On December 20, 2007, Governor Corzine signed into law the Millville Dallas Airmotive Plant Job Loss Notification Act (“Millville Dallas Act”) (named after a large facility that closed in 2004 leaving hundreds without jobs). This is New Jersey’s version of the federal WARN Act, and resembles federal law in many respects. Like the federal WARN Act, the Millville Dallas Act covers employers of 100 or more employees and requires at least 60 days’ notice prior to a mass reduction in force (affecting 500 or more full-time employees; or as few as 50 full-time employees if the number represents one-third or more of the workforce); a transfer of operations resulting in termination of at least 50 full-time employees within a 30-day period (temporary or permanent, within New Jersey or outside the state); or a cessation of operations resulting in termination of at least 50 full-time employees within a 30-day period (temporary or permanent).

For purposes of the Millville Dallas Act, a facility is not an “establishment” unless the entity has operated it for more than three years (thereby excluding temporary construction sites). If a termination of operations is due to fire, flood, natural disaster, national emergency, act of war, civil disorder or industrial sabotage, the notice requirement does not apply (curiously, these exceptions do not expressly apply to transfers of operations or reductions in force due to the same causes). Unlike the federal WARN Act, there is no exception in the Millville Dallas Act for unforeseeable business circumstances. Nor is there any exclusion when the sale of a business underlies the transfer or termination of operations or layoffs.

The required notice must be given to affected employees, collective bargaining units, the Commissioner of Labor and the chief elected official of the municipality where the closing or layoff is to occur. Such notice must include:

• the number of employees whose positions will be terminated and the date on which the contemplated action (transfer, termination or layoffs) will occur;
• the reason(s) for the contemplated action;
• a statement containing specific information with respect to any employment available to employees at other establishments operated by the same employer;
• a statement of employee rights with respect to wages, severance pay and other benefits;
• disclosure of the amount of severance pay payable as penalty for failure to meet the 60-day notice requirement;
• a statement of employee rights to receive information, referral and counseling from the Department of Labor and Workforce Development response team.

The Millville Dallas Act carries significantly steeper penalties for noncompliance than its federal counterpart. Where the WARN Act requires payment of one day of back pay to each affected employee for each day of violation (each day short of 60 days’ notice), the Millville Dallas Act requires the payment of one week’s severance pay (in addition to any severance pay to which each employee is otherwise entitled) to each affected employee for each year of service for any employer that provides less than the 60 days’ required notice. In other words, if an employer gives 59 days’ notice or less, that employer would be liable for the full severance pay penalty.

Because the Millville Dallas Act is considerably less detailed than the federal WARN Act, employers may face uncertainty when trying to comply with the New Jersey Act. Where there is no material difference between the state and federal laws it is likely that the Millville Dallas Act will be interpreted in accord with the federal law.