pursuant to N.J.A.C. 12:72-3.1 through 3.4;
14. A record of any deductions made from the temporary laborer's wages, including a description of each deduction and the amount of each deduction; and
15. Verification of the actual cost to the temporary help service firm or third-party client of any equipment or meal charged to the temporary laborer.
(b) The temporary help service firm shall obtain, and keep on file, documentation that any provider of transportation to a temporary laborer that the temporary help service firm makes referrals to or contracts with is in compliance with the requirements at N.J.S.A. 34:8D-5(e), (f), and (g).
(c) Each record listed at (a) and (b) above shall be maintained by the temporary help service firm for a period of six years from the date of the record's creation.
12:72-4.2 Recordkeeping and record remitting obligations; third-party client
(a) A third-party client shall keep the following records with regard to each temporary laborer assigned by a temporary help service firm to work in a designated classification placement for the third-party client:
1. The name, address, and telephone number of each worksite to which the temporary laborer was sent by the temporary help service firm, and the date that the temporary laborer was sent to each worksite;
2. The name and nature of the work that was performed by the temporary laborer;
3. The number of hours that were worked by the temporary laborer; and
4. The temporary laborer's hourly rate of pay.
(b) For each work week in which the temporary laborer performed work with the third-party client, the third-party client shall remit the records listed at (a) above to the temporary help service firm no later than seven business days after the last day of the work week.
1. For the purpose of this subsection, unless expressly set forth otherwise in an agreement between the temporary help service firm and the third-party client, the last day of each work week is the Sunday of that calendar week.
12:72-4.3 Inspection
(a) All records maintained by the temporary help service firm pursuant to N.J.A.C. 12:72-4.1 shall be open to inspection by the Commissioner during normal business hours.
(b) All records listed at N.J.A.C. 12:72-4.1(a), with the exception of the records listed at N.J.A.C. 12:72-4.1(a)10, 11, and 12, shall be made available by the temporary help service firm during normal business hours for copying by the temporary laborer or by an authorized representative of the temporary laborer at no cost to the temporary laborer or to the temporary laborer's authorized representative.
1. As a condition to obtaining access to and/or copying records pursuant to this subsection, the temporary laborer or the authorized representative of the temporary laborer may be required to submit a written request to the temporary help service firm.
2. Upon receipt of the written request for access and/or copying pursuant to (b)1 above, the temporary help service firm shall provide the temporary laborer or the authorized representative of the temporary laborer access to and the facilities to copy the requested records within five business days.
3. As a condition to an authorized representative of the temporary laborer obtaining access to and/or copying records pursuant to this subsection, the authorized representative must submit with the request a written authorization, signed by the temporary laborer, that expressly permits the authorized representative to review and copy the subject records.
4. The temporary help service firm shall make available to temporary laborers and their authorized representatives at the office of the temporary help service firm forms for use by temporary laborers and their authorized representatives in submitting requests to access and/or copy records pursuant to (b) above.
(c) The temporary help service firm shall not make any false, inaccurate, or incomplete entry into, or delete, any required information from any record required to be kept by the temporary help service firm pursuant to N.J.A.C. 12:72-4.1.
SUBCHAPTER 5. TRANSPORTATION
12:72-5.1 Requiring use prohibited
A temporary help service firm shall not require a temporary laborer to use transportation provided by the temporary help service firm or by another provider of transportation services.
12:72-5.2 Charging a fee prohibited
A temporary help service firm or a third-party client, or a contractor or agent of either, shall not charge a fee to a temporary laborer to transport the temporary laborer to or from the worksite.
12:72-5.3 Referrals
(a) A temporary help service firm shall not refer a temporary laborer to any person for transportation to or from a worksite, unless that person is either:
1. A public mass transportation system; or
2. Providing the transportation at no fee to the temporary laborer.
(b) For the purpose of this section, the following shall be considered a referral by the temporary help service firm:
1. Directing a temporary laborer to accept a specific carpool as a condition of work; or
2. Any mention or discussion of the cost of a carpool.
(c) For the purpose of this section, the following shall not be considered a referral by the temporary help service firm:
