New Jersey Assembly Bill A993

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

Caption

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

Impact

The bill is expected to have significant implications for local government budgets and taxpayer funds. Notably, it responds to a specific situation involving a police officer who retired after only one month of service in a calendar year and received a substantial payment for the entire year's worth of leave time. This situation raised concerns over potential abuses of contract provisions that could lead to large, unexpected costs to local municipalities. By putting this limitation in place, the bill intends to protect taxpayer dollars and promote fairness in terminal leave compensation.

Summary

Assembly Bill A993 is a proposed legislation in New Jersey that addresses the payment of leave time to local government employees during their year of retirement. Specifically, the bill aims to limit the terminal leave payments a local unit can issue to employees who are retiring or separating from service. Under the proposed law, employees will not be compensated for leave time credited at the beginning of their final year if they do not work the entire year. This will ensure payments are proportional to the actual time worked, disallowing lump-sum payments for unused leave time not earned during the employment period.

Contention

While many local government administrators and taxpayers may support the bill for its cost-saving measures, there are potential points of contention regarding its implementation. Critics might argue that the legislation could disincentivize long-term service or discourage employees from extending their tenure to avoid financial penalties. Additionally, there may be opposition from labor unions that advocate for employee benefits, claiming that the restrictions on leave time payments could undermine negotiated agreements that have allowed for lump-sum payments under specific circumstances.