By: Nisha S. Talati, Esq. and Ty Hyderally, Esq.

            Recently, Governor Phil Murphy signed a bill to protect service workers from unexpected loss of employment due to a change in ownership where they work. See https://www.nj.gov/governor/news/news/562023/20230724b.shtml. This particular bill creates employment protections for non-managerial/professional service employees who have been working in an eligible location either on a full or part-time basis for at least sixteen hours per week for sixty or more days. The work must be in connection with the care or maintenance of a building or property, passenger related security services, in-terminal and passenger handling, cleaning services at an airport, or food preparation services at a primary, secondary, or post-secondary school. Furthermore, employers are required to inform bargaining representatives and announce at their job site about any change in ownership at least fifteen days in advance. The employer must also share the information about the service workers with the new employer and vice versa.

New employers must keep the service employees for at least sixty days or until the employees’ current contract comes to an end, whichever comes first. But a few exceptions to this rule may apply. First, when an employer finds that fewer service employees are needed to perform the work than had been previously employed, they may lay off the covered service employees. Second, if the new employer retains service employees by seniority within each job category or if they maintain a preferential hiring list of employees that were let go, then they may lay off other covered service employees. Lastly, if the new employer hires any additional service employees from the above list, in order of seniority, until all affected workers have been given the opportunity for employment, then they may lay off other service employees. It is important to note that new employers may not reduce the workers’ hours in order to bypass these protections and also may not fire the covered employee without just cause during the sixty-day period.

With this bill, New Jersey demonstrates their dedication to protecting the rights and job security of workers. This is a victory for service workers in New Jersey who experience unexpected loss of employment if the ownership of their work changes control.

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