New Jersey Assembly Bill A2113

New Jersey 2022-2023 Regular Session

• Introduced: 2/7/22
• Refer: 2/7/22

Caption

Concerns payment of leave time to employee in year of employee's retirement.

Impact

The bill is intended to address situations where the current practices led to large, unwarranted payments. For instance, it specifically targets a case involving a police officer who was able to retire after working only one month in a given year, yet received a full year's worth of leave benefits, resulting in a sizeable sum being paid out by the local government. This bill has implications for local budgets and taxpayer dollars, aiming to ensure that retirement compensation aligns more closely with the actual time worked by employees.

Summary

Assembly Bill A2113 seeks to regulate the payment of leave time for employees of local units in New Jersey during the year of their retirement. Specifically, the bill stipulates that if a local unit opts to pay terminal leave to a retiring employee or any employee separating from service, this payment cannot include leave time that was credited at the start of that employee's final year unless it is earned based on the actual days worked. This approach aims to prevent local government entities from making excessive payout decisions that do not reflect actual service rendered during the year of retirement.

Contention

There may be concerns from unions and employees regarding the potential reduction in benefits during retirement. Critics might argue that employees should receive full compensation for their leave, regardless of actual working days in their final year, particularly if unions have negotiated collective agreements that outline such benefits. As such, the bill represents a shift towards limiting benefits, which could lead to disputes regarding existing collective negotiations between local units and their workforce.