New Jersey Has Become The 1st State To Mandate Severance Pay For Mass Layoffs
Trenton, New Jersey- Mass layoffs suck and have become the reality for thousands of people who have dedicated their lives to working for one company. New Jersey has now become the first state in the nation to guarantee severance pay.
Jersey has taken steps that would protect the workers who down the line may be affected by these mass layoffs. Democratic Gov. Phil Murphy signed legislation on Tuesday that would require companies with 100 or more employees to pay them a week’s pay for each year of service.
If such events do occur the law was altered extending the minimum number of days notice to 90 days, a 30-day increase.
Democratic state Sen. Joe Cryan a co-sponsor of the measure had this to say about the new law.
“When these corporate takeover artists plunge the companies into bankruptcy they walk away with windfall profits and pay top executives huge bonuses, but the little guys get screwed.”
Cryan hopes this new legislation will make companies think twice before deciding mass layoffs are “their go-to solution for every problem.”
(Cover photo courtesy of Fox Business, video courtesy of CBS, source Fox)