WASHINGTON, April 7, 2023 – The following statement should be attributed to Andy Banducci, Senior Vice President, Retirement and Compensation Policy, The ERISA Industry Committee (ERIC):
“The ERISA Industry Committee is extremely disappointed that the United States District Court for the District Of New Jersey denied ERIC’s motion for summary judgment on standing grounds and ultimately failed to address the ERISA preemption issues at the core of our legal challenge to the amended New Jersey WARN Act. We believe that the court’s ruling is ultimately inconsistent with past precedent on the standing issues at hand, and that ERIC does have standing to bring this suit on behalf of our large employer member companies. This decision leaves New Jersey employers in a difficult position of having to choose to comply with the amended law or to litigate an issue that is important to employers and employees alike.
ERIC remains steadfast in our belief that the amendments to New Jersey’s WARN Act are preempted by the federal Employee Retirement Income Security Act (ERISA) as they create a series of requirements that force employers to create ongoing administrative systems, which states are prohibited from imposing on employers under ERISA. Accordingly, ERIC is considering its options to appeal this recent order.
ERIC will also continue to fight overreaching state and local laws, such as the amended New Jersey WARN Act, that attempt to control federally regulated employee benefit plans. Employers with nationwide operations and employees working across the country must be allowed to administer their benefit plans under a single set of federal standards without mandates or compliance burdens imposed by state or local governments. We will take time to consider potential next steps in this case.”