Murphy Makes NJ First in U.S. to Give Severance for Mass Layoffs
New Jersey will become the first state in the country to make bigger companies give their employees severance after a mass layoff, according to NJBiz.
It will go into affected in six months, giving those affected one week of severance for every year employed with their company.
The specifics are that NJ employers with at least 100 employees have to give the employees they intend to let go 90 days notice (up from 60), when at least 50 employees are being laid off. If they don't give 90 days notice, they'll have to pay them for another four weeks.
State Senator Joseph Cryan, D-20th District, told NJBIZ, “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. 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.”
This was sparked by all of the workers who lost jobs suddenly when Toys R Us shut down.