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A1498
ASSEMBLY, No. 1498
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman ROY FREIMAN
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
���� Implements recommendations of State Comptroller
report on municipal sick leave, vacation leave, and supplemental payment
policies; establishes certain financial penalties.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
related to municipal sick leave and vacation leave
policies and supplementing various parts of the statutory law.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� The Division of Local
Government Services in the Department of Community Affairs shall undertake a
comprehensive review of the persons excluded from the definitions of �officer
or employee� under sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2,
and C.40A:9-10.3) and shall prepare and distribute a report to the Governor
and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the
Legislature, setting forth recommendations for continuing or modifying the
persons excluded under the above referenced provisions of law.
���� 2.��� Notwithstanding any
provisions of the �New Jersey Employer-Employee Relations Act,� P.L.1941, c.100
(C.34:13A-1 et seq.), or of any other law to the contrary:
���� a.� contractual provisions
regarding accumulation of unused sick leave and the accumulation of unused
vacation leave, and supplemental compensation for accumulated unused sick leave
and accumulated unused vacation leave, shall be consistent with the provisions
of sections 42 through 46 of P.L.2007, c.92 (C.11A:6-19.1 et al.) and of
P.L.2010, c.3 (C.11A:6-19.2 et al.); and�
���� b.� the terms and conditions
of employment set forth by sections 42, 43, and 45 of P.L.2007, c.92
(C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3) and by P.L.2010, c.3
(C.11A:6-19.2 et al.) shall not be diminished by entry into a collectively
negotiated agreement or adoption of a policy manual.�
���� 3.��� The Director of the
Division of Local Government Services in the Department of Community Affairs
shall, in accordance with the �Administrative Procedure Act,� P.L.1968, c.410
(C.52:14B-1 et seq.), adopt rules and regulations as the director deems necessary
to clarify and implement the provisions of sections 42, 43, and 45 of P.L.2007,
c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3) and of P.L.2010, c.3
(C.11A:6-19.2 et al.).� The director shall, by adoption of rules and
regulations, impose accountability measures to ensure compliance with sections
42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3)
and P.L.2010, c.3 (C.11A:6-19.2 et al.), which may require an appropriate local
official to certify that the requirements of sections 42, 43, and 45 of
P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3) and P.L.2010, c.3
(C.11A:6-19.2 et al.) are enforced.
���� 4.��� a.� (1)� The governing
body of a municipality that has established an employee supplemental payment
policy or policies prior to the effective date of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill) shall publish the policy or policies
as provided for pursuant to paragraph (3) of this subsection.
���� (2)�� The governing body of a
municipality that proposes to establish or modify an employee supplemental
payment policy shall publish the policy or policies, or proposed modifications,
as provided for pursuant paragraph (3) of this subsection.
���� (3)�� A municipality that
maintains an Internet website shall publish for public inspection a
supplemental payment policy, as described pursuant to paragraph (1) or (2) of
this subsection, on the municipality's Internet website.� A municipality that
does not maintain an Internet website shall submit the supplemental payment
policy or proposed supplemental payment policy to the Department of Community
Affairs for publication on the department�s Internet website.� The department
shall publish supplemental payment policies received pursuant to this paragraph
on the department�s Internet website.
���� b.��� A municipal governing
body shall individually approve each supplemental payment for each municipal
employee pursuant to a supplemental payment policy by resolution of the
governing body at a public meeting where the proposed action and public
comments on the proposed action shall be considered by the governing body.
���� c.���� (1)������� The
governing body of a municipality that maintains an employee supplemental
payment policy shall not approve a payment for an employee pursuant subsection
b. of this section, unless the municipality publishes the proposed resolution
and documentation supporting the supplemental payment, together with notice of
the date, time, place, purpose of the meeting, in a newspaper of general
circulation in the municipality once each week for two consecutive weeks.� The
final publication shall be not less than twenty days prior to the date set for
the meeting.� Each publication shall also include information related to the
times and places where additional supporting documentation shall be available
for public inspection at no charge, including any advisory documents providing
rationale for the supplemental payment policy and the individual proposed
payment, along with any additional documentation relevant to the proposed
payment.���
���� (2)�� A municipality that
publishes a notice pursuant to this subsection and maintains an Internet
website, shall publish the additional supporting documentation, as described in
paragraph (1) of this subsection, for public inspection on the municipality's
Internet website.� A municipality that does not maintain an Internet website
shall submit the additional supporting documentation to the Department of
Community Affairs for publication on the department�s Internet website.� The
department shall publish additional supporting documentation received pursuant
to this paragraph on the department�s Internet website.
���� d.��� For the purposes of this
section �supplemental payment� means a payment to an employee of a municipality
in excess of the employee�s regular compensation or reimbursement to the
employee for actual costs incurred by the employee related to the person�s employment
with the municipality.�
���� 5.� a.� If the Division of
Local Government Services determines that a municipality has violated a
provision of sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1,
C.40A:9-10.2, and C.40A:9-10.3), P.L.2010, c.3 (C.11A:6-19.2 et al), or P.L.���
, c.��� (C.������� ) (pending before the Legislature as this bill), the
division shall as a penalty for noncompliance annually withhold the amount of
consolidated municipal property tax relief aid or energy tax receipts property
tax relief aid, or both, otherwise available to the municipality, in the
current or subsequent budget year, by the amount sufficient to cover the cost
of payments that the municipality improperly paid to its officers or
employees.� Alternatively, if a municipality is not eligible for aid or if the
consolidated municipal property tax relief aid or energy tax receipts property
tax relief aid, or both, are not reduced, as described pursuant to this
section, sufficient to cover the amount the municipality improperly paid to its
officers or employees, the division may prohibit the municipality from raising
revenue through the property tax levy, as described pursuant to section 10 of
P.L.2007, c.62 (C.40A:4-45.45), above the rate set by the municipality in the
most recent fiscal year until such time as the division determines that the
municipality is in compliance with the provisions of sections 42, 43, and 45 of
P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3), P.L.2010, c.3
(C.11A:6-19.2 et al), and P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill.
