Challengers to New Jersey Severance Pay Law Lack Standing (1)

An industry group claiming its members would be harmed by New Jersey’s mandated severance law isn’t in a position to sue about it, a federal judge decided Thursday.

The Employee Retirement Income Security Act Industry Committee, also known as ERIC, sued in the US District Court for the District of New Jersey alleging that it had to divert time, money and resources to educating its member companies about the state’s severance law. ERIC represents large employers with employee benefit plans.

The law, S.B. 3170, requires employers laying off more than 50 employees to pay one week of severance for every ...