Significant Changes To New Jersey’s WARN Act
In January 2020, New Jersey enacted significant changes to the state’s existing Millville Dallas Airmotive Plant Job Loss Notification Act, commonly referred to as NJ WARN. The COVID-19 pandemic had delayed implementation of those changes, which will now become effective on April 10, 2023. The NJ WARN is far more expansive than the federal WARN Act (see comparison chart below). Contact your Vorys lawyer if you have questions about NJ WARN’s impact (or that of the federal WARN or similar state plant closing laws) on your operations.
Expansion of NJ WARN’s Mandatory Severance Pay
NJ WARN already required that employers pay full-time employees affected by mass layoffs severance pay equal to one week of pay for each full year of employment when the employer failed to provide the requisite 60 days’ notice.
As of April 10, 2023, however, employers must provide severance pay to all affected employees (full-time and part-time) – regardless of whether the employer provides 90 days’ notice of the mass layoff, termination or transfer of operations. Severance is paid at the rate of one week of pay for each full year of employment. In addition, if the employer provides less than 90 days’ notice, the employer must provide the affected employees with an additional four weeks of pay. Employees cannot waive their right to severance without the approval of the New Jersey Labor Commissioner or the court.
Finally, the definition of “employer” has been expanded to mean “any individual, partnership, association, corporation, or any person or group of persons acting directly or indirectly in the interest of an employer in relation to an employee, and includes any person who, directly or indirectly, owns and operates the nominal employer, or owns a corporate subsidiary that, directly or indirectly, owns and operates the nominal employer or makes the decision responsible for the employment action that gives rise to a mass layoff subject to notification.” This change creates potential personal liability for any such person who fails to comply with the law’s notice and severance requirements.
Comparison of key Provisions of the Federal WARN Act and NJ WARN
| WARN ACT | NJ WARN AS AMENDED |
| Employer Coverage | |
|
Any business enterprise with 100 or more employees, excluding part time; or 100 or more employees, including part time, who work a combined total of at least 4,000 regular hours per week |
An individual or private business entity operated by an employer for a period longer than three years and employs 100 or more employees (both full-time and part-time) at an establishment |
| Covered Actions | |
|
Plant Closings: the permanent shutdown of a single site of employment, if the shutdown results in an employment loss during any 30-day period for 50 or more employees Mass Layoffs: results in an employment loss of at least 33% of the workforce at a single site of employment during any 30-day period, provided at least 50 employees are affected. If 500 employees are affected, the one third requirement does not apply |
A transfer of operations, a termination of operations, or a mass layoff during any continuous period of 30 days which results in the termination of employment of 50 or more employees (both full-time and part-time) |
| Notice Requirement | |
| 60 days | 90 days |
| To Whom Notice Must be Provided | |
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| Notice Content | |
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