Is There An Automatic Right To Severance In New Jersey?

When a layoff or termination occurs, one of the most common questions is whether the employee is entitled to severance (also known as separation) pay. An important thing to note for both employees and employers is that under New Jersey law, an employer is generally not required to give an employee severance pay. There are specific circumstances where severance pay is required under New Jersey law. Speaking with a qualified employment attorney can help you understand whether you, or your employees, are entitled to automatic severance.

Earned Wages Vs Severance Pay – What Exactly Is Severance?

Severance pay should not be confused with earned wages. Earned wages is the sum that an employee has earned for work performed. Whether an employee quits or is fired, their employer must pay the employee all wages earned. The employee is entitled to receive a final paycheck, including earned commissions and guaranteed bonuses, on the first scheduled payday after the