As discussed in this week’s Client Alert by our partner Alan S. Pralgever, New Jersey Governor Phil Murphy recently signed into law a bill (A-4768) that sets April 10, 2023, as the new effective date for long awaited amendments to the NJ WARN Act. These changes have far-reaching implications for New Jersey employers, including those in the healthcare industry, concerning items such as notice and severance to be provided to employees in instances of mass layoffs or the termination or transfer of business operations.

This most recent change to the employment landscape per the NJ WARN Act comes on the heels of New Jersey Senate Bill No. 315, which went into effect on November 10, 2022 and created new employment protections for eligible employees of certain private healthcare entities that experience what is referred to as a “change in control.” The law applies to hospitals, healthcare and treatment centers, rehabilitation centers, nursing homes, outpatient clinics, dispensaries, residential healthcare facilities, and any other healthcare entities licensed under N.J.S.A. 26:2H-1 et seq. Moreover, the law requires notice be given to the eligible employees of the “change in control” and that all eligible employees be informed of their rights under the law. It also restricts the ability of the buyer to terminate employees and requires them to provide evaluations and documentation of employment decisions to help protect eligible employees from termination.

Healthcare entities experiencing a significant reduction in workforce, changes in business operations, or other events that could be considered a “change in control” should carefully consider these new laws and seek legal guidance before taking action to avoid the potential penalties and legal ramifications of non-compliance.

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Photo of John W. Kaveney John W. Kaveney

Partner, Healthcare and Litigation Departments

Mr. Kaveney focuses his practice in the area of healthcare law, representing a range of clients that includes for-profit and non-profit hospitals and health systems, academic medical centers, individual physicians and physician groups, ambulatory surgery centers, ancillary service…

Partner, Healthcare and Litigation Departments

Mr. Kaveney focuses his practice in the area of healthcare law, representing a range of clients that includes for-profit and non-profit hospitals and health systems, academic medical centers, individual physicians and physician groups, ambulatory surgery centers, ancillary service providers, medical billing companies, skilled nursing and rehabilitation facilities, behavioral health centers and pharmacies.

His practice in the healthcare field encompasses advising healthcare clients on corporate compliance matters, including the implementation of new, and the assessment of existing, corporate compliance programs. He also assists healthcare clients with compliance audits and investigations, as well as guiding clients through the self-disclosure and repayment processes. Finally, he provides general legal advice concerning compliance and regulatory matters under state and federal healthcare laws.

In the area of information privacy and data security, Mr. Kaveney advises healthcare clients on issues arising under the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH). This includes the implementation and assessment of privacy and security policies and procedures to ensure the proper protection and utilization of protected health information both by healthcare providers and the business associates with which they contract. In addition, he represents healthcare clients in investigating, reporting, and remediating information breaches and the liability such breaches create under various information privacy and security laws.

Additionally, Mr. Kaveney provides counsel on Medicaid and Medicare reimbursement matters before the Division of Medical Assistance and Health Services and the Provider Reimbursement Review Board, as well as assisting clients in civil litigation and with professional licensing and medical staffing concerns.

Contact information:

jkaveney@greenbaumlaw.com | 973.577.1796 | vCard | LinkedIn

For more information visit the Greenbaum, Rowe, Smith & Davis LLP website.