TRENTON, N.J. (AP) — New Jersey Gov. Phil Murphy’s office says his state has become the first in the nation to guarantee severance pay for mass layoffs.
Murphy signed legislation Tuesday that requires companies with 100 or more full-time employees to pay them a week’s pay for each year of service during a mass layoff, plant closing or transfer resulting in 50 or more workers losing their jobs.
The law also increases the minimum number of days notice from 60 to 90 for such events.
The legislation was motivated by last year’s closing of Toys R Us, which cost 2,000 employees their jobs in New Jersey.