New Jersey will become the first state forcing employers pay severances to mass-laid workers
Tuesday, Gov. Phil Murphy signed the legislation into law forcing the New Jersey employers to pay severances to the laid-off workers.
Now, according to the new law under title S3170 requires New Jersey employers provide their workers 90 days-notice before a large layoff or a plant closing. Additionally, the employers will have to pay their workers one week’s severance for every year of work. In case the employer doesn’t comply within 90-day notification, the payment will increase by an additional four weeks.
The law includes the enterprises with at least 100 employees with at least 50 people who are put out of work.
Initially, the law was pushed by the plight of more than 30,000 Toys “R” Us workers, who lost their jobs nationwide after the retail giant closed anf left withour severance.
“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,” state Sen. Joe Cryan, D-Union, who sponsored the bill, said in a statement. “The law will now be upgraded to better protect the rights of the employees. Workers’ performance and workers’ dedication to the company were secondary. Now, hopefully, they’ll be moved more to the forefront.”
Meanwhile, the New Jersey Business and Industry Association, which represents 20,000 businesses here, has warned the bill will deter companies from locating or expanding in New Jersey.
The bill passed 29-0 in the state Senate and 55-21 in the state Assembly.