1. Informing a temporary laborer of the availability of a carpool driven by another temporary laborer.
12:72-5.4 Motor vehicle safety
(a) If a temporary help service firm provides transportation to a temporary laborer or refers a temporary laborer to any person for transportation to a worksite, the temporary help service firm shall not allow a motor vehicle to be used for the transporting of the temporary laborer if the temporary help service firm knows or should know that the motor vehicle used for the transportation of the temporary laborer is unsafe, or if any of the following circumstances exist:
1. The motor vehicle is not insured in accordance with the minimum insurance requirements set by the State of New Jersey;
2. The driver of the motor vehicle does not hold a valid license to operate motor vehicles in the correct classification; or
3. The motor vehicle does not have a seat and safety belt for each passenger.
(b) If the Department becomes aware of any of the circumstances set forth at (a)1, 2, or 3 above, with regard to a motor vehicle that is owned or operated by a temporary help service firm that makes designated classification placements or a third-party client of such a firm, or a contractor or agent of either, or a person to which a temporary help service firm refers a temporary laborer, which is used for the transportation of temporary laborers, it shall, in addition to or as an alternative to the assessment of a penalty against the temporary help service firm pursuant to N.J.A.C. 12:72-1.3(d), refer the matter to the appropriate law enforcement authority or regulatory agency.
12:72-5.5 Transportation back to point of hire
(a) Unless the temporary laborer requests otherwise, when a temporary laborer has been transported to a worksite, the temporary help service firm or a third-party client, or a contractor or agent of either, shall provide transportation back to the point of hire at the end of each workday.
1. For the purpose of this section, the term "point of hire" shall mean the location from which the temporary laborer was dispatched to perform work for the third-party client.
SUBCHAPTER 6. POST EMPLOYMENT RESTRICTIONS
12:72-6.1 Post employment restriction prohibited
(a) A temporary help service firm shall be prohibited from placing any restriction on a temporary laborer from either, accepting a permanent position with a third-party client to which the temporary help service firm has assigned the temporary laborer to perform work, or accepting any other permanent employment.
(b) A temporary help service firm shall be prohibited from placing any restriction on a third-party client from offering employment to a temporary laborer, except that the temporary help service firm may charge the third-party client a placement fee as set forth at N.J.A.C. 12:72-6.2.
12:72-6.2 Placement fee
(a) A temporary help service firm may charge a placement fee to a third-party client when the third-party client employs a temporary laborer who had been assigned by the temporary help service firm to perform work for the third-party client.
(b) The placement fee at (a) above shall not exceed the equivalent of the total daily commission rate that the temporary help service firm would have received over a 60-day period, reduced by the equivalent of the daily commission rate that the temporary help service firm would have received for each day the temporary laborer would have performed work for the temporary help service firm in the preceding 12 months.
(c) The following method shall be used to determine the maximum placement fee that may be charged by a temporary help service firm to a third-party client relative to the services of a given temporary laborer:
1. First, calculate the daily commission rate by subtracting the daily wages paid by the temporary help service firm to the temporary laborer for work performed on assignment to the third-party client and the daily cost to the temporary help service firm of benefits provided to the temporary laborer during the period of the temporary laborer's assignment with the third-party client, from the total daily amount paid by the third-party client to the temporary help service firm for the services of the temporary laborer;
2. Second, multiply the amount arrived at pursuant to (c)1 above by 43 (8.6 work weeks, multiplied by five workdays per week, for a total of 43 workdays), to arrive at the "equivalent of the total daily commission rate that the temporary help service firm would have received over a 60-day period";
3. Third, multiply the amount arrived at pursuant to (c)1 above by the number of days that the temporary laborer performed work for third-party clients of the temporary help service firm during the 12-month period immediately preceding the date upon which the temporary laborer accepted an offer of employment by the third-party client; and
4. Fourth, subtract the amount arrived at pursuant to (c)3 above from the amount arrived at pursuant to (c)2 above.
(d) If the amount arrived at pursuant to (c)4 above is a positive number, then that is the maximum placement fee that may be charged by the temporary help service firm to the third-party client. If the amount arrived at pursuant to (c)4 above is either zero or a negative number, then the maximum placement fee that may be charged by the temporary help service firm to the third-party client is zero.
(e) A temporary help service firm shall be prohibited from collecting a placement fee during any period of suspension, revocation, or non-renewal of its certification to make designated classification placements by the Director of the Division of Consumer Affairs.
