New Jersey Lawmakers Establish Employment Protections for Certain Service Employees During Changes of Certain Service Employees During Changes of Ownership
11/1/2023 | Articles & Alerts
On July 24, 2023, New Jersey Governor Phil Murphy signed into law a bill governing the retention of certain service employees and supplementing Title 34 of the State’s Revised Statutes. Most importantly, the legislation, known as the “Service Worker Retention Law” (A-4682/S-2389), imposes affirmative duties on buyers and sellers of various types of real estate who are parties to qualifying contracts entered into or renewed on or after October 22, 2023.
While also applicable to other situations, as it relates to a purchase and sale transaction, the bill requires a seller and service contractors to provide the buyer with detailed information regarding the service employees engaged at the property and the buyer is required to offer employment to the service employees for not less than 60 days. The bill does not dictate the terms of the offer, but an offer must be made. There are various exceptions to the requirement to offer employment and only certain properties and certain types of employees are covered. The bill prescribes the penalties and other remedies to which a seller and buyer may be subject in the event the law is violated.
If you would like to schedule a time to discuss this legislation in greater detail to determine how it may affect your business, please feel free to contact us.
Related Practices: Business and Corporate Law