New Jersey's Mini-WARN Act
New Jersey Adopts Groundbreaking Amendments to Its Mini-WARN Act
On January 21, 2020, Governor Murphy signed Senate Bill 1370 amending the Millville-Dallas Airmotive Plant Job Loss Notification Act to expand employers’ notice requirements and imposing severance pay obligations to employees who lose their job in a mass layoff.
Changes were made in a number of areas, including:
- Employers to whom it applies: Employers with at least 100 employees without regard to length of service or hours worked.
- When it applies: Terminations of 50 employees, not based on their length of service or hours of work, within a 30-day period (or within a 90-day period if it cannot be proved that terminations are for separate and distinct causes).
- Locations of terminations: Employers must aggregate all terminations within the state to determine application.
- Notice period: Employers are now required to provide notice at least 90-days in advance of the event.
- Provide notice to: Each employee whose employment is to be terminated and any collective bargaining unit, the chief elected official of the municipality where the establishment is located, and the Commissioner of Labor and Workforce Development.
- Severance: The level of severance pay is specified and will be automatic. The method to be used in calculating severance is defined in the law and payment is considered earned in full upon termination of employment. Any waiver of the right to severance must be approved by the state or court. Adequate consideration for any general release of claims in exchange for severance is defined.
- Definition of employer: The definition of “employer” has been expanded; individuals acting in the interest of an employer, including owners and management personnel who are responsible for the decision to effectuate a mass layoff, can be held personally liable.
Effective July 19, 2020.
Note: The NJ WARN Act has been suspended until 90 days after the termination of the New Jersey State of Emergency. (New Jersey Executive Order 103 dated March 9, 2020, and extended indefinitely on April 7, 2020 with Executive Order 119.)
Employers located within the state of New Jersey with at least 100 or more employees without regard to length of service or hours of work.
For more details on the enacted legislation, please click HERE
NJ Mini-WARN Chart
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