NJ Labor And Employment Law

The New Jersey Labor and Employment Law Blog is authored by Jay S. Becker and Joseph C. DeBlasio, shareholders in the Labor and Employment Law Practice Group, with support from the associates in the Group. It is dedicated to provide news and updates regarding all labor and employment matters throughout New Jersey.

NJ On the Verge of Requiring Severance Benefits for Employees During Mass Layoffs

January 21, 2020 | No Comments
Posted by Ari Burd

Co-Authored by Jeri Abrams

Governor Murphy is expected to sign a bill which will require large employers (100 or more employees) to offer severance during mass layoffs.  Mass layoffs mean the termination of 50 or more employees, including both part-time and full-time employees.  For those employers with more than 100 employees, some of the significant changes proposed by this law include:

  • Increasing the amount of notice to employees of a mass layoff to 90 days (up from 60);
  • Adding a four week severance payment penalty for an employer’s failure to meet the 90 day requirement; and
  • Requiring payment of severance to employees equal to one week of pay for each year of service.

The law also appears to broaden the definition of an “employer” so that it would include those responsible for the layoff, including those that own the employing entity.

Once signed into law, we will provide a follow up with a more detailed analysis.

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