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SEVERANCE
LOSING YOUR JOB CAN BE A MAJOR FINANCIAL SETBACK
Losing a job is stressful enough without having to wonder whether your employer is treating you fairly on the way out. Severance agreements are complicated documents that waive significant legal rights, and many employees sign them without fully understanding what they are giving up. If you have been laid off or terminated in Newark, the Law Offices of Usmaan Sleemi can review your agreement, explain what you are giving up, and negotiate better terms. Call us today for a free consultation with an employment lawyer.
New Jersey’s Strong Severance Protections
New Jersey has some of the most protective severance laws in the country. Unlike most states, New Jersey mandates severance pay in certain mass layoff situations through the NJ WARN Act, formally known as the Millville Dallas Airmotive Plant Job Loss Notification Act. After significant amendments that took effect in April 2023, covered employers must provide 90 days’ written notice before a qualifying mass layoff and pay each affected employee one week of severance for every full year of service, regardless of whether proper notice was given. If an employer fails to provide the full 90 days’ notice, each affected employee is entitled to an additional four weeks of severance pay on top of that.
Severance under NJ WARN is calculated at the greater of the employee’s average compensation over the last three years or their final rate of pay, which can include bonuses and commissions. Critically, NJ WARN severance cannot be waived without approval from the NJ Commissioner of Labor and Workforce Development or a court order.
Newark’s economy spans healthcare, transportation, finance, and logistics, with major employers like NJ Transit, PSEG, and Horizon Blue Cross Blue Shield all potentially subject to NJ WARN when large-scale separations occur.
What to Watch for in a Severance Agreement
Outside of NJ WARN, most severance agreements are voluntary offers from an employer. That does not mean they are fair. A severance agreement is a legal contract, and signing it typically means releasing your right to sue for wrongful termination, discrimination, unpaid wages, or other claims. Before you sign anything, an attorney should review the document for the following:
- Release of claims language that may be overly broad or waive rights you did not intend to give up
- Non-disparagement and confidentiality clauses that could limit what you say about your employer
Employees over 40 are entitled to at least 21 days to consider a severance agreement under the Older Workers Benefit Protection Act, plus a 7-day revocation period after signing.
FAQs: Newark Severance Pay
Do I have to accept the first offer my employer makes?
No. Severance offers are often negotiable, especially for long-tenured employees or those with potential legal claims. An attorney can assess your leverage and push for a better outcome.
What if I already signed a severance agreement?
Depending on the circumstances and how much time has passed, you may have options. Agreements signed under duress or without adequate time to review can sometimes be challenged.
How do I know if my employer violated the NJ WARN Act?
If you were part of a layoff involving 50 or more employees and did not receive 90 days’ notice or mandatory severance, your employer may have violated the law. Contact our office to review the details.
Talk to a Newark Severance Pay Attorney
The Law Offices of Usmaan Sleemi helps Newark workers understand their rights and get the severance they have earned. Call (973) 866-9415 or contact us online to schedule a free consultation.