Articles Posted by Insights

As the country reels from the coronavirus pandemic, the economic impact on businesses and employees has become painfully evident.   Whether due to personal or family illness with the virus, self-isolation, school or business closures, or a downturn in business, employees are expected to be facing extended absences from the workplace.   Many employees, especially hourly workers, may not have available paid time off or the economic cushion to weather the loss of income during the absence. Employers may not have the financial wherewithal to pay employees during these absences. In anticipation of these and other  dire economic consequences brought on by the virus, the U.S. House of Representatives passed the Emergency Paid Leave Act with the support of the President. On March 16, 2020 the House substantially revised the bill to significantly narrow the relief available to employees under the original version.  The Senate passed the bill two days later and it is now headed to the President for his signature.  The Families First Coronavirus Response Act will provide economic relief to employees affected by coronavirus-related absences.

The Act will apply to employers with 500 or less employees.   Larger employers are not covered. Administration and Senate leaders have commented that these larger employers typically provide sick leave benefits to their employees,  but many may not provide for two weeks of leave. If not, these employees may be unprotected. Employers with less than 50 employees can apply for an exemption through the Department of Labor if it would “jeopardize the viability of the business”, a vague standard that has yet to be defined.

We have outlined below key provisions of the Act that we hope will assist employers in making difficult staffing decisions going forward.

For nearly two decades New Jersey employers had to comply with the notice requirements of the Federal Worker Adjustment and Retraining Notification Act (WARN), 21 U.S.C. 2100 et seq., as well as New Jersey’s similar counterpart, Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN Act), N.J.S.A. 34:21-2. While not identical, both statutes require New Jersey employers with 100 or more employees to provide 60 days’ written advance notice to those employees affected by a “mass layoff” or “plant closing” or a “termination of operations” or “transfer of operations” as those are defined under the respective statutes. Both laws require similar notifications to designated state and local officials. A failure to provide the required 60 days’ advance notice could result in liability for wages and benefits for the period for which the notice was not provided to the affected employee.

As a result of the Toys ‘R’ Us bankruptcy filing in 2017, more than 30,000 workers were laid off nationally, and approximately 2,000 in New Jersey. Initially, these employees were not provided with any severance benefits but an ensuing battle ultimately resulted in the establishment of an assistance fund to provide some monetary relief to affected employees. Critics claimed that these benefits fell far short of what these workers should have been paid.

The Toys ‘R’ Us closures’ effect upon the citizens of New Jersey did not go unnoticed by the state legislature. On Jan. 21, 2020, New Jersey amended the NJ WARN Act to become the first state to mandate employee severance payments in the event of a closure of operations or mass layoff of employees. The amendments also extend significant additional protections to New Jersey employees, making it the most progressive law of its kind in the country. The law goes into effect July 19, 2020.

NEW JERSEY AND YOU, PERFECT TOGETHER?  NOT SO MUCH. 

Slew of Bills Out of Trenton Impose Increasing Burdens on Those Doing Business in the State

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