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Quijano, Milam & Land Bill to Require Severance Pay, Expand Employment Protections During Mass Layoffs Clears Assembly Panel

Legislation aimed to protect employees of companies experiencing mass layoffs, transfers or closings was approved Monday by the Assembly Labor Committee.

The bill (A-5145) would require 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 would also expand provisions under current law to ensure regulations include more employers, among other protections.

Bill sponsors, Assembly Democrats Annette Quijano (D-Union), Matt Milam and Bruce Land (both D-Cape May, Atlantic, Cumberland), released the following joint 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 bill would 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.”