The Third Circuit U.S. Court of Appeals has upheld a district court’s denial of the staffing industry’s request in a lawsuit filed last year to enjoin the New Jersey Temporary Workers’ Bill of Rights Act on various constitutional grounds. The court said the industry’s arguments—that the act violated the Commerce Clause, that it was unduly vague, and was an improper exercise of legislative power—were unlikely to be successful, which is a key condition of granting injunctive relief. The case now goes back to the district court for a final ruling on those issues.

The appeals court ruling does not affect a separate industry claim, filed in May, that the act’s equal benefits mandate violates the federal Employee Retirement Income Security Act. That claim is currently pending before the district court.

The act, passed in 2023, applies to construction, light industrial, and other workers—but excludes professional and clerical employees. In addition to mandating equal pay and benefits for temporary employees, the law limits conversion fees and bars staffing agencies from charging employees for transportation.