October 17, 2021

Volume XI, Number 290

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October 15, 2021

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NJ On the Verge of Requiring Severance Benefits for Employees During Mass Layoffs

Governor Murphy is expected to sign a bill which will require large employers (100 or more employees) to offer severance during mass layoffs.  Mass layoffs mean the termination of 50 or more employees, including both part-time and full-time employees.  For those employers with more than 100 employees, some of the significant changes proposed by this law include:

  • Increasing the amount of notice to employees of a mass layoff to 90 days (up from 60);

  • Adding a four week severance payment penalty for an employer’s failure to meet the 90 day requirement; and

  • Requiring payment of severance to employees equal to one week of pay for each year of service.

The law also appears to broaden the definition of an “employer” so that it would include those responsible for the layoff, including those that own the employing entity.

© 2021 Giordano, Halleran & Ciesla, P.C. All Rights Reserved National Law Review, Volume X, Number 21
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About this Author

Ari G. Burd, Shareholder, Giordano Law Firm, Labor & Employment, Cannabis Law, Health Care
Shareholder

Ari devotes his time to assisting and defending employers with regard to traditional employment issues. He frequently counsels employers for compliance with New Jersey laws and has extensive transactional and litigation experience.

Ari has litigated employment matters throughout the state, having made appearances in almost every Superior Court in New Jersey, as well as before both Federal District Courts in New Jersey and the Federal and State Courts in New York.  These actions have involved a diverse range of claims such as wrongful discharge, discrimination, harassment,...

732-741-3900
Jeri L. Abrams, Giordano Halleran, Employment Documentation Lawyer, Workplace Litigation Attorney,Labor & Employment
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Jeri focuses primarily on employment law, with an emphasis on drafting and negotiating complex employment-related documentation, such as executive employment, consulting, restrictive covenant, commission, bonus, retention, change-in-control and severance agreements. Jeri counsels employers on a broad range of employment matters, including hiring, disciplining and terminating employees, family and medical leaves, disability leaves and accommodations, anti-discrimination and anti-retaliation laws, wage and hour compliance, and reductions in workforce. She works closely...

732-741-3900
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