Opinion ID: 2816816
Heading Depth: 4
Heading Rank: 1

Heading: An appointing authority may institute layoff

Text: actions for economy, efficiency, or other related reasons. 1. Demotions for economy, efficiency, or other related reasons shall be considered layoff actions and shall be subject to the requirements of this chapter. 31 [N.J.A.C. 4A:8-1.1.] Second, the mechanics of a layoff action are detailed in the civil service regulations. Public entity employers governed by Civil Service law are required first to consider alternatives to layoffs and to take a number of pre-layoff actions. See N.J.A.C. 4A:8-1.2, 1.3. The regulations suggest alternatives to layoffs, such as “[g]ranting voluntary furloughs,” “[a]llowing voluntary reduction of work hours by employees,” “[p]roviding employees with optional temporary demotional title changes,” and other actions. N.J.A.C. 4A:8-1.2. The regulations require that the public entity employer take certain actions pre-layoff, “which may include, but are not limited to: 1. Initiating a temporary hiring and/or promotion freeze; 2. Separating nonpermanent employees; 3. Returning provisional employees to their permanent titles; 4. Reassigning employees; and 5. Assisting potentially affected employees in securing transfer or other employment.” N.J.A.C. 4A:8-1.3(a). Importantly, the public employer is required to “consult with” the union representatives of affected employees before “initiating measures under th[at] section.” N.J.A.C. 4A:8-1.3(c). Third, the regulations require Commission approval of a proposed layoff; therefore, when a public employer determines to proceed with a layoff action, civil service regulations detail what information must be submitted. See N.J.A.C. 4A:8-1.4(a). 32 That list of required information includes “[a] detailed explanation of all alternative and pre-layoff actions . . . taken, or . . . considered and determined [to be] inapplicable,” and “[a] summary of consultations with” union representatives. N.J.A.C. 4A:8-1.4(a)(6), (7). If approved, final notice of layoff is provided to affected employees, N.J.A.C. 4A:8-1.6, and employees have appeal rights under the civil service system, N.J.A.C. 4A:8-2.6, including the right to challenge the good faith of the layoff, see N.J.A.C. 4A:8-2.6(a)(1) (permitting challenge based on assertion that employer acted “for reasons other than economy, efficiency or other related reasons”). The upshot to that detailed scheme is that the decision to proceed with a layoff is a heavily imbued management decision, but a discretionary one, subject to approval by the Commission for implementation.