March 2023: Reminder: New Jersey Expands Mini-WARN Requirements

Update Applicable to:
All employers with 50 or more employees in the state of New Jersey.

What happened?
In our previous communication, we notified you that Governor Murphy signed new bill A4768 into law, which amends the effective date of amendments to the Millville Dallas Airmotive Plant Job Loss Notification Act (“NJ WARN”) that was originally passed in January 2020. This is a reminder of that communication.

What are the details?
Changes to New Jersey’s mini-WARN law, which applies to employers with 100 or more employees, take effect on April 10, 2023. As amended, the state’s mini-WARN notice and severance requirements are triggered when an employer terminates or lays off 50 or more employees working in or reporting to New Jersey over 30 days or 90 days if the reasons for the terminations/layoffs are related. Here are the highlights of the changes.  

Severance 
When conditions trigger the mini-WARN law, employers must provide laid-off employees with a severance payment equal to one week of pay for each full year of their employment.  

Suppose an employer doesn’t provide 90 days’ notice of the layoff. In that case, they must also provide an additional four weeks of pay to each affected employee (essentially a penalty for lack of notice).  

Previously, covered employers only had to provide laid-off employees with this payment if they did not provide sufficient notice under the law. Now, severance payments will be required even if the employer provides the required notice.  

Counting Employees 
To determine whether the 100-employee coverage threshold is met, all employees are counted, regardless of what state they work in or their full-time or part-time status. Previously, only full-time employees were counted. 

To determine whether the 50-employee layoff threshold is met, employers must count part-time and full-time employees at all worksites in New Jersey and those who report in to a location in New Jersey.  

Previously, the law applied only if 50 employees were laid off in a “single place of employment.” Now, the law applies if 50 employees are laid off at “an establishment,” defined as a single location or group of locations in the state.  

Notice 
Covered employers must provide 90 days’ notice before the mass layoff or termination. Previously, the requirement was 60 days’ notice. 

For more information, please see the links below:

NJ WARN Act

Previous Vensure Communication (January 24, 2023)

Ogletree Deakins FAQ Articles 1, 2, and 3

Article 1 – Article 2

What do employers need to do?
Employers should review the links above and take proactive steps to ensure they will be ready for the implementation on April 10, 2023. Provided above are several links to FAQ articles by one of our most trusted sources, Ogletree Deakins, which can offer more assistance and guidance.