December 1, 2022

Trenton – In an effort to improve employment protections for service employees, the Senate Labor Committee today advanced legislation sponsored by Senator Troy Singleton and Senator Andrew Zwicker to establish employment protections for certain service employees during changes of ownership.


The bill, S-2389, would require any employer that enters into a service contract or subcontract with service employees to undertake certain actions to protect the employees in the event of a transfer of a service contract from one employer to another.


“When ownership of service contracts changes, employees and their needs can often be forgotten. It is important to ensure that employees have job stability, even in transitions of management,” said Senator Singleton (D- Burlington). “We are coming off of the heels of a pandemic that catalyzed mass layoffs across the board. This bill will protect employees and their jobs, easing any anxiety that may arise when ownership changes, and will lay out the provisions that will be afforded to service employees.”


Under the bill, at least 15 days before terminating or transferring any service contract, an outgoing employer would be required to notify a succeeding employer of the name, date of hire, and job classification of each service employee and the employee’s collective bargaining representative. The outgoing employer would also be required to provide notice of the impending transfer, including the contact information of the new employer, and the date by which the employee would be required to accept the new offer of employment.


“Statewide, New Jersey workers employed by building-service contractors have no legal right to keep their jobs if the contractor changes and the incoming contractor decides not to retain the existing workforce,” said Senator Zwicker (D-Hunterdon/Mercer/Middlesex/Somerset). “This legislation would make service employee contracts more transparent to employees and make certain that contractors ensure the stable transfer of service employees.”


The bill was released from committee by a vote of 3-2.