���� b.� In making a determination pursuant
to subsection a. of this section, the Division of Local Government Services
shall refrain from enforcing any penalty established pursuant to subsection a.
of this section for a municipal violation of any provision of sections 42, 43,
and 45 of P.L.2007, c.92 (C.11A:6-19.1, C.40A:9-10.2, and C.40A:9-10.3),
P.L.2010, c.3 (C.11A:6-19.2 et al), or P.L. , c. (C. )
(pending before the Legislature as this bill), as applicable, if:
���� (1)� for an action by the
municipality related to an employee who is not subject to an applicable
collective bargaining agreement of the municipality, the action was taken
within the six months immediately following the adoption of rules and
regulations pursuant to section 3 of P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill
)
; or
���� (2)� for an action by the
municipality related to an employee who is subject to an applicable collective
bargaining agreement of the municipality, the action taken was required
pursuant to an applicable collective bargaining agreement that was entered into
by the municipality before the adoption of rules and regulations pursuant to
section 3 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill).
���� 6.� This act shall take effect
on the first day of the sixth month next following enactment, except the
Director of the Division of Local Government Services in the Department of
Community Affairs may take any anticipatory administrative action in advance as
shall be necessary for the implementation of this act.
STATEMENT
���� This bill would implement
recommendations for legislation that are set forth in the State Comptroller�s
July 2022 report: �A Review of Sick and Vacation Leave Policies in New Jersey
Municipalities.�� Sections 42, 43, and 45 of P.L.2007, c.92 (C.11A:6-19.1,
C.40A:9-10.2, and C.40A:9-10.3), subsequently referred to as �the P.L.2007,
c.92 provisions�, imposed a limit on the amount of supplemental compensation
that a political subdivision of the State may pay to a local officer or
employee.� However, the 2007 enactment excluded certain local officers and
employees from the supplemental compensation limitation.�
���� Section 1 of the bill would
require the Division of Local Government Services in the Department of
Community Affairs to undertake a comprehensive review of the persons excluded
from the definitions of �officer or employee� under the P.L.2007, c.92 provisions
and to prepare and distribute a report to the Governor and the Legislature
setting forth recommendations for continuing or modifying the persons excluded
under the above referenced provisions of law.
���� Section 2 of the bill would
prohibit municipalities from entering into contractual provisions regarding the
accumulation of sick leave and the accumulation of unused vacation leave, and
the payment of supplemental compensation for accumulated sick leave and
accumulated unused vacation leave, unless the contractual provisions are
consistent with the P.L.2007, c.92 provisions and with P.L.2010, c.3
(C.11A:6-19.2 et al.).� Section 2 also prohibits municipalities from
diminishing the terms and conditions of employment set forth by the P.L.2007,
c.92 provisions and by P.L.2010, c.3 (C.11A:6-19.2 et al.) through entrance
into a collectively negotiated agreement or adoption of a policy manual.�
���� Section 3 of the bill would
require the Director of the Division of Local Government Services in the
Department of Community Affairs to adopt rules and regulations deemed necessary
to clarify and implement the P.L.2007, c.92 provisions and of P.L.2010, c.3
(C.11A:6-19.2 et al.).� This section specifically requires the director to
adopt rules and regulations imposing accountability measures to ensure
compliance with the P.L.2007, c.92 provisions and P.L.2010, c.3 (C.11A:6-19.2
et al) which may require an appropriate local official to certify that the
requirements of the P.L.2007, c.92 provisions and P.L.2010, c.3 (C.11A:6-19.2
et al.) are enforced.
���� Section 4 of the bill would
require municipalities to electronically publish supplemental payment policies
for municipal employees on the Internet.� This section would also require a
municipal governing body to approve any supplemental payment to any individual
municipal employee by resolution of the governing body at a public meeting.�
This section would further require that the municipality: 1) provide advanced
notice of the date, time, place, and purpose of the public meeting, and 2) make
supporting documentation for the supplemental payment accessible, both as
provided for in the bill.
���� Section 5 of the bill would
require the Division of Local Government Services, upon the division�s
determination that a municipality has violated a provision of this bill, the
P.L.2007, c.92 provisions, or P.L.2010, c.3 (C.11A:6-19.2 et al), to annually withhold,
as a penalty for noncompliance, the amount of State aid otherwise available to
the municipality, in the current or subsequent budget year, by the amount the
municipality improperly paid to its officers or employees.� Alternatively, if a
municipality is not eligible for State aid sufficient to cover the amount the
municipality improperly paid to its officers or employees or if State aid is
not reduced, the bill authorizes the division to prohibit the municipality from
raising revenue through the property tax levy until such time as the division
determines that the municipality is in compliance with the provisions of this
bill, the P.L.2007, c.92 provisions, and P.L.2010, c.3 (C.11A:6-19.2 et al).�
The bill specifies certain actions of a municipality would not constitute a
violation under the bill.
���� The bill would take effect on
the first day of the sixth month after enactment.