As America is Heading for a Recession, Temporary Workers are Vital for Companies to Stay Afloat. If This NJ Bill Passes Monday, Employers will Have a Difficult Time Getting Temporary Workers

EAST BRUNSWICK, NJ – August 4, 2022 – Many economists around the nation are predicting the United States is heading towards a recession. As companies face pay cuts and layoffs, temporary workers are often brought in to keep company headcount and employee tax low. New Jersey lawmakers are now considering a bill to make it hard for companies to hire these temporary workers, for staffing agencies to help companies find this work, and for employees to have temporary jobs.

In New Jersey alone, over 90,000 temporary workers assist employers each week throughout the state, according to the American Staffing Association. Nearly a million temporary workers each year bring an average of $5.3 billion dollars to the state’s economy. Senate Bill S-511 will drastically cut these numbers.

A majority of temporary workers in the state are individuals that rely on temporary jobs to help provide for their families. The New Jersey Staffing Alliance is concerned with the amount of families that will be facing job losses with this bill being passed as jobs are already in jeopardy. With rising inflation, unaffordable housing and student loan debt eating at the average resident’s dollar, temporary jobs have been proven to help these workers find good employment with fair treatment and wages.

“If we are truly heading towards a recession like economists predict, now is not the time to limit the capabilities of temporary workers,” as per the executive leadership of the New Jersey Staffing Alliance. “Temporary workers are vital to an economy experiencing a recession. We already see companies putting hiring freezes in place and laying off workers to keep head count down. This bill being considered would put companies, staffing agencies and temporary workers’ jobs in jeopardy.”

The way the bill stands now, there are many unreasonable expectations for administrative purposes being thrown onto companies and staffing agencies. For example, subjecting the staffing agencies revising their payroll cycles for the sake of a single employee’s requests when no other workforce in the state needs to do so, having applicants communicate with staffing agencies only in person, and not by other means, and requiring every temporary employee to be multilingual when each industry otherwise allows employers to choose which languages their staff possesses and uses. Sections of the bill also conflict with provisions set to protect everyone involved from the New Jersey Department of Labor and Workforce Development and the New Jersey Department of Community Affairs.

“Some of the things being considered in this bill could cause companies to forgo the benefits of utilizing temporary workers, putting nearly one million employees and a multi-billion dollar industry in the state at risk,” stated the executive leadership of the New Jersey Staffing Alliance. “Many sections of this bill put unnecessary burden onto staffing agencies, while other industries in the state do not have to adhere to these types of guidelines. The over 1,000 staffing agencies in the Garden State deserve better than this.”

Temporary employees currently staff some of the largest industries in the state. Most workers are working in the transportation, distributions and logistics operations which in 2020 employed 401,005 workers or 12.5% of the state’s private sector workers. Not only would over half a million jobs be affected by this bill, many companies will forgo temporary staffing due to the increased legal liability Bill S-511 creates, leading to increased job loss during a time of economic strain.

The New Jersey Staffing Alliance’s mission is to be the advocate for the success and growth of the New Jersey staffing industry through leadership in legislation, education, ethics and professional business practices. Ensuring that the staffing industry continues to provide valuable and important employment opportunities to New Jersey citizens and their families, particularly the lower skilled and entry level candidates who have the greatest challenge in finding acceptable employment is a priority. Senate Bill 511 does not provide that.

Senate Bill S-511 is the only bill being heard by the New Jersey Senate. The bill is scheduled for a vote at 1:00 p.m. on Monday, August 8, 2022 at the New Jersey Statehouse Annex.

The New Jersey Staffing Alliance encourages all temporary workers, companies and staffing agencies to contact their legislator to express their concerns over this bill by visiting www.protectnjjobs.com.