Dec 2024

SERVICE WORKERS RETENTION ACT... from page 28.

ing pay rates and benefits, which must be communicated to the employees through a written offer. This offer must be available in all languages spoken by at least 10% of the workforce, including detailed contact information of the suc cessor company and a primary contact person. Employees are to be given a minimum of 10 days to respond to this offer following its receipt. Key Observations and Recommendations The introduction of this law necessitates a strategic approach to compliance, putting a strong emphasis on the need for meticulous planning and execution. Its primary aim is to offer stability and security to employees during transitional phases, a sentiment echoed by New Jersey Governor Phil Murphy, who stated: “These protections will offer many hardworking employees the professional courtesy and stability they deserve during transitional peri ods.” Highlighting the importance of professional courtesy towards dedicated service workers. However, the legislation is not without its challeng es. It potentially complicates the process of addressing underperformance within the workforce, emphasizing the CONTINUES ON PAGE 32

with their contact details. They must also receive a com prehensive list of current employees, complete with their dates of hire and job classifications, and make concerted efforts to personally connect with and introduce themselves to these individuals. To facilitate these introductions, it’s rec ommended that the current owner provide a suitable space within the premises where these meetings can take place at times that are convenient for the staff. For new successors, under the new mandate the succes sor entity is obligated to engage with, assess, and main tain the current workforce for a period of 60 days, unless specific reasons such as justifiable cause or productivity standards necessitate a reduction in staff. In such cases, a seniority-based system must be employed for determin ing retention, with any necessary workforce reductions recommended to be deferred until after the initial 60-day period to minimize complications. Moreover, the successor is authorized to establish its own employment terms, includ

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DECEMBER 2024