In an effort to advance pay equity, New Jersey Gov. Phil Murphy signed the Temporary Workers' Bill of Rights into law on Feb. 6. The bill's "equal-pay-equal-benefit" provision requires that temporary workers be paid the same average compensation rate and benefits (or cash equivalent) that is paid to permanent employees.
The new law will have significant implications for New Jersey employers and staffing agencies that place temporary workers.
It offers additional compensation, benefits and protections for temporary workers, with the cost and burden of compliance placed on employers and staffing agencies that place temporary workers.
Murphy commented that the bill "establishes necessary guidelines for temporary help service firms and third-party clients to ensure that these workers are afforded basic protections and treated with the dignity they deserve."
The implications of the law are significant. It requires that temporary workers be paid at least the same average rate of compensation and equivalent benefits as the third-party client's permanent employees performing similar tasks that require equal skill, effort and responsibility. This "equal-pay-equal-benefit" provision will likely make it very challenging for employers to calculate and provide payment for the average costs of benefits for temporary workers.
Employers with multiple benefit plans will need to determine which category of permanent employees is most analogous to a particular temporary worker's position in...
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