On August 18, 2022, New Jersey Governor Phil Murphy signed S-315, “An Act concerning changes in control of health care entities” (the Act). The Act implements employment protection for healthcare workers when certain licensed health care facilities, staffing registries, and home care services in New Jersey undergo a change in ownership. The Act first requires that former health care entity employers provide the successor health care entity with information pertaining to employees (i.e., employee names, addresses, dates of hire, phone numbers, wage rates, employment classifications) not less than thirty days before a change in control. The Act also requires former health care entity owners to inform eligible employees of the rights provided by the Act and to post a notice of their rights under the Act in a conspicuous location.
The Act further maintains that no change in control may occur without the execution of a contract or agreement between the prior owner and the successor owner which provides various proscribed assurances for eligible employees. For example, the contract is required to provide that:
With limited exceptions, an eligible employee of the prior owner may not be discharged without cause for at least four (4) months after the completion of the sale;
At the end of the transitional period after the completion of the sale, the successor employer must provide a written performance evaluation for each retained eligible employee, and offer the eligible...
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