New Jersey has enacted twice in the past two years laws requiring a successor employer to continue to employ its predecessor’s employees. One law focuses on certain health care workers and the other on certain facility service workers.

These laws limit a business’s latitude to work differently than its predecessor, and they need to be accounted for by any bidder on a project or services contract, purchaser of operational assets or controlling equity, or issuer of a request-for-proposal. This article is a primer on the subject, and also explains the labor law implications of these laws, whether they may be pre-empted by federal law, and whether more may be on the way.

Health Care Industry Transactions