If a company has 100 or more employees, and

50 or more employees lose their jobs in a 30-day period,

At or reporting to a New Jersey location,

Why New Jersey Stands Out&nbsp;— The WARN Act

More notice — Employers in New Jersey have to give 90 days’ written notice before a mass layoff.

Mandatory severance — Unlike federal law, New Jersey requires employers to pay severance to affected employees.

Broader coverage — Remote and part-time employees can count toward the threshold, making it harder for companies to sidestep the law and use <a href="/blog/unfair-severance-negotiation-tactics-nj-employers-may-use">unfair severance negotiation tactics</a>.

Layoff Notice Requirements: 90 Days Instead of 60

The <a href="https://www.nj.gov/labor/aboutlwd/ourmission.shtml#:~:text=Rob%20Asaro%2DAngelo,in%20January%202018.">New Jersey Commissioner of Labor</a>

The mayor or chief official of the local municipality

One week of pay for every full year worked at the company.

Pay is based on whichever is higher — your average over the past three years or your final rate of pay.

If your employer failed to give the 90-day notice, you get an extra four weeks’ pay on top of that.

If your union contract or company policy promises more, you’re entitled to the higher amount.

What Employees Should Look For in a Severance Agreement

Is the math right? Double-check how many years you’ve worked and whether they calculated severance using the right pay rate.

Did you really get 90 days’ notice? If not, you should see an extra four weeks’ pay in there.

Are you giving up more than you realize? Many severance agreements come with a release of claims. That means you could be signing away your right to sue for discrimination or retaliation.

Are the confidentiality terms legal? In New Jersey, even if you <a href="/blog/non-disparagement-clauses-should-nj-employees-agree">agree to non-disparagement clauses</a>, those provisions cannot be used to stop you from speaking out about discrimination, retaliation, or harassment you may have experienced.

Older workers: If you’re 40 or older, federal law (<a href="https://www.eeoc.gov/history/older-workers-benefit-protection-act-1990#:~:text=the%20individual%20is%20given%20a%20period%20of%20at%20least%2021%20days%20within%20which%20to%20consider%20the%20agreement">the OWBPA</a>) requires special disclosures, longer review periods, and the right to revoke after signing.

What To Do If You’re Facing a Mass Layoff in New Jersey

Save copies of your notice, emails, and any communications from HR.

Keep your pay stubs and records of your years of service. These will help if there’s a dispute about severance amounts.

The right to report unlawful discrimination or harassment

The right to file a complaint with the <a href="https://www.eeoc.gov/">EEOC</a> or the <a href="https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/">New Jersey Division on Civil Rights</a>

The right to take part in government investigations

You’re being asked to sign away legal claims

You’re 40 or older and entitled to federal protections

The <a href="/blog/understanding-non-compete-clauses-in-nj-severance-agreements">agreement includes non-compete clauses</a> or other restrictive terms

You suspect the agreement contains unlawful provisions

Why Severance Agreements Matter in Layoffs

Protecting Yourself Legally During a NJ Mass Layoff

Legal Guidance on Severance Agreements During Mass Layoffs in NJ

Why Mergers Often Lead to Severance Negotiations

Job eliminations due to overlapping roles

New leadership deciding to change staffing strategies

Shifts in corporate culture or business priorities

If a company with 100 or more employees lays off 50 or more workers within 30 days as part of a mass layoff, closure, or relocation, it must give at least 90 days’ notice.

If the employer fails to provide proper notice, it must pay each affected employee one week of severance for every full year of employment.

Since a merger can lead to mass layoffs, <a href="https://www.nj.gov/labor/employer-services/warn/">WARN Act</a> protections sometimes apply.

