Stricter requirements on mass layoffs, business closures set to take effect

February 2023 employment law letter

Authors:

Yostina Mishriky and Brigette N. Eagan, Genova Burns LLC

In 2020, New Jersey amended the Millville Dallas Airmotive Plant Job Loss Notification Act (referred to as the NJ WARN Act), which regulates employers implementing mass layoffs and business closures.

Governor Phil Murphy placed the amendments on hold because of the COVID-19 pandemic. Three years after their enactment, on January 10, 2023, the governor passed legislation making the amendments effective on April 10, 2023. The amendments change the landscape for employers that are forced to close their doors or reduce their workforce.

Current NJ WARN Act

The NJ WARN Act currently requires employers with 100 or more full-time employees to provide a 60-day advance notice prior to a mass layoff, termination, or transfer of operations that results in the termination of employment of 50 or more full-time employees.

Under the NJ WARN Act, a “mass layoff.” is the termination of employment within a 30-day period. Additionally, in a mass layoff, 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% or more of the full-time employees at the establishment at issue.

Major changes to the NJ WARN Act:

The following changes to the NJ WARN Act become effective on April 10, 2023:

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