New Jersey law aims to protect healthcare workers' jobs during ownership changes

New Jersey Gov. Phil Murphy signed a bill Aug. 18 establishing job security measures for healthcare workers whose systems are undergoing leadership change.

The law — which applies to sales, transfers, consolidations, mergers and reorganizations — requires new nongovernmental healthcare entity employers to offer all eligible employees continued employment for at least four months after control is transferred, according to an Aug. 18 news release from the governor's office. New employers must present employees with a written contract confirming no reduction in wages, paid time off or benefits value. 

The new employer cannot let employees go during this transitional period. When the four months have expired, the employer must conduct a written performance review of each retained employee and offer to keep those with satisfactory reviews. 

"With this law, we will eliminate the uncertainty many healthcare workers face during transfers of ownership by implementing the wage, benefit and employment protections these dedicated employees deserve," Mr. Murphy said in the release.

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