Key Factors to Consider When Negotiating Severance

4. Non-Compete, Non-Disclosure, and Non-Disparagement Clauses

Rights You Keep No Matter What’s in Your Severance Agreement

Under the <a href="https://www.nj.gov/lps/dcr/downloads/NJ-Law-Against-Discrimination-Most-Updated.pdf">New Jersey Law Against Discrimination (NJLAD)</a>, employees are protected from discrimination based on race, gender, pregnancy, disability, religion, age, and more.&nbsp;

The <a href="https://www.nj.gov/labor/forms_pdfs/lwdhome/CEPA270.1.pdf">Conscientious Employee Protection Act (CEPA)</a> safeguards whistleblowers who report or refuse to participate in illegal or fraudulent activity. These rights remain intact even if you sign a severance agreement.

You also keep the legal right to file a complaint with agencies such as the <a href="https://www.eeoc.gov/">U.S. Equal Employment Opportunity Commission (EEOC)</a> or the <a href="https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/">New Jersey Division on Civil Rights (NJDCR)</a>.&nbsp;

Review the Severance Offer Carefully. Read every detail, including fine print, especially before you <a href="/blog/should-you-sign-a-severance-agreement-without-a-lawyer-in-nj">sign a severance agreement without a lawyer</a>. Look for language about benefits, tax implications, and restrictions on future work. Having an attorney review the agreement can help you spot unfavorable terms and protect your rights before you commit.

Check Your Contract or Employee Handbook. If you have an employment agreement or the company has a written severance policy, use that as a baseline for negotiation.

Assess WARN Act Protections. If the merger involves a mass layoff, determine whether you are entitled to WARN Act notice and severance.

Document Your Contributions. Make a list of your accomplishments, unique skills, and the value you’ve brought to the company. This strengthens your position in negotiations.

Consult an Employment Lawyer. A severance agreement attorney in New Jersey can tell you whether the offer is fair and if you have leverage to request more.

Signing Too Quickly: Once you sign, you’re bound by the agreement. Employers sometimes use <a href="/blog/unfair-severance-negotiation-tactics-nj-employers-may-use">unfair severance negotiation tactics </a>to pressure you into accepting terms before you fully understand them: take the time to review it carefully.

Overlooking Restrictive Covenants: Non-compete clauses can limit your future job opportunities — negotiate these carefully.

Ignoring Benefit Details: Health insurance, retirement account vesting, and stock options can be just as valuable as cash payments.

Not Considering Taxes: Severance pay is taxable, and the structure of your payout can affect your tax liability.

Still Have Questions About Severance Deals? Contact Us for Legal Advice

Negotiating Severance After a Company Merger in NJ

How Non-Competes Are Used in Severance Agreements

A release of claims (you agree not to sue them),

Are There Alternatives to Non-Compete Clauses?

Non-solicitation clauses — Prevent you from reaching out to former clients or employees.

<a href="/blog/how-confidentiality-clauses-affect-your-severance-in-nj">Confidentiality clauses</a> — Bar you from disclosing sensitive company information. But there are growing legal protections for workers, especially in cases involving harassment and discrimination: under the <a href="https://www.nj.gov/lps/dcr/downloads/NJ-Law-Against-Discrimination-Most-Updated.pdf">New Jersey Law Against Discrimination (NJLAD)</a>, employers cannot use confidentiality agreements to silence victims of unlawful conduct.

<a href="/blog/non-disparagement-clauses-should-nj-employees-agree">Non-disparagement clauses</a> — Prevent you from making negative comments about the company.

Are Non-Compete Clauses Enforceable in New Jersey?

Working for a rival company in a similar role

Starting your own business in the same industry

Doing freelance or consulting work for competitors

Joining a vendor or client that overlaps with the company’s services

Whether you were terminated or left voluntarily

Whether you were offered anything in exchange for signing

You’re unsure what the clause actually means

You believe the restrictions are overly broad

You need help negotiating the terms before signing

File a complaint with the <a href="https://www.eeoc.gov/">EEOC</a> or <a href="https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/">New Jersey Division on Civil Rights</a>

Speak confidentially with an attorney about your rights or workplace experiences

Can Employers Retaliate If You Don’t Sign?

