Dec 2024

NEW JERSEY’S SERVICE WORKERS RETENTION ACT: A Milestone for Residential Service Sector By Joe Vitorino & Robert Francis, Planned Companies

“This pioneering legislation...is set to reshape the landscape of employment within the service sector...”

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O n July 24, 2023, New Jersey marked a sig nificant advancement in labor rights with the enactment of the Service Workers Retention Act, which became enforceable on October 24, 2023. This pioneering legislation, second only to a similar mandate in New York, is set to reshape the landscape of employment within the service sector, particularly in residential settings, though its influence will likely extend to commercial offices, healthcare facilities, airports, warehouses, and educational institutions. The essence of the law (S2389/A4682) lies in its pro tective measures for building service personnel. It mandates that employees stationed at a site for at least 16 hours a week and with a tenure of 60 days or more must be offered continued employment for a period of 60 days following a change in contractor or ownership. This applies to properties with 50 units or more and covers a range of service personnel including janitorial staff, maintenance technicians, and security guards, among others, excluding managerial and professional roles.

Operational Implications and Compliance Steps The Act outlines specific protocols for both the existing and incoming entities to adhere to when a change in a contractor (i.e. service provider) or owner occurs. Prior to a transition, the current owner or contractor must inform the workforce in writing at least 15 days before the change over, with additional notices placed in common areas. This communication must include the contact details of the new entity or successor contractor, who, in turn, is obligated to engage with the existing employees, offering them the opportunity to continue their roles under new terms. New and Existing Owners/Contractors: For existing owners, under the new guidelines a written notification detailing the impending transition must be communicated to the existing workforce by the current ownership at least 15 days before the scheduled change. This notice should also be visibly posted in common areas where employees typically gather, such as break rooms. Additionally, the incoming entity, be it the new owner or successor contractor, is required to furnish the existing staff CONTINUES ON PAGE 30

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DECEMBER 2024