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110 F.4th 201
3d Cir.
2024
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Background

  • The New Jersey Staffing Alliance and related organizations sought to preliminarily enjoin the enforcement of New Jersey’s 2023 Temporary Workers’ Bill of Rights (the Act), which imposes wage and benefits requirements for temporary workers.
  • Section 7(b) of the Act mandates that staffing firms pay temporary workers at least the average pay and benefits of comparable permanent employees at the client company.
  • Plaintiffs challenged the law as violating the dormant Commerce Clause, as unconstitutionally vague, and as an unreasonable exercise of state police power.
  • The District Court found the plaintiffs would suffer irreparable harm but denied the injunction, citing low likelihood of success on the merits of the legal arguments.
  • On interlocutory appeal, the Third Circuit evaluated whether the District Court erred in denying the preliminary injunction.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Dormant Commerce Clause The Act imposes protectionist burdens on out-of-state businesses/customers. The Act applies equally and is not protectionist. No discrimination; claim likely fails.
Vagueness of Section 7(b) Terms like "benefits" and "substantially similar work" are undefined and vague. Terms mirror federal/state law; provide adequate notice to regulated. Act is not impermissibly vague.
Unreasonable Exercise of Police Power The Act’s requirements are irrational and overly burdensome. Act rationally furthers worker protection, a legitimate interest. The Act is rational; claim likely fails.
Preliminary Injunction Irreparable economic harm necessitates immediate relief. No likelihood of success on the merits. Injunction properly denied.

Key Cases Cited

  • National Pork Producers Council v. Ross, 598 U.S. 356 (dormant Commerce Clause centers on anti-protectionism, not per se extraterritoriality)
  • Baldwin v. G. A. F. Seelig, Inc., 294 U.S. 511 (dormant Commerce Clause prohibits state price controls favoring in-state commerce)
  • Brown-Forman Distillers Corp. v. N.Y. State Liquor Auth., 476 U.S. 573 (state price affirmation laws cannot favor local consumers)
  • Healy v. Beer Inst., 491 U.S. 324 (state law with extraterritorial price effects found invalid where protectionist)
  • Corning Glass Works v. Brennan, 417 U.S. 188 ("skill, effort, and responsibility" language in equal pay law provides meaningful standard)
  • City of Cleburne v. Cleburne Living Ctr., 473 U.S. 432 (rational basis review applies unless a suspect class or fundamental right is present)
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Case Details

Case Name: New Jersey Staffing Alliance v. Cari Fais
Court Name: Court of Appeals for the Third Circuit
Date Published: Jul 24, 2024
Citations: 110 F.4th 201; 23-2419
Docket Number: 23-2419
Court Abbreviation: 3d Cir.
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