Timing Matters: Don’t Sign Under Pressure

Final Thoughts: Balance Caution with Clarity

Understanding Non-Compete Clauses in NJ Severance Agreements: Your Rights Explained

The right to sue for discrimination or wrongful termination

The right to file complaints with state or federal agencies

The right to discuss the terms of the severance (confidentiality or non-disparagement clauses)

Common Unfair Severance Negotiation Tactics in NJ

1. Rushing You to Sign Without Time to Review

You don’t have to sign a severance agreement.

Refusing to sign doesn’t automatically disqualify you from collecting unemployment benefits in New Jersey.

Threatening a poor reference for not signing could be seen as retaliation.

Non-compete or non-solicitation restrictions

Confidentiality clauses that go far beyond severance terms

4. Including Unlawful or Overreaching Clauses

Waivers of rights you can’t legally give up

Non-disparagement clauses that chill protected speech

Broad confidentiality agreements that silence harassment or discrimination claims

5. Tying Severance to a Release of Claims

Discrimination (race, gender, disability, pregnancy, etc.)

Retaliation (whistleblowing or reporting harassment)

Legal Protections in New Jersey for Employees

The right to report illegal discrimination or harassment

The right to file a complaint with the <a href="https://www.eeoc.gov/">EEOC</a> or <a href="https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/">NJ Division on Civil Rights</a>

The right to participate in a government investigation

What You Should Do Before Signing a Severance Agreement

Break down what each clause actually means

Negotiate for better terms (more pay, extended <a href="https://www.dol.gov/general/topic/health-plans/cobra">COBRA</a>, positive references, etc.)

Determine whether your termination may violate NJ or federal law

Any right to discuss your experiences with coworkers?

Your ability to take a new job in the same field?

4. Compare Severance to What You’re Owed

Have I been paid for all unused vacation time?

Severance amount (weeks of pay, lump sum, etc.)

Health benefits extension or COBRA contributions

Job references or letters of recommendation

Non-compete or non-solicit clauses being narrowed or removed

Don’t Sign Away Your Rights Without a Clear Understanding

Contact Us for Legal Advice and a Free Consultation

Unfair Severance Negotiation Tactics NJ Employers May Use

The amount of severance pay or benefits you received

The terms or existence of the agreement itself

Any claims you made or could have made against your employer

Information about the company’s business operations, clients, or internal practices

Where These Clauses Show Up in Severance Agreements

A release of claims (you give up your right to sue)

A non-disparagement clause (you agree not to criticize the employer)

A confidentiality or non-disclosure clause (you agree to stay silent)

A cooperation clause (you agree to assist the employer in future legal matters)

Terms about severance pay and continuation of benefits

You left a job due to discrimination, harassment, or retaliation

You’re pursuing or considering future legal action

You’re applying for jobs and want to explain why you left

You’re part of an industry where reputation matters

Confidentiality and Whistleblower Protections in NJ

What to Look for in a Confidentiality Clause

2. Restrictions on Reporting Illegal Behavior

File a complaint with the <a href="https://www.eeoc.gov/">EEOC </a>or <a href="https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/">NJ Division on Civil Rights</a>

Can You Negotiate a Confidentiality Clause?

Limit the scope: Ask that the confidentiality clause only apply to trade secrets or financial terms — not your experience or legal claims.

Add exceptions: Request language allowing you to speak with family, therapists, legal counsel, or government agencies.

Push for parity: If you’re barred from criticizing your employer, ask that they be barred from disparaging you too.

Challenge illegal terms: If the clause would stop you from discussing unlawful treatment, point out that it may violate NJLAD.

Silence Should Never Be the Price of Fairness

How Confidentiality Clauses Affect Your Severance in NJ

What Is Severance — and Why Do Employers Offer It?

