Navigating the employment landscape can be challenging, especially when you face unexpected circumstances like layoffs. If you are an employee in New Jersey and have recently been laid off, understanding your rights to severance packages can provide comfort and financial stability during this difficult time.
Effective in 2023, a new law has been enacted in New Jersey that entitles certain employees who lose their jobs to severance pay. However, it is essential to note that this law does not apply to every employee and employer. The entitlement to severance pay is specifically targeted at people who lose their jobs due to mass layoffs or transfer or termination of operations, resulting in at least 50 employees who report to work at a single facility losing their jobs within 30 days.
Furthermore, companies with at least 100 employees must provide covered employees at least 90 days’ notice before their layoff becomes effective. This new regulation aims to protect workers from sudden unemployment and give them a safety net to navigate their next steps.
Understanding Severance Packages
A severance package is a group of optional benefits an employer provides to an employee being laid off. These benefits often include continued salary payments for a certain period, health insurance, and possibly other perks, depending on your employer’s policies and employment contract terms.
Typically, the law does not require severance packages, and employers offer them voluntarily. However, under the newly enacted New Jersey law, eligible employees are entitled to severance pay from their employers.
How Severance Works Under the New Law
Under New Jersey law, if you are part of a mass layoff, your employer must provide you with severance pay equal to one week for each full year of employment. This is in addition to any other pay or benefits you may be entitled to receive.
For instance, if you have been with the company for 10 years, you would be entitled to 10 weeks’ pay as severance. This provides a significant financial cushion that can help ease your transition to new employment.
Remember, this law applies only under specific circumstances – mass layoffs, transfers, or termination of operations impacting at least 50 employees at a single facility within 30 days. Therefore, it may not apply if you lose your job under different circumstances.
Our South Jersey Employment Lawyers at The Law Offices of Leo B. Dubler, III, LLC Can Protect Your Rights to Severance Pay
Understanding your rights when laid off can be complex and overwhelming. However, you do not have to navigate these waters alone. Speak with our South Jersey employment lawyers at The Law Offices of Leo B. Dubler, III, LLC today. Call 856-235-7075 or contact us online to schedule your free consultation. Located in Mount Laurel and Atlantic City, New Jersey, we proudly serve clients in South Jersey, including Cherry Hill, Burlington County, and Camden County.