The new year has brought with it new legislation in New Jersey that warrants close scrutiny by hotel owners and operators alike. Introduced as Bill A-6246, which was signed by Governor Phil Murphy on January 18, 2022, upon a “change in control, controlling interest or identity of a hotel,” a successor hotel employer must provide service disruption notices and certain job protections to the existing eligible hotel service employees, including offering employment to such employees with no reduction to wages or benefits for a retention period of not less than 90 working days.
When is this law triggered?
As noted above, the law is triggered when there is either a: (1) “change in control” of a hotel or (2) “change in controlling interest or identity” of a hotel. A “change in control” is broadly defined to include “any sale, assignment, transfer, contribution or other disposition of all or substantially all of the assets used in the operation of a hotel or a discrete portion of a hotel.” A “change in controlling interest or identity” also covers a broad scope of transactions to include “any sale, assignment, transfer, contribution or other disposition of a controlling interest, including by consolidation, merger or reorganization, of a hotel employer or any person who controls a hotel employer; or any other event or sequence of events, including a purchase, sale or lease termination of a management contract or lease, that causes the identity of the hotel employer at a hotel to...
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