James Anelli, Craig Long and Ryan Warden
On January 10, 2023, Governor Murphy signed Assembly Bill No. 4768, which gives permanent effect to sweeping amendments previously enacted to New Jersey’s WARN Act (“NJ WARN”) [1]. Originally slated to take effect in July 2020, the Legislature deferred enacting the amendments throughout the state of emergency which followed the COVID-19 pandemic. With the signing of Assembly Bill No. 4768, the amendments, discussed below, take effect on April 10, 2023.
Expanded Notice Obligations
Under existing NJ WARN, employers with 100 or more employees nationwide who report to an establishment, defined below, must provide at least sixty (60) days’ notice before discharging any employee as part of a mass layoff, termination of operations, or transfer of operations.[2] Effective April 10, 2023, employers with 100 employees nationwide must provide at least 90 days’ notice to all affected employees.
Mandatory Severance
Prior to the amendments, affected employees received severance only when the employer had failed to provide the required sixty days’ notice. Beginning April 10, 2023, employers must provide severance to all affected employees, even when the employer provides 90 days’ notice of a mass layoff, termination or transfer of operations. This severance, based on longevity, must be paid at a rate equal to one week’s pay for each full year worked. This calculation is made using either the employee’s average rate of...
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