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.

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