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Quijano Bill to Require Severance Pay, Expand Employment Protections during Mass Layoffs Now Law

Aiming to protect employees of companies experiencing mass layoffs, transfers or closings, legislation sponsored by Assembly Democrat Annette Quijano (D-Union) was signed into law on Tuesday.

The new mandate (formerly A-5145) requires employers in these situations to provide severance pay and to notify employees a minimum of 90 days prior to plant closings, transfers or mass layoffs. It also expands provisions under current law to ensure regulations include more employers, among other protections.

Assemblywoman Quijano released the following statement:

“When businesses go bankrupt or close, far too often, workers are given little notice or severance pay. We saw this happen right here in New Jersey last year when Toys R Us filed for bankruptcy, and was later forced to close its stores and lay off over 2,000 people at its Wayne headquarters and Flanders distribution center.

          “This new law will ease the burden on workers by ensuring they receive severance compensation and appropriate notice of layoffs, so that they will be able to continue to support their families and move on to their next endeavor with greater ease. Employees deserve to be treated fairly, especially when they are forced to leave a job due to circumstances beyond their control.”