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Bill > S2534


NJ S2534

NJ S2534
Establishes Office of Leave Time Compliance in DCA to ensure municipal, county, and school district compliance with accumulated sick leave and vacation leave laws.


summary

Introduced
01/13/2026
In Committee
01/13/2026
Crossed Over
Passed
Dead

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill establishes the Office of Leave Time Compliance in the Division of Local Government Services in the Department of Community Affairs (DCA). The purpose of the office is to ensure that municipal, county, and school district policies and procedures comply with State laws concerning the accumulation and payment for unused sick leave and the accumulation of unused vacation leave for municipal, county, or school district employees. Under the bill, the Director of the Division of Local Government Services would appoint a coordinator to oversee the office. The coordinator would organize and direct the work of the office, including the work of such professional and clerical staff as may be necessary to carry out the duties of the office. The duties of the coordinator would, at a minimum, include: (1) developing guidelines for distribution to the governing body of each municipality, county, and school district on the interpretation and implementation of on existing accumulated sick leave and vacation leave laws; and (2) ensuring compliance with the laws by:· requiring municipalities, counties, and school districts to submit information concerning sick leave payouts made to employees to the office in a manner and on such forms as determined by the coordinator. Prior to submission, the information would need to be certified by a business administrator or finance officer; and· conducting assessments and reviews of the sick leave and vacation leave accrual systems and controls used by municipalities, counties, and school districts in this State, and either: certifying that the systems and controls are in compliance with State requirements; or issue a notice of noncompliance to the governing body of the municipality, county, or school district along with a corrective action plan to follow in order to achieve compliance. The bill requires the coordinator to submit an annual report to the Governor and to the Legislature which includes a description of: the sick leave payouts made to employees and the assessment of the sick leave and vacation leave accrual systems utilized by municipalities, counties, and school districts; enforcement actions taken by the coordinator during the previous year; and recommendations the coordinator deems appropriate and necessary concerning the oversight of leave time compliance.

AI Summary

This bill establishes the Office of Leave Time Compliance within the Department of Community Affairs' (DCA) Division of Local Government Services to ensure that local governments, including municipalities, counties, and school districts, adhere to state laws regarding the accumulation and payment of unused sick leave and the accumulation of unused vacation leave for their employees. The office will be overseen by a coordinator appointed by the Director of the Division of Local Government Services, who will be responsible for developing guidelines for these entities on how to interpret and implement existing leave laws, and for verifying their compliance. This verification process involves requiring these local government bodies to submit certified information on sick leave payouts and conducting assessments of their leave accrual systems; if non-compliance is found, a corrective action plan will be issued, and failure to comply could result in restrictions on increasing appropriations. The coordinator will also submit an annual report to the Governor and Legislature detailing leave payouts, system assessments, enforcement actions, and recommendations for improving leave time oversight.

Committee Categories

Housing and Urban Affairs

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Community and Urban Affairs Committee (on 01/13/2026)

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