New Jersey’s First-in-Nation Severance Mandate Draws ERISA Suit

A recent amendment to New Jersey labor laws mandating severance payments for workers affected by mass layoffs is unenforceable because it’s preempted by the federal Employee Retirement Income Security Act, according to a lawsuit filed Thursday by a trade group advocating for nationally uniform benefit plan standards.

The ERISA Industry Committee (ERIC) wants a federal judge in New Jersey to halt enforcement of recent amendments to the state’s Millville Dallas Airmotive Plant Job Loss Notification Act, which are scheduled to go into effect in November. These worker-friendly amendments, signed by Gov. Phil Murphy (D) in January, made New Jersey the ...