New Jersey: State WARN Act Rules Expanded For Mass Layoffs

APPLIES TO

Employers with 100+ NJ Employees

EFFECTIVE

July 19, 2020

QUESTIONS?

Contact HR On-Call

(888) 378-2456

With COVID-19 sweeping the country and the world, businesses may suffer. For New Jersey employers with 100 or more employees, the rules for large reductions in force just got more strict. SB 3170 makes the following significant changes to the Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN Act):

  • The rules apply to employers with 100+ employees, regardless of full-time status or seniority.
  • The rules apply to termination of 50+ employees, regardless of full-time status, seniority, or location within the state.
  • Employers must provide 90 days’ advance notice to employees.
  • If the required advance notice is given, employers must pay terminated employees one week of severance pay for each year of employment. If the required advance notice is not given, employers must pay an additional four weeks of severance.
  • Employees can’t waive their right to severance without court or state agency approval. If employers are seeking a release of claims in exchange for severance, they will need to offer more consideration than what is already required under the NJ WARN Act.

Employers should be evaluating their finances for compliance with the NJ WARN Act if they suspect a need to conduct a reduction in force.

Action Items

  1. Review the text of the bill here.
  2. Review any potential reduction in force early with legal counsel.
  3. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2020 ManagEase

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