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Bill > A689


NJ A689

NJ A689
Eliminates payments for unused sick leave earned after effective date; limits carry forward of unused vacation leave; requires suspension and forfeiture of certain payments; limits use of unused sick leave in year before retirement.


summary

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

Introduced Session

2026-2027 Regular Session

Bill Summary

This bill prohibits the payment by the State, local governments, and boards of education of supplemental compensation to any current or future public officer or employee for accumulated unused sick leave earned after the bill's effective date. The bill will take effect the first day of the second month following enactment. Supplemental compensation for any sick leave earned prior to that date but not used will be payable as under current law. In addition, the bill imposes limits on the carry-forward of vacation leave that is not used in a given year by any current or future employee of the State, a local government, or board of education. The bill requires that payment for unused accumulated sick leave and vacation leave will be suspended if the officer or employee is indicted for certain crimes that involve or touch the office or employment. The payment will be forfeited if the officer or employee is convicted. The bill requires the Attorney General to develop guidelines or establish procedures to provide the appropriate governmental agency or public employer with notice of any indictment or conviction of a current or former officer or employee. The bill prohibits the use of six or more consecutive days of accumulated sick leave in the twelve months prior to retirement, without medical necessity verified in writing by a physician, by a current or future public officer or employee. The employer may require the officer or employee to submit to an examination by a physician selected by the employer to verify the medical necessity. There are penalties for violations of this provision. For the first violation, the employer will treat the time taken as unpaid leave and impose a minimum disciplinary penalty of a fine in an amount equal to one and one-half times the daily rate of compensation for each day of violation. For the second violation, in addition to treating the time as unpaid leave, the employer will impose a minimum disciplinary penalty of a fine in an amount equal to three times the daily rate of compensation for each day of violation. For the third violation, in addition to treating the time taken as unpaid leave, the employer will have good cause to terminate the employee. The minimum penalties set forth for the first and second violations may be increased at the discretion of the employer, based upon the prior record of the employee. The time converted to unpaid leave will also be deducted from the number of unused accumulated sick leave days credited on the effective date of retirement. Certain provisions of the bill would apply after the expiration of a collective negotiations agreement or individual contract of employment with a relevant provision in effect on the bill's effective date.

AI Summary

This bill aims to reform how unused sick and vacation leave are handled for public employees in New Jersey by eliminating payments for unused sick leave earned after the bill's effective date, limiting the amount of unused vacation leave that can be carried over each year, and introducing penalties for misuse of sick leave before retirement. Specifically, the bill prohibits supplemental compensation, which is extra payment for unused sick leave upon retirement, for any sick leave accrued after the bill becomes law, though leave earned before that date will still be compensated as per current rules. It also limits how much unused vacation time can be rolled over into the next year. Furthermore, any payments for accumulated unused sick or vacation leave will be suspended if an employee is indicted for certain crimes related to their job and forfeited if they are convicted, with the Attorney General tasked with creating a system to notify employers of such indictments or convictions. The bill also introduces new restrictions on using six or more consecutive days of sick leave in the year before retirement unless medically necessary and verified by a doctor, with penalties for violations including unpaid leave and fines, and potentially termination for repeated offenses.

Committee Categories

Government Affairs

Sponsors (2)

Last Action

Introduced, Referred to Assembly State and Local Government Committee (on 01/13/2026)

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