NJ WARN act , which go into effect on April 10, 2023, impose new requirements on employers of 100 or more who implement mass layoffs or plan closure

On Jan. 10, Gov. Phil Murphy signed legislation implementing amendments to the Millville Dallas Airmotive Plant Job Loss Notification Act (“NJ WARN Act”) that were placed on hold during the COVID-19 pandemic. The amendments, which go into effect on April 10, 2023, impose new requirements on employers of 100 or more who implement mass layoffs or plan closures.

The Millville Dallas Airmotive Plant Job Loss Notification Act, also known as the NJ WARN Act, has been amended, and the amendments that were on hold during the COVID-19 pandemic will take effect on April 10, 2023. This act imposes new requirements on employers of 100 or more who implement mass layoffs or plan closures. In this article, we will provide a comprehensive guide for NJ employers about the amendments to the NJ WARN Act, including their expanded applicability, notice obligations, mandatory severance, and lower thresholds for mass layoffs. We will also discuss the impact of these amendments on employers.

What NJ Employers Need to Know about the Amendments

The NJ WARN Act amendments are more comprehensive than the original Act and the federal WARN Act, imposing significant obligations on New Jersey employers. Employers should consider the following key takeaways.

Expanded Applicability

The NJ WARN Act currently applies to employers with 100 or more full-time employees. However, under the amendments, the Act will now apply to employers with 100 or more employees, regardless of their full or part-time status. This change will result in many more small businesses being covered under the Act.

Notice Obligations

Under the existing NJ WARN Act, covered employers are only required to provide 60 days’ notice to affected employees before implementing a “mass” layoff, termination of operations, or transfer of operations. The amendments extend the notice period to 90 days. An employer who fails to provide 90 days’ notice will be required to provide each affected employee with an additional four weeks of severance, above and beyond the new mandated severance discussed below.

Mandatory Severance

Under the existing NJ WARN Act, employers are only required to pay severance as a penalty if the employer fails to provide the required notice. However, the new amendments require New Jersey employers to provide discharged employees with one week of severance pay for each full year of employment, even if the proper advance notice was provided. It's worth noting that a pending lawsuit is currently challenging this portion of the amendments on the grounds that the mandatory severance requirement is preempted by Federal law. The rate of severance is calculated as the employee’s regular rate over the last three years of employment or the final regular rate, whichever is higher. In the event the employee is subject to a collective bargaining agreement or employee agreement that addresses severance, the new law requires the employer to pay the greater of the amount set forth in the Act or in the respective agreement.

Lower Threshold for Mass Layoffs

To constitute a “mass” layoff under the existing NJ WARN Act, the layoff must result in the discharge of at least: (1) 500 employees at the establishment or (2) 50 employees representing at least 33% of the total workforce of the establishment. However, under the amendments, NJ WARN Act obligations are triggered by any layoff impacting 50 employees, even if 50 is below the 33% threshold.

The recent amendments state that when calculating the number of employees, it's not just the employees working at a New Jersey establishment that should be counted, but also those who "report to" the establishment. This means that remote or field employees who report to a New Jersey location must be included in the count of 50 or more employees for a triggering event.