SUBCHAPTER 7. PAY EQUITY
12:72-7.1 Temporary laborer pay equity requirement
Any temporary laborer assigned to work at a third-party client in a designated classification placement shall not be paid less than the average rate of pay and average cost of benefits, or the cash equivalent thereof, of employees of the third-party client performing the same or substantially similar work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions for the third-party client at the time the temporary laborer is assigned to work at the third-party client.
12:72-7.2 Calculation of the minimum hourly rate of pay that the temporary help service firm must pay the temporary laborer based on the average rate of pay and average cost of benefits of comparator employees of the third-party client
(a) At the time that the temporary help service firm contracts with the third-party client for the services of the temporary laborer, the third-party client shall provide to the temporary help service firm a listing of the hourly rate of pay and cost per hour of benefits for each employee of the third-party client who the third-party client determines would be a comparator employee.
(b) The temporary help service firm shall base its calculation of the average rate of pay and average cost of benefits for comparator employees of the third-party client, for the purpose of determining the temporary laborer's hourly rate of pay, on the information that it receives from the third-party client pursuant to (a) above.
(c) Where the third-party client pays a comparator employee on a salary basis, the hourly rate of pay for the comparator employee shall be calculated by dividing the annual salary paid to the comparator employee by 2,080 hours.
(d) To calculate the cost per hour of benefits, the annual cost to the employer of benefits shall be divided by 2,080 hours.
(e) In order for the temporary help service firm to determine pursuant to this section the appropriate minimum hourly rate of pay for the temporary laborer on a designated classification placement, the temporary help service firm shall use the following method:
1. Take the sum of the hourly rates of pay of the comparator employees identified by the third-party client and divide it by the number of comparator employees to arrive at the average hourly rate of pay of the third-party client's comparator employees;
2. Take the sum of the cost per hour of benefits of the comparator employees identified by the third-party client and divide it by the number of comparator employees to arrive at the average cost per hour of benefits of the third-party client's comparator employees;
3. Subtract the cost per hour of benefits provided by the temporary help service firm to the temporary laborer, from the sum of the average hourly rate of pay of the third-party client's comparator employees and the average cost per hour of benefits of the third-party client's comparator employees; and
4. The amount at (e)3 above is the minimum hourly rate of pay that the temporary help service firm shall pay the temporary laborer for all work performed on the designated classification placement.
(f) Under no circumstances should the calculation of the rate that the temporary help service firm must pay the temporary laborer pursuant to N.J.S.A. 34:8D-7.b or this subchapter ever result in the temporary laborer earning less than the minimum hourly wage rate required pursuant to N.J.S.A. 34:11-56a4 and N.J.A.C. 12:56.
12:72-7.3 Determining whether a temporary laborer and third-party client employee are performing substantially similar work
(a) The following principles should be applied when determining whether a temporary laborer and an employee of the third-party client are performing substantially similar work:
1. Substantially similar work should be viewed as a composite of skill, effort, and responsibility performed under similar working conditions;
2. Functions and duties need not be identical in order to be substantially similar;
3. Occasional, trivial, or minor differences in duties that only consume a minimal amount of the employee's time will not render the work dissimilar;
4. Job titles and job descriptions are relevant, but not dispositive, of whether two individuals are performing substantially similar work;
5. The determination should focus on an analysis of the actual job duties performed, not the specific person performing the work;
6. The analysis should be applied to a full work cycle, not just a snap shot of a particular time period or day;
7. Skill is measured by factors such as the experience, ability, education, and training required to perform a job;
8. Effort is the amount of physical or mental exertion needed to perform a job;
9. Responsibility is the degree of accountability and discretion required to perform a job;
10. The number of years of service (that is, seniority) of a particular employee is not relevant to the determination of whether two jobs are substantially similar, even where the third-party client's employee compensation system is seniority based; but rather, what is relevant is the number of years of experience that are required to perform a job.
i. For example, if the job to which the temporary laborer is being assigned with the third-party client requires five years of relevant experience and the job being performed by the prospective comparator employee of the third-party client requires five years of the same experience, this would be a factor mitigating in favor of a finding that the two jobs are substantially similar, notwithstanding that the comparator employee of the third-party client has worked for the third-party client for more than five years;
11. The third-party client's use of a merit system for the compensation of its employees is not relevant to the determination of whether two jobs are substantially similar; and
12. Working conditions, for the purpose of determining whether two jobs are being performed under similar working conditions, means the physical surroundings and hazards, but does not include job shifts.
