Governor Phil Murphy today signed a bill to protect service workers from a sudden and unexpected loss of employment due to a change in ownership where they work. This legislation will provide important employment protections and peace of mind for many New Jersey service employees.
“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,” said Governor Murphy. “These protections will offer many hardworking employees the professional courtesy and stability they deserve during transitional periods.”
The bill (A-4682/S-2389) establishes employment protections for non-managerial/professional service employees who have been working at an eligible location on a full or part-time basis at least 16 hours per week for 60 or more days in connection with either:
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; or
food preparation services at a primary, secondary, or post-secondary school.
The law requires current employers to notify bargaining representatives and post a notification at the job site about the upcoming change in property ownership at least 15 days in advance. The employer must also share information about the service workers with the new employer and information about the new employer with the current service workers.
Upon taking over ownership, new employers must retain the covered service employees for at least 60 days or until the employees’ existing contract comes to an end – whichever comes first – except in instances where the employer: finds that fewer service employees are needed to perform the work than had been employed; retains service employees by seniority within each job classification; maintains a preferential hiring list of the employees that were not retained; and hires any additional service employees from that list, in order of seniority, until all affected service workers have been offered the opportunity for employment.
New employers cannot reduce service workers’ hours in order to circumvent these protections and cannot otherwise fire the covered employees without just cause during that 60 day period.
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, warehouses, and certain hospitals and nursing homes.