New Jersey Governor Phil Murphy signed a new law on July 24 that was designed to increase protections for service workers when a change in ownership occurs at their place of work.

The “Service Worker Retention Law” (S2389/A4682) mandates that once there is a change in the contract service provider, the successor employer is required to continue to employ the service workers (also referred to as “service employees”) at that location for an additional 60 days. “Service employee” is defined as “an individual employed or assigned ... on a full or part-time basis for at least 60 days and who is not a managerial or professional employee or regularly scheduled to work less than 16 hours per week.”

There are nine broad categories of locations to which the new law will apply, which includes multi-family residential buildings with more than 50 units; office buildings of greater than 100,000 square feet; primary and secondary schools; airport and train stations; healthcare provider locations; state courts; and warehousing or distribution centers, among others. Some of the jobs to which this law covers include 1) in reference to the care or maintenance of a building or property; security guard; janitor; maintenance employee; elevator operator; window cleaner, and 2) individuals who work in security, cargo related and ramp services, and cleaning services at an airport; and 3) food preparation workers at primary or secondary schools.

Affected employees must receive written notice at least 15 days before the change, and written notice must be posted at any affected worksite. During the 60-day window, successor employers retain the right to terminate a service worker only upon a finding of just cause — although just cause is not defined in the law.

The law provides an exemption that the successor employer may avoid these requirements in the event it agrees to assume to be bound by a collective bargaining agreement already in place, so long as the agreement contains terms and conditions for the discharge or laying off of employees.

This new law imposes additional burdens on employers whenever they take control of any affected jobsite. Should an employer violate this law, there are significant penalties.

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