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Bill > A3154


NJ A3154

NJ A3154
Prohibits terminal leave compensation for local government employees.


summary

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

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill would implement Recommendation 3 of the State Commission of Investigation's (SCI) report entitled, "The Beat Goes On...Waste and Abuse in Local Government Employee Compensation and Benefits" and would eliminate terminal leave. Terminal leave allows public employees to remain on the public payroll at full salary and benefits immediately prior to their retirement without coming to work by using up accumulated leave, usually in the form of many sick days banked over the course of a career. The bill bans the payment of terminal leave compensation for accumulated unused administrative, sick, and vacation leave or terminal benefits for longevity for employees of certain political subdivisions, including counties, municipalities, fire districts, and school districts. This bill would also prohibit the use of six or more accumulated sick days by an employee within the twelve month period after they are eligible for retirement, unless a physician verifies in writing the necessity of that medical leave. The local government employer may require the employee to submit to an examination conducted by a physician selected by the employer to verify the medical necessity. The bill requires the employer to deduct, for each day of sick leave used in violation, one day of accumulated unused sick leave.

AI Summary

This bill prohibits local government employees from receiving "terminal leave compensation," which is payment for unused sick, vacation, or administrative leave, or benefits for long service, that employees could previously receive immediately before retirement without actually working. This change applies to employees of counties, municipalities, fire districts, and school districts, and is intended to address waste and abuse in local government compensation. Additionally, the bill restricts the use of six or more consecutive sick days within the year before retirement unless a doctor verifies the medical necessity, and employers can require a physician's examination to confirm this; any sick days used in violation will be deducted from the employee's accumulated leave used for calculating retirement benefits.

Committee Categories

Labor and Employment

Sponsors (3)

Last Action

Introduced, Referred to Assembly Labor Committee (on 01/13/2026)

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