New Jersey Administrative Code
Title 12 - LABOR AND WORKFORCE DEVELOPMENT
Chapter 72 - TEMPORARY LABORERS
Subchapter 6 - POST EMPLOYMENT RESTRICTIONS
Section 12:72-6.2 - Placement fee

Universal Citation: NJ Admin Code 12:72-6.2

Current through Register Vol. 56, No. 18, September 16, 2024

(a) A temporary help service firm may charge a placement fee to a third-party client when the third-party client employs a temporary laborer who had been assigned by the temporary help service firm to perform work for the third-party client.

(b) The placement fee at (a) above shall not exceed the equivalent of the total daily commission rate that the temporary help service firm would have received over a 60-day period, reduced by the equivalent of the daily commission rate that the temporary help service firm would have received for each day the temporary laborer would have performed work for the temporary help service firm in the preceding 12 months.

(c) The following method shall be used to determine the maximum placement fee that may be charged by a temporary help service firm to a third-party client relative to the services of a given temporary laborer:

1. First, calculate the daily commission rate by subtracting the daily wages paid by the temporary help service firm to the temporary laborer for work performed on assignment to the third-party client and the daily cost to the temporary help service firm of benefits provided to the temporary laborer during the period of the temporary laborer's assignment with the third-party client, from the total daily amount paid by the third-party client to the temporary help service firm for the services of the temporary laborer;

2. Second, multiply the amount arrived at pursuant to (c)1 above by 43 (8.6 work weeks, multiplied by five workdays per week, for a total of 43 workdays), to arrive at the "equivalent of the total daily commission rate that the temporary help service firm would have received over a 60-day period";

3. Third, multiply the amount arrived at pursuant to (c)1 above by the number of days that the temporary laborer performed work for third-party clients of the temporary help service firm during the 12-month period immediately preceding the date upon which the temporary laborer accepted an offer of employment by the third-party client; and

4. Fourth, subtract the amount arrived at pursuant to (c)3 above from the amount arrived at pursuant to (c)2 above.

(d) If the amount arrived at pursuant to (c)4 above is a positive number, then that is the maximum placement fee that may be charged by the temporary help service firm to the third-party client. If the amount arrived at pursuant to (c)4 above is either zero or a negative number, then the maximum placement fee that may be charged by the temporary help service firm to the third-party client is zero.

(e) A temporary help service firm shall be prohibited from collecting a placement fee during any period of suspension, revocation, or non-renewal of its certification to make designated classification placements by the Director of the Division of Consumer Affairs.

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