NJ Law Offers Salary, Benefit Protections For Nursing Home Workers During Ownership Changes

A new law in New Jersey will require companies that acquire nursing homes, and other health care facilities, to maintain employee salaries and benefits for at least four months.

Signed into law by Gov. Phil Murphy late last week, the bill (S315) provides certainty that any non-governmental health care entity has to continue providing the same wages, paid time off or the total value of their benefits, according to the governor’s office.

This applies to any sale or transfer, including consolidations, mergers or reorganizations. Those in violation of the law could face penalties, the governor’s office said.

The law takes effect in 90 days.

Only if the employer is downsizing the total number of positions could an employee be let go during the four-month transition period, however, in that instance priority has to be given to experienced and senior employees, the governor’s office noted.

Nursing home and hospital leaders previously argued the bill could lead impede profits and lead to further job losses, according to an NJ.com report. The bill died in the state assembly earlier this year, but was later reintroduced and scaled back, according to the local publication.

Rhina Molina, executive vice president of 1199SEIU New Jersey, said in a statement that the legislation was designed to preserve labor standards and maintain continuity of care for nursing home residents.

“Nursing home workers deserve a chance to adjust when their workplace is sold, and nursing home residents deserve uninterrupted high-quality care,” Molina said.

The bill was sponsored by Sens. Joseph Vitale and Richard Codey, as well as Assemblyman Wayne DeAngelo.

“Our front-line workers in the health care industry risked their lives to provide care to sick and in some cases dying patients during the height of the coronavirus pandemic,” Sen. Codey said in a statement. “Those same workers have a right to expect their wages and benefits are going to be protected, and be insulated from any structural change that might come from the consolidation of health care entities.”