NJBIA Statement on Legislation Imposing Conditions of Employment in Transfers of Ownership of Healthcare Facilities
NJBIA President and CEO Michele Siekerka released the following statement following Governor Phil Murphy’s signing of Bill S-315 today, which imposes excessive terms and conditions of employment in the transfer of ownership of health facilities.

“While the intent of this bill is to protect workers who already have protections, it again does not balance the concerns of business and the healthcare community and may, in fact, lead to unintended consequences, such as the closure of establishments.

“This law now obliges a new owner to accept workers employed by the seller, whether they are unionized or employed at will. The new owner must agree to the salary and benefits terms negotiated by the previous owner.

“By requiring future layoffs of employees to be based on a seniority system, as this law does, a new owner no longer has the flexibility to retain the best staff, giving any company its best chance of success. to succeed.

“As consolidation continues in the healthcare sector, this law will likely have a negative effect on the market, forcing some facilities to close. This can be particularly problematic in our urban areas, where healthcare facilities are struggling to stay open.”

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