Delta Personnel Services paid a $4,810 penalty after opening unlicensed temp agency offices in New Brunswick and Bound Brook, state officials said. Watch video
NEW BRUNSWICK -- A second temp agency featured in an NJ Advance Media series on alleged mistreatment of workers in the state's temporary employment industry has been fined for operating locations without a license, state officials said.
Delta Personnel Services, a chain of temp agencies based in Somerset, agreed to pay $4,810 after a state investigation found the company was recruiting temp workers in offices in New Brunswick and Bound Brook without a license, according to a settlement released last week by the state Division of Consumer Affairs, which oversees licensing.
Under state law, temp agencies are required to put up a $1,000 bond and apply for a license for each location where they hire workers.
Delta was one of several agencies featured in "The invisible workforce," an NJ Advance Media series that chronicled the alleged discrimination, unsafe working conditions and sexual harassment some blue collar workers say they face while working in low-paying temporary jobs in New Jersey warehouses and factories.
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NJ Advance Media's investigation -- conducted with the assistance of Reveal from The Center for Investigative Reporting in California -- found several prominent temp agencies appeared to be operating without licenses and were not listed among the more than 2,200 firms in the state's database of registered firms.
Advocates for temp workers say the fact that several of the state's top temp agencies appear to be openly operating without state approval shows the lack of government oversight of the booming temp industry, which employs more than 90,000 workers in New Jersey. Some workers have complained it is difficult to report alleged mistreatment to authorities when storefront temp agency offices regularly open and close without any record.
However, some temp agency owners say the state is doing a poor job of communicating which regulations companies must meet to comply with the existing laws.
Stan Lyskowski, Delta's president and chief executive officer, said he was unaware the law required his temp agency to license its satellite offices in New Brunswick and Bound Brook, which have been open for more than 15 years.
"No one said anything to us," and Lyskowski, who has been in business 31 years. "It's like they don't have a speed limit sign posted and you get a ticket."
In its settlement agreement with the state, Delta did not admit to any wrongdoing. The company, which places about 550 temps a week, has never had any previous problems with licensing or compliance issues, its owner said.
"This was a technical violation," Lyskowski said, noting the state did not find the company was operating any other part of its business unlawfully.
Delta agreed to pay the state $2,500 in civil penalties and $2,310 in attorney fees, according to the legal papers detailing the settlement. The company also agreed to properly register its New Brunswick and Bound Brook offices.
Delta has also registered a new office in Hightstown, which is scheduled to open in January, Lyskowski said.
Earlier this year, another temp agency paid a $10,500 civil penalty for operating locations without a license following the NJ Advance Media investigation.
The president of Strategic Staffing, which has offices in New Brunswick, Bound Brook, Union City and other locations, also said he was not aware of the state law requiring all temp agency locations to be licensed by the state. The company paid the $10,500 penalty and registered all of its locations immediately after learning of the violation, company officials said.
Two additional temp agencies were under investigation for similar alleged violations in response to "The invisible workforce" series, state officials said in October.
State Division of Consumer Affairs officials declined to discuss the status of those investigations.
"The division neither confirms, nor denies, the status or existence of investigations," said Lisa Coryell, a spokeswoman for the state Division of Consumer Affairs.
Earlier this month, the state Assembly's Labor Committee voted 6-0 to advance a bill that would place temp agencies under tougher regulations and provide more job protections for temporary workers. Assemblywoman Sheila Oliver (D-Essex) said she introduced the legislation in response to the alleged mistreatment of workers detailed in NJ Advance Media's "The invisible workforce" series.
The bill would force temp agencies to comply with stricter state rules and require firms to put up a $10,000 bond, instead of the current $1,000 bond, for each location they opened. The legislation would need to be approved by the full Assembly and the state Senate and signed by Gov. Chris Christie to become law.
The New Jersey Staffing Alliance, a group that represents more than 140 employment companies, released a letter in October saying it was opposed to any new regulations for temp agencies. But, the group called for better enforcement of existing laws, higher fines and more staff at state agencies overseeing the growing industry.
Kelly Heyboer may be reached at kheyboer@njadvancemedia.com. Follow her on Twitter @KellyHeyboer. Find her at KellyHeyboerReporter on Facebook.