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New Jersey's Service Employee Legislation: Implications for Management Companies in Service Employee Transitions

By William Rodriguez, Esq. May 14, 2024 Posted in Landlord/Tenant Law

Recently, the New Jersey Legislature passed Assembly Bill No. 4682, which was designed to safeguard service employees during changes in ownership. The law applies to various service locations including multi-family residential buildings with more than 50 units, large commercial centers, educational institutions, and more. Management companies overseeing these properties need to be particularly mindful of the new requirements.

This legislation is aimed at non-managerial employees who work less than 16 hours per week and have been with the company for at least 60 days. The bill specifically addresses workers such as maintenance staff, cleaning crews, passenger service personnel, and food preparation staff in schools, among other crucial service roles.

At least fifteen (15) days before any changes in service contracts or property ownership, management companies (acting as awarding authorities) must ensure that the current contractors provide comprehensive details about service employees to the successors. This includes names, job classifications, dates of hire, and contact information of collective bargaining representatives if applicable.

Successor employers are required to retain service employees for a sixty (60)-day transition period following a change in ownership or service contract unless there are valid reasons for reductions. It is critical for management companies to communicate these changes effectively, ensuring that service employees are aware of their rights and the identity of the new employer.

If management companies or their contractors violate these provisions, affected employees can initiate legal action. Courts can impose fines up to $2,500.00 for a first violation and $5,000.00 for repeated violations, along with potential requirements for restitution and injunctive relief to correct the violations.

Management companies are pivotal in ensuring compliance with these enhanced protections for service employees. They play a crucial role in facilitating smooth transitions for service employees during changes in ownership or contractual management. This involves not only adhering to the legal requirements but also managing communications between old and new employers and the service employees themselves.

This legislation not only aims to protect the rights of service employees but also places significant responsibility on management companies to oversee these protections effectively. Management companies must ensure that all parties are informed and compliant to avoid legal repercussions and foster a stable work environment for service employees.




The information in this Client Alert is provided solely for information purposes. It should not be construed as legal advice on any specific matter and is not intended to create an attorney-client relationship. The information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular circumstances. Each legal matter is unique, and prior results do not guarantee a similar outcome.





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