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Bill > A1579


NJ A1579

NJ A1579
Prohibits terminal leave compensation for local government employees.


summary

Introduced
01/27/2016
In Committee
01/27/2016
Crossed Over
Passed
Dead
01/08/2018

Introduced Session

2016-2017 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 terminal leave compensation for local government employees in New Jersey. Terminal leave allows public employees to remain on the payroll at full salary and benefits immediately prior to retirement without coming to work by using up accumulated leave. The bill bans the payment of terminal leave compensation for accumulated unused administrative, sick, and vacation leave or terminal benefits for longevity. It also prohibits the use of six or more accumulated sick days by an employee within 12 months of becoming eligible for retirement, unless a physician verifies the medical necessity. The employer can require the employee to undergo a medical examination by a physician selected by the employer to verify the medical necessity, and the employer must deduct any sick leave found to be used in violation from the employee's retirement benefits.

Committee Categories

Labor and Employment

Sponsors (7)

Last Action

Introduced, Referred to Assembly Labor Committee (on 01/27/2016)

bill text


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