Both the Senate and Assembly considered S-3170 (Cryan/Pou), which increases the prenotification time and requires severance pay in certain plant closings, transfers, and mass layoffs. The CCSNJ opposed this measure. The previous New Jersey WARN Act, which was enacted in 2007 after the closing of the Millville Dallas Airmotive Plant, required companies with 100 or more employees to provide 60 days’ notice to the NJ Department of Labor & Workforce Development, to the Mayor of the municipality in which the facility is located, and to each employee in the event of a layoff of 50 or more full-time employees. Additionally, employers were required to provide severance to employees if they did not meet the 60-day notice requirement. S-3170 (Cryan/Pou) increases the notification time to 90 days and requires employers to pay severance to employees equal to one week for each year of employment, regardless of whether or not the companies meet the notice requirement. The new law takes effect in mid-July of this year.

The bill was sent to Governor Phil Murphy’s desk January 13, 2020 and signed by the Governor on January 21, 2020.