On January 21, Governor Murphy signed Senate Bill 3170 into law, dramatically expanding the requirements for employers who want to stop doing business in New Jersey.
This new law expands employers’ advance notice and severance pay obligations under the Millville Dallas Airmotive Plant Job Loss Notification Act (NJ Warn Act).
What does the revised NJ Warn Act require?
- 90 days advance notice to employees affected (it used to be 60), and this is triggered by a termination of 50 employees, regardless of their full or part-time status, and where they work in the state. This requirement applies if you employ 100 or more workers.
- The calculation of 100 or more workers includes both full and part-time employees, regardless of the amount of time they worked for the employer.
- Automatic severance pay to each affected employee of one week for each year of employment, in addition to the 90 days’ notice. Employees may not waive their right to severance without state or court approval.
- If you fail to provide the 90 days‘ notice, employers will owe employees affected by the layoff an additional four weeks of severance.
- The definition of employer has also been expanded, so before you make any decisions about changing your New Jersey workplace, contact your counsel to discuss your obligations under the NJ Warn Act.
Effective July 19, 2020, New Jersey will have the toughest reduction-in-force law in the country.
The content of this post is for informational purposes only and should not be construed as legal advice or legal opinion. You should consult a lawyer concerning your specific situation and any specific legal question you may have.