SUBCHAPTER 8. CHARGES; PAYROLL DEDUCTIONS
12:72-8.1 Unreturned reusable equipment
A temporary help service firm may deduct from the wages of a temporary laborer the actual market value of unreturned reusable equipment that was provided to the temporary laborer by the temporary help service firm; provided that the temporary laborer authorizes the deduction, in writing, at the time the deduction is made.
12:72-8.2 Additional equipment, clothing, accessories, or other items that are not required by the nature of the work, that are made available for purchase
When a temporary help service firm makes available for purchase by a temporary laborer any equipment, clothing, accessories, or other items that are not required by the nature of the work, either by law, custom, or as a requirement of the third-party client, the temporary help service firm shall charge no more than the actual market value.
12:72-8.3 Meals
(a) A temporary help service firm shall not charge a temporary laborer for a meal not consumed by the temporary laborer and, if consumed, shall charge no more than the actual cost of the meal.
(b) A temporary help service firm shall not condition the employment of a temporary laborer on the purchase of a meal.
12:72-8.4 Consumer report, criminal background check, or drug test
No temporary help service firm or third-party client shall charge a temporary laborer for the expense of conducting a consumer report, as that term is defined in the Fair Credit Reporting Act (15 U.S.C. §§ 1681 et seq.), a criminal background check, or a drug test.
SUBCHAPTER 9. OTHER TEMPORARY HELP SERVICE FIRM RESPONSIBILITIES, THIRD-PARTY CLIENT RESPONSIBILITIES, AND TEMPORARY LABORER PROTECTIONS
12:72-9.1 Detailed itemized statement
(a) At the time the temporary help service firm pays the temporary laborer their wages, the temporary help service firm shall provide the temporary laborer with a detailed itemized statement, either on the temporary laborer's paycheck stub, or using the form made available at that time on the Department's website at https://www.nj.gov/labor/wageandhour/, listing the following:
1. The name, address, and telephone number of each third-party client at which the temporary laborer worked during that pay period.
i. If the information in this paragraph is provided on the temporary laborer's paycheck stub, the temporary help service firm may use a code for each third-party client, so long as the temporary help service firm also makes available to each temporary laborer at that time a key containing the name, address, and telephone number for each coded third-party client;
2. The number of hours worked by the temporary laborer at each third-party client on each day during that pay period.
i. If the temporary laborer is assigned to work at the same worksite of the same third-party client for multiple days in the same work week, the temporary help service firm may provide the temporary laborer with the total hours worked at the third-party client's worksite during the pay period (as opposed to a daily accounting), so long as the first and last day of that work are identified;
3. The rate of pay for each hour worked by the temporary laborer during that pay period, including any premium rate or bonus;
4. The total pay period earnings;
5. The total amount of each deduction made from the temporary laborer's wages made by the temporary help service firm, and the purpose for which each deduction was made, including for the temporary laborer's food, equipment, withheld income tax, withheld Social Security deductions, withheld contributions to the State Unemployment Compensation Trust Fund, and the State Disability Benefits Trust Fund, and every other deduction;
6. The current maximum amount of a placement fee pursuant to N.J.A.C. 12:72-6.2(c), which the temporary help service firm may charge to the third-party client to directly hire the temporary laborer;
7. The total amount charged by the temporary help service firm to the third-party client for the services of the temporary laborer during that pay period; and
8. Total cost to the temporary help service firm of benefits provided to the temporary laborer during that pay period.
12:72-9.2 Work verification; third-party client
(a) For the temporary laborer who is assigned to work a single day (as opposed to a multi-day assignment), the third-party client shall, at the end of the work day, provide the temporary laborer with a work verification, using the form made available at that time on the Department's website at https://www.nj.gov/labor/wageandhour/.
(b) The work verification provided to the temporary laborer pursuant to (a) above shall contain the following:
1. The date;
2. The name of the temporary laborer;
3. The name and address of the work location; and
4. The start time, end time, and total hours worked on that day.
12:72-9.3 Annual earnings summary
(a) Within a reasonable time after the preceding calendar year, but in no case later than February 1 of the current calendar year, a temporary help service firm shall provide a temporary laborer with an annual earnings summary for the preceding calendar year.
