SENATE HEALTH, HUMAN SERVICES AND SENIOR CITIZENS COMMITTEE

STATEMENT TO

SENATE, No. 315

with committee amendments

STATE OF NEW JERSEY

DATED:  FEBRUARY 3, 2022

      The Senate Health, Human Services and Senior Citizens Committee reports favorably and with committee amendments Senate Bill No. 315.

      As amended by the committee, this bill requires that any change in control of a health care entity be made by a contract or agreement which provides certain protections for employees regarding their wages, benefits, and employment in connection with the change in control. 

      The bill requires any agreement for the change in control, unless both the former and successor health care entity employers are governmental employers, to require that all eligible employees be offered employment during a six-month transitional period; that none of them be discharged except in a reduction of the work force, and then only on the basis of seniority and only if the laid off workers are offered employment if the positions are restored; and that employees be given written evaluations of their work during the transitional period and retained if their work is satisfactory.

No action taken pursuant to a collective bargaining agreement entered into by an exclusive representative of employees of a health care entity subject to an change of control is a violation of the bill, and the bill does not limit, delay, or prevent the recognition of an employee collective bargaining representative; or collective bargaining between the successor health care entity employer and the representative.

      Employers who violate the provisions of the bill are subject to the sanctions, and an employee affected by the violation have the remedies, provided by law for violations of P.L.1965, c.173 (C.34:11-4.1 et seq.).

      The bill will take effect on the 90th day after enactment and apply to contracts or agreements for the sale or transfer of health care entities entered into on or after the effective date of the bill.

As used in the bill, "health care entity" means a licensed health care facility, a staffing registry, or a home care services agency.

This bill was pre-filed for introduction in the 2022-2023 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.

COMMITTEE AMENDMENTS:

      The amendments adopted by the committee:

      1.   Remove the provisions of the bill which require a collective bargaining agreement in effect before the change in control to remain in effect after the change;

      2.   Exempt agreements in which both the former and successor health care entity employers are governmental employers;

      3.   Add the requirements: that all eligible employees be offered employment during a six-month transitional period; that none of them be discharged except in a reduction of the work force, and then only on the basis of seniority and only if the laid off workers are offered employment if the positions are restored; and that employees are given written evaluations of their work during the transitional period and retained if their work is satisfactory;

      4.   Add the requirement that both the former entity and successor entity are required disclose information about employees, as needed to facilitate the implementation of the bill to each other and to employees and employee representatives;

      5.   Add language providing that the bill does not delay or prevent recognition of collective bargaining representatives or of collective bargaining, including in the transitional period;

      6.   Add definitions of “change of control”, “eligible employee”, and “managerial employee”;

      7.   Add a provision specifying that an employer who violates the provisions of the bill is subject to the sanctions, and an employee affected by the violation has the remedies, provided by law for violations of P.L.1965, c.173 (C.34:11-4.1 et seq.); and

      8.  Have the bill take effect on the 90th day after enactment.