They exceeded the 50 employee layoff in NJ and failed to file the appropriate paperwork with the state.
As a result, they’ve advised employees who were scheduled to be laid off in 2 weeks, that they will be on payroll for another 3 months.
The best part is, the additional 3 months still does not satisfy the law. So why don’t they file with the state?
The company must now pay 1 week for every year of service in addition to 4 additional weeks pay.
“No, simply keeping employees on payroll for an additional 3 months (or any period) does not satisfy or cure a failure to file/provide the required NJ WARN notice.
Under New Jersey’s amended Worker Adjustment and Retraining Notification (NJ WARN) Act (effective since April 10, 2023, with key changes from 2020 legislation), employers must provide 90 days’ advance written notice of a covered mass layoff, termination of operations, or transfer of operations. This notice must go to affected employees, their collective bargaining representatives (if any), the chief elected official of the municipality, and the Commissioner of the New Jersey Department of Labor and Workforce Development (via specific forms and methods).
The law does not allow “pay in lieu of notice” as a substitute for providing the actual advance notice. Unlike some interpretations of federal WARN (which imposes back pay liability for the violation period but doesn’t explicitly prohibit pay-in-lieu alternatives in practice), NJ WARN is stricter in structure:
• The primary requirement is advance written notice (90 days) to allow employees time to prepare, seek new work, or access retraining.
• If an employer fails to provide the full 90 days’ notice (or any required notice), the penalty is not avoided by paying extra wages or keeping people on payroll longer. Instead, each affected employee is entitled to:
◦ Mandatory severance (one week of pay per full year of service, calculated at the higher of their average rate over the last three years or final regular rate) — this applies regardless of whether notice was given.
◦ An additional four weeks of severance pay as a specific penalty for the notice failure (this extra four weeks is not prorated for partial notice; it’s all-or-nothing if the full 90 days isn’t provided).
Keeping employees on payroll longer might reduce some practical harm (e.g., they continue earning wages and benefits), but it does not fulfill the statutory notice obligation or eliminate the employer’s liability for the additional four-week severance penalty. The law emphasizes actual advance notification, not just compensation.
Federal WARN (which NJ WARN builds on but exceeds) similarly requires 60 days’ notice with no explicit provision for pay-in-lieu as a complete substitute, and violations trigger back pay liability up to 60 days.
If a company is in this situation, the best course is usually to:
• Provide as much notice as possible immediately (even if short).
• Pay the mandatory severance plus the four-week penalty if notice was deficient.
• Consult employment counsel, as employees cannot waive these rights without state or court approval, and claims can be pursued individually or collectively.
For the official statute text and filing details, see the NJ Department of Labor site (nj.gov/labor) or the 2023 amendments PDF. This is not legal advice—specific cases depend on facts like employer size (100+ employees nationwide), number affected (50+ in NJ), and exact triggers.”