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Governor Phil Murphy signed legislation yesterday, January 21, 2020, amending New Jersey’s mini-WARN law, the Millville Dallas Airmotive Plant Job Loss Notification Act (the “Act”). Most notable among the changes is the requirement that companies with 100 or more employees (now including part-time workers) pay severance to employees impacted by a mass layoff. A “mass layoff” is considered any plant closing or transfer resulting in 50 or more employees losing their jobs.

Pursuant to the Act, impacted employees must receive at least one week of pay for every year of service as a severance payment. When calculating the amount of severance pay, the rate of pay must be the greater of the employee’s average rate of compensation during the last three years or the employee’s final rate of pay. If the employee is entitled to a greater amount of severance under any contract, policy, or collective bargaining agreement, the employee must receive the greater amount. The Act classifies the severance payments as “compensation due to an employee” that has been “earned in full,” so that employees who do not receive the required severance have a priority claim if the employer files for bankruptcy.Continue Reading New Jersey law requires severance pay in mass layoffs

A part of the hiring process for many employers involves asking applicants about their prior salary and compensation information. Employers might use this information in deciding whether to make an offer to a particular candidate and the amount of compensation to offer the potential employee. However, beginning January 1, 2020, employers in New Jersey will no longer be permitted to request this information.

The new law prohibits New Jersey employers from inquiring into an employee’s salary history before making an offer; using salary history to “screen” an applicant; or requiring an applicant’s salary history to meet any minimum or maximum criteria. Employers also cannot use an applicant’s refusal to volunteer compensation information as a factor in any employment decision. There are certain exemptions, including internal applicants and disclosures required by federal law.Continue Reading New Jersey prohibits employers from asking about salary history

Over the past few years, 31 states have legalized some form of medical or recreational marijuana use and this wave of legalization continues to grow. Since there has been no consistent approach taken related to the intersection of legalized use and employment, employers must stay vigilant about recent developments in each location in which they operate.

To assist in navigating these waters, below is a summary of the recent enactments in Illinois and Nevada, as well as an update as to newly published judicial interpretations of the medical marijuana laws in New Jersey and Michigan.
Continue Reading New marijuana laws and court cases continue to provide inconsistent guidance for employers: a summary of recent developments in Illinois, Nevada, New Jersey and Michigan

On March 18, 2019, New Jersey Governor Phil Murphy signed new legislation (S121) that significantly impacts the scope of certain employment agreements and settlement agreements between employers and employees/former employees. The controversial legislation addresses the following:

  1. Ban on waiver of substantive and procedural rights in employment contracts related to discrimination, harassment or retaliation claims

The legislation voids any provision in an employment contract that waives “any substantive or procedural right or remedy relating to a claim of discrimination, retaliation or harassment.” In addition, the legislation prohibits an employer from prospectively waiving any right or remedy under the New Jersey Law Against Discrimination (NJLAD).

This language could impact agreements such as jury trial waivers and arbitration agreements. To the extent that the law touches arbitration agreements, however, it will likely face challenges on the grounds that the law conflicts with, and is preempted by, the Federal Arbitration Act.Continue Reading New Jersey bans NDAs and certain waivers of rights in agreements with employees

The NJ DOL has published the new mandatory notice that, by December 7, 2011, must be posted in a conspicuous location and distributed to all existing employees who work in New Jersey. In addition, ALL new employees hired in New Jersey on November 7, 2011 or after must be immediately provided with a copy of…