New Jersey ‘Service Workers’ Get More Layoff Protections Under New Law

NEW JERSEY — Service workers in New Jersey will have some powerful new protections against layoffs when a new owner takes over their workplace under a state law signed this week.

On Monday, Gov. Phil Murphy signed A-4682/S-2389, which has been dubbed the “Worker Retention Law.” It beefs up job protections for workers such as janitors, security staff, airport workers and school food employees.

According to Murphy’s office, when a new owner takes over a company that uses “service workers,” they must retain all eligible employees for at least 60 days, or until the employees’ existing contract comes to an end – whichever comes first.

New employers aren’t allowed to cut workers’ hours in order to get around these new protections, and they can’t fire the covered employees without just cause during the 60-day period.

There are a few exceptions, the governor’s office noted. Employers will be able to lay off workers if they find that fewer service employees are needed to perform the work than had been on the payroll, or if they keep a “preferential hiring list” based on seniority for employees that were let go.

The owner selling the company must notify the workers’ bargaining representatives and post a notice at the job site about the upcoming change in ownership at least 15 days in advance. The employer must also share information about the service workers with their new boss, as well as information about the new owner with the current workers.

Non-managerial workers must have been employed at an eligible location for at least 16 hours per week for 60 or more days to qualify. Their job duties must involve:

• the care or maintenance of a building or property
• passenger related security services, cargo related and ramp services, in-terminal and passenger handling, and cleaning services at an airport
• food preparation services at a primary, secondary, or post-secondary school

The bill applies to locations such as multi-family residential buildings with more than 50 units, large commercial and office buildings/complexes, schools, cultural centers, industrial sites, pharmaceutical labs, airports, train stations, state courts and warehouses, as well as some hospitals and nursing homes.

“Service employees should not have the rug pulled out from under them for circumstances outside their control that have nothing to do with their job performance,” Murphy said.

“These protections will offer many hardworking employees the professional courtesy and stability they deserve during transitional periods,” the governor added.

CRITICS: ‘IMPRACTICAL AND BURDENSOME’

Some pro-business groups, including the New Jersey Business and Industry Association (NJBIA), have said the new law will make it “impractical and overly burdensome” for an employer to change service contracts.

It’s a matter of rights, according to NJBIA President and CEO Michele Siekerka.

“This law unfortunately imposes the most far-reaching iteration of employee retention mandates to date in New Jersey and unfortunately could result in significant health and safety implications for our residents, employees and employers,” Siekerka said.

Here’s what it means in “layman’s terms,” she said:

“If Company A contracts with ABC Cleaning Service to clean their facility and ends that contract to hire XYZ Cleaning Service instead, the XYZ Cleaning Service will be mandated to assume ABC Cleaning Service’s employees for 60 days.”

“As evident by this example, successor employers will be mandated to hire another vendor’s employees regardless of whether the original vendor had other work assignments for those employees, if the successor employer had their own employees to bring on to the job whose employment status may now be at risk, or if the covered location contracting for service work was dissatisfied with the job being done by the previous vendor’s employees,” Siekerka said.

“We believe our businesses deserve the freedom to make operational decisions for the betterment, and sometimes survival, of their business,” Siekerka concluded. “This law effectively takes that right away. Our businesses deserve better than lawmakers dictating how they choose to run their operations.”

SUPPORTERS: ‘THIS IS NO WAY TO LIVE’

Workers rights advocates and union leaders are singing a different tune about the new law, however.

According to 32BJ SEIU – which helped to organize rallies and letter-writing campaigns in the months leading up to Monday’s bill signing – the “groundbreaking” new law makes New Jersey the second state in the United States to offer these types of job protections.

Similar laws have also been rolled out on the local level, the union noted. At least 25 jurisdictions have adopted worker retention policies nationwide, including Newark and Hoboken in New Jersey.

• See Related: Newark Ordinance Gives Protection To Janitors, Security Officers

“Every time a contract changes hands we go through the stress of possibly losing our jobs – this is no way to live,” said Tiffany Green Hayward, a food services worker in Plainfield.

“Workers need job security and when a contractor changes hands it robs them of this security,” agreed Marilyn Mars, a security officer who works in Newark. “We need laws that protect workers – particularly in times like the pandemic or a state of emergency.”

Other support for the new law came from:

Robert Asaro-Angelo, commissioner of the New Jersey Department of Labor and Workforce Development – “Service workers should not be immediately out of a job, at no fault of their own and without warning, when a work site changes hands. With this law, New Jersey once again proves its dedication to protecting our workforce and ensuring workers are treated with the respect and dignity they deserve.”

Sen. Troy Singleton – “When ownership of service contracts changes, employees and their needs can often be forgotten. It is important to ensure that employees have job stability, even in transitions of management. We are coming off of the heels of a pandemic that catalyzed mass layoffs across the board. This law will protect employees and their jobs, easing any anxiety that may arise when ownership changes, and laying out the provisions that will be afforded to service employees.”

Assemblywoman Britnee Timberlake – “This legislation will serve as a protective measure for service employees during periods of transition. With this law, we are affirming our commitment to safeguarding the rights and livelihoods of service employees in our state, and helping to build a more equitable and just future all employees.”

Sen. Andrew Zwicker – “Statewide, New Jersey workers employed by building-service contractors have no legal right to keep their jobs if the contractor changes and the incoming contractor decides not to retain the existing workforce. This legislation would make service employee contracts more transparent to employees and make certain that contractors ensure the stable transfer of service employees.”

Assemblyman Gary Schaer – “Employees in New Jersey should not have to worry they might lose their jobs overnight if a change of ownership occurs. During periods of transition, it is important that we prioritize the needs of our workforce and give them peace of mind during uncertain times. This law will better protect service employees, ensuring they have more job stability when ownership of a contract changes.”

Assemblyman Joe Danielsen – “With the signing of this bill, we are protecting the rights and job security of workers in our state. Nobody should have to worry about losing their job without due notice. During times of ownership changes, this law will ensure that service employees are treated with fairness and respect.”

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