Yes. If you are a covered New Jersey employee who is terminated in a mass layoff according to the conditions set forth in the New Jersey WARN Act, you are entitled to severance pay. Generally, NJ employers are not required to give severance pay to terminated workers unless there is a contractual term between the employer and worker that stipulates the conditions and rate of pay. If there is a collective bargaining agreement (CBA) that stipulates the conditions for severance, then severance must be paid according to the terms of the CBA.
However, in the case of a mass layoff in New Jersey, NJ workers are entitled to severance pursuant to the terms in the New Jersey WARN Act, N.J.S.A. § 34:21-1, et seq. If there is a difference between the amount of severance due under the NJ Warn Act and the CBA, whichever amount is higher shall be paid.
If your employer has discriminated against you, you should contact this law firm today for a free consultation. I accept cases from all over NJ and have locations in Southern, Central and Northern NJ to meet with clients. Employment/Civil Rights Law. If you are experiencing such discrimination, you should contact this office immediately at 201 599-9600 for a free consultation.
The New Jersey Worker Adjustment and Retraining Notification, acronym of “WARN” Act, N.J.S.A. § 34:21-1, et seq., was officially titled the "Millville Dallas Airmotive Plant Job Loss Notification Act," and it was significantly amended to require 90 days' notice and severance pay for covered NJ employees.
For NJ Warn Act to apply, how many employees are required, how much notice must be given to them, and how many employees must be terminated in a transfer, termination of operations, mass layoffs?
There must be a termination of employment of 50 or more employees. According to § 34:21-2, it states, in part, if an establishment is subject to a transfer of operations or a termination of operations which results, during any continuous period of not more than 30 days, in the termination of employment of 50 or more employees, or if an employer conducts a mass layoff, the employer who operates the establishment or conducts the mass layoff shall:
a. Provide, in the case of an employer who employs 100 or more employees, not less than 90 days, or the period of time required pursuant to the federal “Worker Adjustment and Retraining Notification Act,” .... before the first termination of employment occurs in connection with the termination or transfer of operations, or mass layoff, notification ........each employee whose employment is to be terminated and any collective bargaining units of employees at the establishment.
How Much Severance Do Covered Employers Have to Pay to Covered Employees?
Under 34:21-2 b), it states, in part, that the employer must provide to each employee whose employment is terminated severance pay equal to one week of pay for each full year of employment.
If the employer provides any employee with less than the number of days of notification required pursuant to subsection a. of this section, the employer shall provide that employee with an additional four weeks of pay.
The rate of severance pay provided by the employer pursuant to this subsection b. shall be the average regular rate of compensation received during the employee’s last three years of employment with the employer or the final regular rate of compensation paid to the employee, whichever rate is higher.
Severance under this subsection shall be regarded as compensation due to an employee for back pay and losses associated with the termination of the employment relationship, and earned in full upon the termination of the employment relationship, notwithstanding the calculation of the amount of the payment with reference to the employee’s length of service.
An employer shall provide an employee the severance pay required pursuant to this subsection b. or any severance pay provided by the employer pursuant to a collective bargaining agreement or for any other reason, whichever is greater.
What is a covered “Termination of employment” under the Act?
“Termination of employment” means the layoff of an employee without a commitment to reinstate the employee to his previous employment within six months of the layoff.
Exceptions:
One exception is that “termination of employment” shall not mean a voluntary departure or retirement. A second exception is a discharge or suspension for misconduct of the employee connected with the employment. Another exception is any layoff of a seasonal employee in any situation in which an employer offers to an employee, at a location inside the State and not more than 50 miles from the previous place of employment, the same employment or a position with equivalent status, benefits, pay and other terms and conditions of employment
What Work Establishments Are Covered?
“Establishment” means a place of employment which has been operated by an employer for a period longer than three years, but does not include a temporary construction site. An “establishment” may be a single location or a group of locations, including any facilities located in this State.
How Does the Act Define “Termination of Employment”?
Termination of employment” means the layoff of an employee without a commitment to reinstate the employee to his previous employment within six months of the layoff.
Exception: “termination of employment” does not include a voluntary departure or retirement or a discharge or suspension for misconduct of the employee connected with the employment or any layoff of a seasonal employee or refer to any situation in which an employer offers to an employee, at a location inside the State and not more than 50 miles from the previous place of employment, the same employment or a position with equivalent status, benefits, pay and other terms and conditions of employment.
What qualifies as a “Termination of Operations”?
“Termination of operations” means the permanent or temporary shutdown of a single establishment, or of one or more facilities or operating units within a single establishment, except that “termination of operations” shall not include a termination of operations made necessary because of a fire, flood, natural disaster, national emergency, act of war, civil disorder or industrial sabotage, decertification from participation in the Medicare and Medicaid programs
What qualifies as a “Transfer of Operations”?
“Transfer of operations” means the permanent or temporary transfer of a single establishment, or one or more facilities or operating units within a single establishment, to another location, inside or outside of this State.
What qualifies as “Mass Layoff” under the Statute?
A mass layoff under § 34:21-1, means a reduction in force which is not the result of a transfer or termination of operations and which results in the termination of employment at an establishment during any 30-day period for 50 or more of the employees at or reporting to the establishment.
Exceptions: A “mass layoff” shall not include a mass layoff made necessary because of a fire, flood, natural disaster, national emergency, act of war, civil disorder or industrial sabotage, decertification from participation in the Medicare and Medicaid programs.
Whether or not you are an employee to be terminated under the cover of the NJ WARN Act, you have certain legal rights as an employee. Employee Performance Evaluations must be utilized by employers in a manner that is not discriminatory. See NJ Employment Attorney, Is My Employer Discriminating with a Performance Improvement Plan, a PIP?
Illegal biases may influence and downgrade a supervisor’s perception of the quality of an employee’s work based on race, sex, age or other protected characteristic. New Jersey Race Discrimination Lawyer. Government statistics indicate that there has been a rise in age discrimination claims. See 06/02/2025 NJ Employment Attorney, Older Chief Executives and Senior Executives Fired Due to Age
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I have represented employees who were illegally discriminated against by their employers, and was successful in recovering financial compensation for their emotional pain and suffering and moneys for lost wages, both for past lost wages and projected future lost wages. If you think you are being discriminated against, you should contact this office immediately for a free consultation. I accept discrimination and whistleblower cases from all over New Jersey and have locations in Southern, Central and Northern NJ to meet with clients.
Contact Hope A. Lang, Attorney at Law today for a free consultation.
Hope A. Lang, Attorney at Law represents workers throughout the entire state, including Hackensack, Jersey City, Newark, Irvington, Orange, East Orange, Trenton, Paterson, Montclair, Elizabeth, North Brunswick, Cherry Hill, Vineland, Union, Plainfield, Hamilton Township, Lakewood, Edison, Parsippany-Troy Hills, Franklin, Lakewood, and every NJ County, including Bergen, Hudson, Middlesex, Essex, Monmouth, Somerset, Ocean, Union, Camden, Passaic, Morris, Gloucester, Atlantic, Burlington, Camden Counties.