New Jersey eases up on employers, modifies looming changes to state's WARN Act

June 2020 employment law letter

Authors:

Paul H. Mazer and John R. Vreeland, Genova Burns LLC

In response to employers' growing concerns about the COVID-19 pandemic, Governor Phil Murphy recently signed legislation (S2353, or the "April 14th Amendment") making two significant changes to the Millville Dallas Airmotive Plant Job Loss Notification Act (S3160, or NJ WARN), which he had signed on January 21, 2020. Initially scheduled to take effect July 19, 2020, NJ WARN required employers to provide longer notice periods and mandatory severance pay in connection with a large layoff or facility closure.

NJ WARN Act

NJ WARN currently requires employers with 100 or more full-time employees to provide 60 days' advance notice before a mass layoff or a closure or transfer of operations that results in the termination of 50 or more full-time employees. Under the current law, a "mass layoff" is the termination within a 30-day period, and for which the employer doesn't make a commitment to reinstate within six months, either of the following:

500 or more full-time employees; or
50 or more full-time employees, which represent 33 percent or more of the individuals in that category at the establishment at issue.

April 14th Amendment

The April 14th Amendment creates an exception to an employer's notice obligation for mass layoffs that are necessary because of a fire, flood, natural disaster, national emergency, act of war, civil disorder, industrial sabotage, or decertification from participation in Medicare and Medicaid programs. The change mirrors the exception to an employer's notice obligation, currently included in the definition of an employer's "termination of operations."

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