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The State of New Jersey Continues to Enforce Temporary Help / Employment Agency Registration

Posted on May 02, 2024

Since 1951, the state of New Jersey has required that any employment agency, headhunter, consulting firm or home health agency operating as a business in the state register with the Division of Consumer Affairs. Over the years, the state has not actively enforced compliance or registration to the thousands of firms that conduct operations in New Jersey. Not until the New Jersey Temporary Worker Bill of Rights was enacted in late 2023, has the state fully ramped up its audit of staffing firms and mandated the enforcement of employer registration.

According to the Division of Consumer Affairs, “any person who operates a business that employs individuals directly or indirectly for the purpose of assigning the employed individual to assist the firm’s customers in handling work loads” is required to register as a licensed temporary help service firm. In doing so, the state is monitoring New Jersey temporary employment agency unfair trade practices.

A company, hospital, or medical practice that works with an employment agency should verify that its temporary help employment agency vendor or partner is registered with the state. A client that works with only a registered staffing firm has a measure of protection and compliance. The state requires employment agency compliance with regards to insurance, financial charters/ownership, as well as legal documentation. It also monitors company complaints and violations.

Any company can verify if a temporary help employment agency is registered with the state of New Jersey by clicking on the New Jersey Division of Consumer Affairs Search Tool.

Temporary employment agencies that fail to register and comply with the state face the following potential violations and penalties.

  • Being requried to refund payments made from clients
  • Being required to pay reasonalbe attoreney fees for any ligitaion
  • Being required to pay a $2,000 penalty for the intiail violation and a $5,000 penalty for every subseuqent fiolation
  • The revocation of a New Jersey corporate charter

Since people are the most important asset to any organization, it’s important to partner with a stable and licensed employment agency that provides its own employees according to state guidelines. Why risk working with a temporary employment agency where its greatest assets can be taken away?