New Jersey Enacts Baby WARN Act With Important Differences from the Federal WARN Act and Stiffer Penalties

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New Jersey has joined a growing number of states that have enacted their own plant closure and mass layoff notification laws that supplement the federal Worker Adjustment and Retraining Notification (WARN) Act. New Jersey’s new law is called the Millville Dallas Airmotive Plant Job Loss Notification Act (the New Jersey Act), and became effective on December 20, 2007. While modeled generally after the federal law, the New Jersey Act contains several important differences—including significantly greater penalties in the form of extended severance obligations—that any entity engaging in a closing, transfer, or other significant reduction in force (RIF) in New Jersey must now carefully consider.

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