(b) At the time the temporary help service firm pays the temporary laborer their wages, the temporary help service firm shall individually provide the temporary laborer with notice of the availability of the annual earnings summary.
1. As an alternative to the individual notice required pursuant to this subsection, the temporary help service firm may post notice of the availability of the annual earnings summary in a conspicuous place in the public reception area of the temporary help service firm.
12:72-9.4 Holding of daily wages in favor of bi-weekly payments
(a) At the request of a temporary laborer, a temporary help service firm shall hold the daily wages of the temporary laborer and provide the temporary laborer with bi-weekly payments.
(b) The bi-weekly payment pursuant to (a) above shall be made by the temporary help service firm in accordance with the Department's rule regarding time and mode of wage payments at N.J.A.C. 12:55-2.4.
(c) A temporary help service firm that makes daily wage payments shall provide written notification to all temporary laborers of the right to request bi-weekly payments, rather than daily payments.
(d) The notification required pursuant to (c) above may be provided by the temporary help service firm by conspicuously posting the notice at the location where the daily wages are received by the temporary laborers.
12:72-9.5 Time and mode of wage payments; check cashing fees prohibited
(a) With regard to all payment of wages by a temporary help service firm to a temporary laborer, the temporary help service firm shall adhere to the requirements at N.J.A.C. 12:55-2.4 for employers regarding time and mode of wage payments, which includes, but is not limited to, the following requirements:
1. When a wage payment occurs by check, it shall be a check drawn on a financial institution where suitable arrangements are made for the cashing of such checks by employees without difficulty and for the full amount for which they were drawn; and
2. When a fee is charged for the cashing of a payroll check at the banking institution on which the check is drawn, the employer shall bear the burden of the fee.
12:72-9.6 Wage rate
For work performed by a temporary laborer in the position described on the assignment notification statement that is provided to the temporary laborer by the temporary help service firm at the time of dispatch pursuant to N.J.A.C. 12:72-3.1, the temporary help service firm shall pay the temporary laborer no less than the "wages offered" that are also indicated on the assignment notification statement.
12:72-9.7 Non-utilization; change in worksite
(a) When a temporary help service firm has contracted with a third-party client for a temporary laborer to perform work at a worksite of the third-party client and the temporary laborer is not utilized (that is, the temporary laborer does not work), the temporary help service firm shall pay the temporary laborer a minimum of four hours of pay at the agreed upon rate of pay.
(b) When a temporary help service firm has contracted with a third-party client for a temporary laborer to perform work at a worksite of the third-party client, but then contracts with that third-party client or another third-party client for the temporary laborer to perform work at a different worksite during the same shift, the temporary help service firm shall, in addition to any amounts due for work performed by the temporary laborer at the new worksite, pay the temporary laborer a minimum of two hours of pay at the agreed upon rate of pay for the work that would have been performed at the original worksite.
SUBCHAPTER 10. THIRD-PARTY PAYMENTS TO TEMPORARY HELP SERVICE FIRM
12:72-10.1 Third-party client payments to temporary help service firm for wages and related payroll taxes
A third-party client is required to reimburse a temporary help service firm wages and related payroll taxes for services performed for the third-party client by a temporary laborer, according to payment terms outlined on invoices, service agreements, or stated terms provided by the temporary help service firm.
12:72-10.2 Complaints to the Commissioner
(a) A temporary help service firm may file a complaint with the Commissioner that a third-party client has violated N.J.A.C. 12:72-10.1.
(b) A complaint pursuant to (a) above shall be filed with the Division either, in writing, or through any online complaint process made available by the Division.
(c) When a complaint pursuant to (a) above has been filed by a temporary help service firm, the Division shall review the payroll and accounting records of the temporary help service firm and the third-party client for the period in which the violation is alleged to have occurred to determine if wages and payroll taxes were paid to the temporary help service firm and that the temporary laborer has been paid the wages owed.
(d) At the conclusion of an investigation pursuant to (c) above, the Division may issue a determination that a third-party client has failed to pay wages or payroll taxes to the temporary help service firm. A temporary help service may seek a remedy for the third-party client's failure to pay wages or payroll taxes to the temporary help service firm in a court of competent jurisdiction.
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