Federal Appeals Court Upholds New Jersey Anti-Staffing Law

Industry challenge to benefits-matching requirement still alive

In a ruling that is disappointing, but not entirely unexpected, the U.S. Third Circuit Court of Appeals has rejected an appeal by industry groups seeking to overturn New Jersey's "Temporary Worker's Bill of Rights." This law requires staffing firms to pay temporary workers in certain industrial labor categories the same wage and benefit rates paid to the full-time workers of the client. The full opinion is attached below. You can read my stories about the New Jersey law and the lower court litigation here:

COURT RULES THAT NEW JERSEY CAN WIPE OUT INDUSTRIAL STAFFING IN THE STATE

Earlier this year I wrote a story entitled: “New Jersey Declares War on Industrial Staffing.” Well, it looks like New Jersey just won the war.

Staffing Legal NewsBill Josey

New Jersey Declares War on Blue Collar Staffing

“New Jersey Temp Worker Bill of Rights” creates extraordinary regulatory burdens on staffing firms and clients.

Staffing Legal NewsBill Josey

Still alive is an industry challenge to the section of the law that requires covered staffing firms to match the benefits offered by the clients. A similar requirement in Illinois was struck down recently. I wrote about it here:

ASA-Supported Staffing Agencies Overturn Benefit Matching Requirement in Illinois

In a significant, albeit partial, victory, the ASA affiliated Staffing Services Association of Illinois and several staffing firms have won a federal court injunction halting the enforcement of Illinois’ recently imposed requirement that industrial staffing firms match their clients’ benefits.

Staffing Legal NewsBill Josey

The law's full impacts have yet to be fully realized, but now that the appellate court has ruled, it is anticipated that larger industrial staffing firms may leave the state, and some smaller ones may have to close their doors. Staffing Legal News will be following the story. Here is the Third Circuit's opinion: