New Jersey Significantly Modifies the New Jersey WARN Act to Require Severance Pay for Mass Layoffs

On January 21, 2020, New Jersey Governor Phil Murphy signed Senate Bill 3170 (the “amendments” or “NJ WARN Act”) into law making New Jersey the first state in the nation to require severance pay for mass layoffs.  The law, scheduled to go into effect on July 19, 2020, will make it dramatically more expensive for companies to conduct a large scale reduction in force in New Jersey.

Specifically, the amendments revised the NJ WARN Act as follows:

In light of the drastic increase in coverage and penalties, New Jersey employers should review their termination policies and consider seeking the advice of counsel before making any significant reductions in force in New Jersey.

Myles Moran, a law clerk in Sheppard Mullin’s New York office contributed to this article.

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National Law Review, Volumess X, Number 42