What Is the NJ WARN Act?

The New Jersey Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN) expands part of the Federal WARN Act by requiring notice even when the employment losses result from a sale of a business.

While the Federal WARN Act includes exemptions for faltering businesses, unforeseen circumstances, strikes or lockouts, these exemptions are not specifically set forth in the NJ WARN Act.

The NJ WARN Act contains strict provisions with respect to job transfer circumstances. Both WARN Acts will not count as “employment losses” those situations in which an employer offers to transfer an employee within reasonable distance to another position that has the equivalent status and pay. However, under the NJ WARN Act, that transfer opportunity must also be located within the state.

In addition to liability for back pay and benefits, employers violating the NJ WARN Act face a special penalty of one week’s severance pay for each of the employee’s years of service to the employer. Employees may also file a private suit to obtain compensatory damages, reasonable attorneys’ fees, and costs under the NJ WARN Act.