You get up every day and go to work, giving your employer your best. And, in turn, you trust that your employer will do everything possible to keep you employed. However, the recent periods of economic reorganization throughout the United States have resulted in waves of layoffs which, in turn, creates widespread job insecurity.
Being laid off disrupts every aspect of your life, so it is important that you know your legal options after a layoff. While federal and New Jersey state laws provide protections to you as a worker, you may not know what requirements your employer needs to follow, what your rights are, and how to enforce them. This is why it is important to consult with an experienced employment attorney who understands the interplay of complex federal, state, and local labor and employment laws.
Can My Employer Legally Lay Me Off?
New Jersey law permits employers to operate and manage their workforces by downsizing, relocating, or responding to shifting economic interests. However, the right is not absolute and requires employers to abide by federal and state fair employment practices. Further, employers must comply with layoff notification and pay requirements. NJ employees considering their rights after being laid off should speak to an attorney.
Federal WARN Act for Laid-Off Employees
The federal Worker Readjustment and Retraining Notification (WARN) Act protects workers, their families, and communities by requiring employers to meet notification requirements ahead of layoffs and plant closings. The federal WARN Act applies to qualifying employers with at least 100 full-time employees or 100 employees who work a combined 4,000 hours or more weekly.
Under the WARN Act, plant closings refer to the shutdown of a single employment site or at least one unit within a single location. Mass layoffs refer to workforce reductions that result in job loss for 500 or more full-time workers or 50-499 full-time workers if the number of employees accounts for at least 33% of the employer’s total workforce.
New Jersey Layoff Laws
As it stands, NJ’s WARN Act requires employers with 100 or more full-time workers to provide 60 days’ notice before a mass layoff, transfer, or termination. The Act applies if the layoff, transfer, or termination impacts 50 or more full-time workers.
Recent Changes to the NJ WARN Act
NJ Governor Murphy signed Assembly Bill 4768, which puts WARN Act changes into effect beginning on April 10, 2023. There are three fundamental changes to NJ’s amended WARN Act.
Broader Definitions
The expanded WARN Act redefines “mass layoff” to the termination of at least 50 full-time or part-time workers at or reporting to any group of establishments within NJ, in contrast to a single establishment. Further, the amendments apply to NJ employers with 100 employees, regardless of part-time or full-time status. Under the amendments, “employer” includes any entity or individual responsible for severance payments.
Additional Notice Requirements
The amended version of the WARN Act requires employers to provide 90 days’ notice of a layoff.
Mandatory Severance
Currently, employers are responsible for severance if an employee does not receive the required notice. Under the changes, the law entitles every employee to receive a notice and secure severance. Severance amounts must be at least one week of pay for every year of the worker’s service or a higher amount according to a collective bargaining agreement or employment contract. Further, for employees who do not receive 90 days’ notice, the law entitles them to an additional four weeks of severance.
Claims Against Employers for Violating WARN Act
Employers that violate the federal WARN Act may be liable to the impacted employee for an amount equal to back pay and benefits for the duration of the violation period, up to 60 days. Generally, courts tend to measure back pay by the number of work days in the violation period. However, some courts have measured back pay by the number of calendar days in the violation period. Further, employers who neglect the notice requirement may be liable for a civil penalty.
In addition, the NJ WARN Act permits unlawfully laid-off employees to seek compensatory damages. These workers may assert damages for lost wages, benefits, and other losses. In cases where the employer violates both the federal and NJ WARN Acts, the law entitles the employee to secure a higher amount of damages.
What if I Waived WARN Notice Requirements?
Sometimes, an employer may ask their employee to waive their rights to WARN notice in exchange for a severance package. It is important that in these cases, employees consult with an experienced attorney to understand the ramifications of agreeing to a waiver. However, in NJ, employees can only waive their right to severance with state or court approval.
