Inspiring HR welcomes you to our monthly State Labor Law Updates. These briefs provide a general description and are not meant to be all inclusive of compliance requirements. This list is not inclusive of all legislative changes for employers across the U.S. Other upcoming changes may have been addressed in previous updates, which can be accessed online on our website at www.inspiringhr.com.
Employers are encouraged to work with their Inspiring HR Consultant before making policy changes to capture the full requirements of these laws.
This month, our notable upcoming state law change takes place in the Northeast.
NJ WARN ACT Amendment– Effective July 19, 2020
The New Jersey Worker Adjustment & Retraining Notification (WARN) Act has new employer eligibility and requirements. The following changes will apply to NJ employers:
- A Covered Employer – NJ WARN will apply to all employers with 100 employees or more regardless of their length of services or hours work and has been in operation for a minimum of three years.
- Layoff Triggers – NJ WARN is triggered by the termination or layoff of a minimum of 50 employees, regardless of the length of service or hours worked by the employee. The layoff amount is the total number of employees across the state, not just in one location. Layoffs are only counted if they are all within a single 30-day period, or within a 90-day period if it cannot be proved the terminations are for separate and distinct reasons. The layoff of seasonal employees is not considered termination of employment under the law. Also, transferring employees to another state or transferring employees more than 50 miles from the original location of employment is considered termination of employment if the employee does not accept the transfer.
- Notification Requirement – Employers are now required to provide 90 days advance notice to all affected employees. If 90 days advance notice is not provided, the total severance amount increases by four weeks.
- Severance Pay – Employers are now required to provide severance pay to all terminated employees. Severance pay is equal to one week of pay for every year of service. If proper notification is not provided, the employee will receive an additional four weeks of severance pay.
This post does not constitute legal advice and there are subtle variations in employment law as it pertains to these topics, depending on where your business operates. It is strongly suggested that you seek HR consultation or legal counsel before making decisions about policies.