Bill Introduced to Amend the New Jersey Employee Leasing Company Statute

On June 28, the Senate introduced a bill (S2164) amending New Jersey’s existing statute (N.J.S.A. 34:8-68) pertaining to employee leasing companies. The current statute sets forth the various responsibilities and obligations for an employee leasing company and the provisions that must be included in an employee leasing agreement. Among other things, the proposed amendments: (1) establish a limited registration process for employee leasing companies domiciled and licensed in another state; (2) clarify that an employee leasing agreement shall not affect, modify or amend any contractual relationship or restrictive covenant between a covered employee and a client company, and that an employee leasing company shall have no responsibility or liability stemming from such a contractual relationship; (3) clarify that when a client company requires a covered employee to be licensed, registered, certified or undergo a criminal background check, that the covered employee is deemed solely an employee of the client company, and not an employee of the employee leasing company, for those purposes; and (4) provide that a client company, not an employee leasing company, is responsible for workplace safety issues and policies.