- April 20, 2020
- Alerts
New Jersey Amends Warn Act to Delay New Provisions
On April 14, 2020, Governor Murphy signed legislation that revises the Millville Dallas Airmotive Plant Job Loss Notification Act (the “NJ WARN Act”), including recent amendments that were to take effect in July 2020. The NJ WARN Act requires businesses to give employees proper notice before taking certain employment actions, including business closures and mass layoffs. In light of the COVID-19 crisis, the State of New Jersey modified certain provisions of the NJ WARN Act in the event of a mass layoff or the termination of operations. Specifically, the recent amendments to the NJ WARN Act are now to take effect 90 days after the termination of Governor Murphy’s Executive Order 103 concerning the current Public Health Emergency and State of Emergency relating to the COVID-19 crisis. Some of the amendments key features are:
Expanded Definition of “Mass Layoff”: The definition of “mass layoff” now excludes a mass layoff that is necessary because of a fire, flood, natural disaster, national emergency, act of war, civil disorder or industrial sabotage, decertification from participation in the Medicare and Medicaid programs as provided under Titles XVIII and XIX of the federal “Social Security Act” (42 U.S.C. 1395 et seq.) or license revocation of a New Jersey health care facility. This means that layoffs due to national emergencies, including the COVID-19 crisis, do not trigger the NJ WARN Act. Before this amendment, the “national emergency” exception only applied to a “termination of operations.” This modification is effective retroactive to March 9, 2020, meaning that COVID-19 layoffs that occurred on and after that date are excluded from the definition of “mass layoff.”
Lower Threshold for Mass Layoffs: A mass layoff that impacts 50 or more employees triggers the NJ WARN Act, even if fewer than 33% of the employees are impacted. The existing NJ WARN Act provided that a layoff must result in the discharge of at least (1) 500 employees at the establishment, or (2) 50 employees representing at least 33% of the total workforce of the establishment. The amendment eliminates the 500 employee requirement and the 33% requirement from the 50 employee requirement.
New Notice and Severance Requirements: Employers with 100 or more employees must provide at least 90 days’ notice before the first employee is discharged as part of a mass layoff, termination of operations, or transfer of operations. The existing NJ WARN Act requires only 60 days’ notice. Employers must also provide discharged employees, including, part-time employees, with “severance pay equal to one week of pay for each full year of employment.” The existing NJ WARN Act obligated an employer to pay severance as a penalty if it failed to provide the required amount of notice.
Should you have any questions regarding the above, please contact the Garfunkel Wild attorney with whom you regularly work, or contact us at info@garfunkelwild.com.
Expanded Definition of “Mass Layoff”: The definition of “mass layoff” now excludes a mass layoff that is necessary because of a fire, flood, natural disaster, national emergency, act of war, civil disorder or industrial sabotage, decertification from participation in the Medicare and Medicaid programs as provided under Titles XVIII and XIX of the federal “Social Security Act” (42 U.S.C. 1395 et seq.) or license revocation of a New Jersey health care facility. This means that layoffs due to national emergencies, including the COVID-19 crisis, do not trigger the NJ WARN Act. Before this amendment, the “national emergency” exception only applied to a “termination of operations.” This modification is effective retroactive to March 9, 2020, meaning that COVID-19 layoffs that occurred on and after that date are excluded from the definition of “mass layoff.”
Lower Threshold for Mass Layoffs: A mass layoff that impacts 50 or more employees triggers the NJ WARN Act, even if fewer than 33% of the employees are impacted. The existing NJ WARN Act provided that a layoff must result in the discharge of at least (1) 500 employees at the establishment, or (2) 50 employees representing at least 33% of the total workforce of the establishment. The amendment eliminates the 500 employee requirement and the 33% requirement from the 50 employee requirement.
New Notice and Severance Requirements: Employers with 100 or more employees must provide at least 90 days’ notice before the first employee is discharged as part of a mass layoff, termination of operations, or transfer of operations. The existing NJ WARN Act requires only 60 days’ notice. Employers must also provide discharged employees, including, part-time employees, with “severance pay equal to one week of pay for each full year of employment.” The existing NJ WARN Act obligated an employer to pay severance as a penalty if it failed to provide the required amount of notice.
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Should you have any questions regarding the above, please contact the Garfunkel Wild attorney with whom you regularly work, or contact us at info@garfunkelwild.com.