New Jersey is an “at-will employment” state, meaning that employers may fire employees for any lawful reason, or for no reason at all, without necessarily having to show good cause. Note that employers are limited to “lawful” reasons for firing someone. New Jersey employment laws and those at the federal level protect workers from termination for a variety of unlawful reasons. Under a new law passed by the New Jersey Legislature and signed by the governor in January 2022, hotels in New Jersey may not fire any employees for a defined period of time after a change in ownership. The new law allows aggrieved employees to file suit for damages.
Numerous New Jersey laws bar wrongful termination by employers. The New Jersey Law Against Discrimination (NJLAD), for example, prohibits employers from discriminating against employees and job applicants on the basis of protected factors like race, gender, religion, and others. Firing someone because of their membership in a protected class is considered unlawful discrimination.
The NJLAD also bars employers from firing someone in retaliation for reporting alleged workplace discrimination. The Conscientious Employee Protection Act (CEPA) protects workers who report other types of unlawful activity, commonly known as whistleblowers. Employers may not fire whistleblowers or take other retaliatory actions towards them.
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