A historical mandate recently passed in New Jersey, where workers who are jobless because of their former employer’s mass layoff will now be given a severance. The terms of the new legislation are aimed at businesses with 100 or more employees who consider implementing a mass layoff. New Jersey is the first state in the country to pass such legislation.
The severance pay is equal to one week’s worth of pay for every year they were employed by the company. The legislation also requires employers to give their workers 90 days notice of the layoff, which is an increase from the previous mandated 60 days. If a closing or bankrupt company fails to meet these standards, then they will be penalized an additional four-week payout to the employees.
The new law, scheduled take affect in July, is meant to sway businesses from using mass layoffs as a strategy to save their dwindling profits and declare bankruptcy, ultimately leaving the non-executive worker unemployed and scrambling to make a paycheck, which was demonstrated by Toys R’ Us in 2017. The company declared bankruptcy and laid off over 30,000 workers and offered severance packages only to top executives.
Companies like Toys R’ Us have been following this alarming trend, where executives of floundering businesses were seemingly awarded while others were hung out to dry. After learning of the severance packages, former lower level employees organized an effort, with the support of United for Respect, to demand compensation. They were eventually awarded a package of $20 million in financial assistance to help those who did not receive any severance.
Businesses that earn more than one million dollars will also see a tax hike in the coming years. Those that oppose the tax hike, combined with the rise of minimum wage and the newly formed severance package law, fear that it will cause businesses in the state to simply leave, causing more financial stress on the budget. Supporters of the recent mandates applaud the efforts of Governor Murphy and state lawmakers, as the new legislation is aimed to protect the rights of workers, instead of bailing out major businesses who rely on layoffs to solve their problems.
Cherry Hill Employment Lawyers at Sidney L. Gold & Associates, P.C. Protect the Rights of Laid Off Workers
Losing your job can dramatically change your life in an instant, especially when there is no severance package. If you have employment issues or were part of a massive layoff, then contact the Cherry Hill employment lawyers at Sidney L. Gold & Associates, P.C. Our experienced and knowledgeable lawyers will protect your rights and obtain the best compensation possible for you and your family. Call us today at 215-569-1999 or fill out our online form for a free consultation. Located in Pennsauken, New Jersey, we proudly serve clients throughout South Jersey, including Cherry Hill, Haddonfield, Marlton, Moorestown, and Mount Laurel.