In this series, we will explore some of the ways states vary from one another in their employment laws.

I previously wrote about how 13 states have their own mini-WARN Acts that require employers to provide advance notification to employees who will be impacted by a facility closure or mass layoff. In addition to notification requirements, two states actually require employers to pay severance to impacted employees.

In Maine, when an employer closes a facility with 100 or more employees or conducts a mass layoff — meaning a layoff of 50 or more employees if they make up at least 33% of the workforce, or a layoff of 500 or more employees — it must pay eligible employees a severance payment of one week for every year of employment. 

Employees are eligible for severance pay if they: 

• Have been continuously employed at the facility for at least three years.
• Have not been terminated for cause.
• Either remain employed at the facility or have not accepted employment at another or relocated facility operated by the employer.

New Jersey also requires severance pay for employees impacted by a facility closure or mass layoff. New Jersey employees are entitled to one week of pay for each full year of employment. Moreover, if a New Jersey employer fails to provide the employee with 90 days’ written notice of the facility closure or mass layoff, the employee is entitled to an additional four weeks of pay.

Failure to make the required severance payments may result in lawsuits and employers may be responsible for hefty fines in addition to back payments.