06-14-11 PATRICK DEROSA, ET AL. VS. ACCREDITED HOME LENDERS, INC., ET AL.
A-3727-09T3
The Millville Dallas Airmotive Plant Job Loss Notification Act, N.J.S.A. 34:21-1 to -7 (the New Jersey WARN Act or the Act), generally provides that under certain conditions employees are entitled to notice, or alternatively, severance pay, in theevent of a transfer or termination of operations, or a mass layoff by an employer. On this appeal, we consider the novel question of whether the Act applies to parent and affiliated companies. We conclude that consistent with its federal analogue, The Worker Adjustment and Retraining Notification Act of 1988 (the federal WARN Act), 29 U.S.C.A. §§ 2101 to -2109, the New Jersey Act does apply to parent and affiliated companies, and in reaching this conclusion, we adopt the "five- factor" test enunciated in 20 C.F.R. § 639.3(a)(2).
On motion for summary judgment, the motion judge dismissed plaintiffs' complaint. We reversed and remanded for a hearing on the application of the Act consistent with our holding.
