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Governor Phil Murphy previously signed a law back in January 2020 that requires employers to give severance pay to workers who were let go due to many layoffs. This law was supposed to be set in 2020 but due to the coronavirus pandemic, it was put on hold. Looking beyond that, Gov. Murphy is ordering the new law to be enacted in 90 days. Examining the law more closely, it states that businesses with 100 or more employees must pay a severance of one week for each year of work in the event of a large layoff or a plant closing or transfer that will put at least 50 people out of a job.
Along with that, businesses are also mandated to notify employees of a mass layoff within 60 days of doing so. The main advocacy for this law came from Toys “R” Us shutting down which led to more than 30,000 employees being out of jobs across the United States and about 2,000 being jobless in New Jersey. This new law did come with some criticism from the NJ Business and Industry Association which believe that companies will steer clear of locating in New Jersey with this new law set to take place.