ASSEMBLY BUDGET COMMITTEE

STATEMENT TO

[Second Reprint]

SENATE, No. 315

STATE OF NEW JERSEY

DATED:  JUNE 27, 2022

      The Assembly Budget Committee reports favorably Senate Bill No. 315 (2R).

      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.

      As reported by the committee, Senate Bill No. 315 (2R) is identical to Assembly Bill No. 3684, which was amended reported by the committee on this date.

FISCAL IMPACT:

      Fiscal information for this bill is currently unavailable.