Enforce non-disclosure or non-disparagement clauses

Smooth the transition for the departing employee

Steps to Take Before Signing a Severance Agreement

2. Understand What You're Being Asked to Give Up

Waiver of legal claims (you can’t sue later)

Non-disparagement clauses (you can’t speak negatively about the company)

Amount of severance pay (weeks or months of salary)

Health insurance continuation (<a href="https://www.dol.gov/general/topic/health-plans/cobra">COBRA</a> or employer-covered)

Tips for Negotiating Severance After a Performance-Based Firing

2. Acknowledge Their Position — But Present Your Own

The stress of transition without financial support

More severance weeks (especially if you’ve worked there for years)

Removal or softening of non-compete clauses

You have potential claims of illegal treatment.

You were treated differently from others fired for similar reasons.

Negotiating Severance After a Performance-Based Termination in NJ

Making negative statements about the company

Posting unfavorable opinions about the company on social media

Talking about workplace misconduct, even in general terms

Sharing your experience with future employers, coworkers, or the press

To protect reputation — Companies want to avoid bad press or negative reviews, especially if there were tensions during your time of employment or termination.

To discourage lawsuits — If you’re not allowed to speak out, you’re less likely to bring public complaints or take legal action.

To control the narrative — Some employers may want to silence former employees from speaking to the media, regulators, or other workers.

As part of severance negotiations — Employers often tie these clauses to severance payments, putting workers in a difficult spot: either stay quiet or lose financial support.

Are Non-Disparagement Clauses Legal in New Jersey?

Silences you from talking about unlawful conduct

Prevents you from filing a complaint with the <a href="https://www.njoag.gov/about/divisions-and-offices/division-on-civil-rights-home/">New Jersey Division on Civil Rights (DCR)</a>

Bars you from cooperating in an investigation

Stops you from testifying in a legal case involving workplace misconduct

How Non-Disparagement Clauses Are Different From NDAs

NDAs typically prevent you from sharing confidential company information — like trade secrets, client lists, or internal policies.

Non-disparagement clauses go further by barring negative statements, even if they’re true or based on personal experience.

When a Non-Disparagement Clause Might Be Unfair

Prevent you from speaking honestly to future employers about why you left

Restrict your ability to warn others about a toxic or discriminatory work culture

Force you to remain silent about harassment, bullying, or retaliation

Come with the threat of losing severance or references if you don’t agree

What to Look for in a Non-Disparagement Clause

Prohibits you from making “any negative or disparaging statements”

Covers a wide range of people — including executives, board members, or affiliated businesses

Restricts your ability to speak about “company culture,” “managerial conduct,” or “workplace issues”

Includes vague legal threats or penalties for violation

Talking to coworkers about pay, safety, or treatment

Reporting concerns to the public or government agencies

Seeking legal advice or speaking to an attorney

Review the language for legality and fairness

Preserve your rights while still accepting severance

Determine if your experience qualifies for legal action under NJLAD

Non-Disparagement Clauses: Should NJ Employees Agree?

What’s Usually Included in a Severance Package?

Severance pay: A lump sum or continuation of salary for a set period.

Benefits continuation: Extended health insurance (sometimes paid by the company) or help with <a href="https://www.dol.gov/general/topic/health-plans/cobra">COBRA </a>costs.

Stock options or restricted stock: In tech, this can be one of the biggest parts of your compensation. Companies may accelerate vesting or extend the time you can exercise options.

Outplacement services: Help with resume writing, job searching, or career coaching.

Non-compete or non-solicitation clauses: Restrictions on where you can work or whom you can recruit after you leave.

Confidentiality and non-disparagement: Promises not to reveal company secrets or badmouth the company publicly.

Volatility: Startups pivot, get acquired, or shut down quickly, often leading to layoffs.

Equity compensation: Stock options and grants can make up a significant part of total pay.

Non-competes: Tech professionals are more likely to face restrictions that could limit future opportunities.

Specialized skills: In-demand workers often have leverage to negotiate better terms.

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