We previously reported that the New Jersey Department of Labor and Workforce Development (“NJDOL”) issued proposed regulations to implement New Jersey’s Temporary Workers’ Bill of Rights (the “Act”), including its pay equity requirement. On September 16, 2024, the NJDOL adopted N.J.A.C. 12:72 (the “Regulations”) implementing sections 1 through 7, and 10 of the Act, pertaining to “workplace protections, as well as temporary help service firm and third-party client responsibilities.” The key provisions are summarized below.
Pay Equity Requirement
Significantly, the Regulations provide a formula for calculating the minimum hourly rate of pay for temporary workers, which under the Act is determined by “the average rate of pay and average cost of benefits” of comparator employees, i.e., employees of the third-party client who perform:
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.
By Evan Rosen
Hospitality employers continue to get hit with class action lawsuits alleging that they are unlawfully taking the tip credit for their employees. Under federal law, and the law of most states, an employer may pay less than the minimum wage to any employee who regularly and customarily receives tips. The difference between the minimum wage and the hourly wage rate is called the "tip credit."
This compensation system, when administered correctly, has the advantage of saving employers a significant sum of money. But employers must implement ...
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