In the case of chemically treated pallets quite simply yes.
Also, I thought the design was rather light on ventilation and I wonder how you'd deal with things like mold and fungi. All in all this is a crappy solution for a real problem, props to the person that came up with it but in reality this is not a solution, merely more problems and a way to declare the problem solved so we can pretend it is no longer a problem.
Btw, look for the letters "HT" on pallets when you want to re-purpose them, that indicates the wood was heat treated rather than chemically treated.