In a significant stride towards ensuring worker rights and job security, New Jersey Governor Philip Murphy signed Assembly Bill 4682 into law. This groundbreaking legislation, set to take effect on October 22nd, introduces a host of employment protections aimed at safeguarding the interests of specific “service employees” during ownership changes. This legislation is poised to bring about transformative changes in the landscape of employment rights within the state.
Defining Service Employees
Under the provisions of this new law, a “service employee” is clearly defined as an individual employed or assigned to a covered location for at least 60 days. It excludes managerial or professional employees and those regularly scheduled for less than 16 hours per week. The scope of the law covers various occupations, including:
- Care and maintenance of buildings or properties
- Passenger-related security services at airports
- Food preparation services at educational institutions
It also excludes individuals involved in construction projects requiring municipal permits.
Covered Locations
The law applies to specific covered locations, whether publicly or privately owned. These include the following:
- Multifamily residential buildings with more than 50 units
- Large commercial centers or office complexes
- Schools and institutions
- Cultural centers
- Industrial sites
- Airports
- Hospitals
- State courts
- Distribution centers
Key Provisions
This new law introduces several crucial changes to employment practices:
- Transition period: It reduces the transition period from 90 to 60 days, during which a successor employer must retain affected service employees at a covered location.
- Just cause requirement: A successor employer cannot discharge a retained service employee without just cause during the 60-day transition period.
- Notification: Covered entities must provide written notice to service employees, collective bargaining representatives, and affected work sites 15 days before terminating a service contract or selling/transferring property.
- Successor employer obligations: Successor employers must make a written offer of employment to affected service employees, retain them for 60 days or until the service contract is terminated (whichever is earlier), and adhere to seniority-based retention and preferential hiring.
- Collective bargaining agreement exception: If a successor employer agrees to the collective bargaining agreement of the awarding authority or contractor before the service contract termination, this law does not apply.
Enforcement And Penalties
Employers should take note of the significant penalties associated with non-compliance. Violations may result in fines of up to $2,500 for the first offense and up to $5,000 for subsequent violations. Each week of violation is considered a separate offense.
Compliance And Employment Law Expertise
For small businesses navigating the complex landscape of New Jersey’s evolving labor laws, the role of a professional employer organization (PEO) becomes increasingly vital. As the state ushers in these progressive employment protections, PEOs offer a lifeline to businesses by providing expert guidance and support in ensuring compliance. By partnering with a PEO, small businesses can leverage the collective expertise and resources to seamlessly manage the intricacies of employment law, including the newly established protections for service employees. With a PEO like GMS by your side, businesses can confidently navigate these changes while focusing on what they do best – driving growth and success in New Jersey’s dynamic business environment. Contact us today to learn more!