skip to Main Content
edith-master-removebg

New Jersey Governor Signs Historic Bill to Force Companies to Pay Severance for Mass Layoffs

edith-master-removebg

New Jersey Governor Signs Historic Bill to Force Companies to Pay Severance for Mass Layoffs

New Jersey Governor Signs Historic Bill to Force Companies to Pay Severance for Mass Layoffs

edith-master-removebg

Request Free Consultation.
Submit Your Case.

HOW WE TIP THE SCALES IN YOUR FAVOR

  • Exceptionally Smart Representation: Edith Pearce, MENSA member
  • Proven Results: Lifetime member of the Multi-Million Dollar Advocates Forum
  • No Fee unless we recover for you. Free Consultations
  • Peer Recognized Excellence: Super Lawyers; Philadelphia’s Best Lawyers; Multi-Million Dollar Advocates Forum; and AV Preeminent Rated® by Martindale-Hubbell-less than 5% of lawyers in U.S. receive this rating
  • National Reputation: Featured in Newsweek, The Philadelphia Inquirer, Philadelphia Magazine, FOX, Comcast, ABC
  • Inside knowledge to obtain top settlements: Decades of prior experience working for insurance companies means we know how to fight them for you!
  • Personal Attention with Aggressive Representation: Unlike many large law firms, the founding lawyer of our firm, Edith Pearce is involved in every case
  • Better Business Bureau A+ Rating -VIEW OUR BBB RATING

Under the new law, if a business lays off or transfers 50 or more employees at a time will have to pay a guaranteed severance package. New Jersey’s governor, Phil Murphy, signed the bill into law Tuesday, January 21, 2020, making companies liable for severance payments beginning in July 2020.

The law applies to companies with 100 or more employees, and the law also extends the mandatory notice for a layoff from 60 days to 90 days. The amount of severance pay will be at least a week’s wages for each year the employee has worked for the company.

This means that if an employer intends to layoff 50 or more employees, then they have to give a 90-day notice and pay each employee a week’s salary for how many years each employee has worked for the company. The bill was prompted by the 2018 closing of Toys R Us that laid off 2,000 employees in New Jersey.

A co-sponsor of the bill, state Sen. Joe Cryan, said, “When these corporate takeover artists plunge the companies into bankruptcy, they walk away with windfall profits and pay top executives huge bonuses, but the little guys get screwed.”

The law comes on the heels of others pass in New Jersey that will affect business in the state. On January 1, 2020, the state began its first phase of a $15 minimum wage. Now employers have to pay $11 an hour, which will climb to $15 an hour by 2024.

In 2018, a new law went into effect that places a 2% business tax hike for any companies that earn over $1 million a year.

Back To Top Call Now Button