A4744

An Act concerning the payment of unused sick leave earned by certain local government employees under certain circumstances, and supplementing Title 11A of the New Jersey Statutes and Title 40A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. Notwithstanding any law, rule, or regulation to the contrary, a political subdivision of the State, or an agency, authority, or instrumentality thereof, excluding local boards of education, that has adopted the provisions of Title 11A of the New Jersey Statutes, may pay the accumulated unused sick leave earned by an officer or employee as supplemental compensation to that officer or employee, as further provided in this section.

b. The payment of accumulated unused sick leave to an officer or employee shall be at the sole discretion of the political subdivision, or an agency, authority, or instrumentality thereof, as appropriate, and shall not be subject to collective negotiation agreements or individual contracts.

c. If a political subdivision, or an agency, authority, or instrumentality thereof, as appropriate, decides to pay accumulated unused sick leave as supplemental compensation to an officer or employee pursuant to this section:

(1) the number of accumulated unused sick leave hours eligible for payment shall not exceed the equivalent of three weeks sick leave;

(2) the number of accumulated unused sick leave hours eligible for payment shall not cause the officer or employee to have less than 100 working days of accumulated sick leave per year; and

(3) the payment of accumulated unused sick leave shall not occur more than once per calendar year on a date determined by the political subdivision, or an agency, authority, or instrumentality thereof, as appropriate.

d. The supplemental compensation for the payment of accumulated unused sick leave after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or after the expiration of a collective negotiations agreement or individual contract of employment with a relevant provision applicable to that officer or employee in effect on that date, shall be computed at a rate not to exceed 60 percent of the eligible officer’s or employee’s daily rate of pay for each day of accumulated unused sick leave based upon the salary or wage received during the year the leave was earned, with such rate to be determined by the employer or through a contract or agreement. An officer or employee who, on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement or individual contract of employment with a relevant provision applicable to that officer or employee in effect on that date, has accrued compensation based upon accumulated unused sick leave earned prior to the effective date, shall continue to be eligible to receive the amount so accrued based on that sick leave remaining credited on the date of retirement.

The political subdivision, or an agency, authority, or instrumentality thereof, as appropriate, shall develop such procedures for sick leave record keeping as may be necessary to ensure compliance with this section. The political subdivision of the State, or an agency, authority, or instrumentality thereof, may require an officer or employee who uses sick leave that is earned after the effective date or expiration date noted above to use that leave in a certain order based on when the leave was earned, and such a requirement shall not be subject to collective negotiations agreements or contract negotiations.

e. At no time shall the political subdivision, or an agency, authority, or instrumentality thereof, as appropriate, authorize or accept a special emergency appropriation to provide funds for the payment of accumulated unused sick leave pursuant to this section.

f. As used in this section, "officer or employee" means an elected official; or a person appointed by the Governor with the advice and consent of the Senate, or appointed by the Governor to serve at the pleasure of the Governor only during his or her term of office; or a person appointed by an elected public official or elected governing body of a political subdivision of the State, with the specific consent or approval of the elected governing body of the political subdivision that is substantially similar in nature to the advice and consent of the Senate for appointments by the Governor of the State as that similarity is determined by the elected governing body and set forth in an adopted ordinance or resolution, pursuant to guidelines or policy that shall be established by the Local Finance Board in the Department of Community Affairs, but not including a person who is employed or appointed in the regular or normal course of employment or appointment procedures and consented to or approved in a general or routine manner appropriate for and followed by the political subdivision, or the agency, authority or instrumentality of a political subdivision, or a person who holds a professional license or certificate to perform and is performing as a certified health officer, tax assessor, tax collector, municipal planner, chief financial officer, registered municipal clerk, construction code official, licensed uniform subcode inspector, qualified purchasing agent, or certified public works manager.

2. a. Notwithstanding any law, rule, or regulation to the contrary, a political subdivision of the State, or an agency, authority, or instrumentality thereof, that has not adopted the provisions of Title 11A of the New Jersey Statutes, may pay the accumulated unused sick leave earned by an officer or employee as supplemental compensation to that officer or employee, as further provided in this section.

(1) the number of accumulated unused sick leave hours eligible for payment shall not exceed the equivalent of three weeks sick leave;

(2) the number of accumulated unused sick leave hours eligible for payment shall not cause the officer or employee to have less than 100 working days of accumulated sick leave per year; and

d. The supplemental compensation for the payment of accumulated unused sick leave after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or after the expiration of a collective negotiations agreement or individual contract of employment with a relevant provision applicable to that officer or employee in effect on that date, shall be computed at a rate not to exceed 60 percent of the eligible officer’s or employee’s daily rate of pay for each day of accumulated unused sick leave based upon the salary or wage received during the year the leave was earned, with such rate to be determined by the employer or through a contract or agreement. An officer or employee who on the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), or upon the expiration of a collective negotiations agreement or individual contract of employment with a relevant provision applicable to that officer or employee in effect on that date, has accrued compensation based upon accumulated unused sick leave earned prior to the effective date, shall continue to be eligible to receive the amount so accrued based on that sick leave remaining credited on the date of retirement.

3. This act shall take effect on January 1 next following the date of enactment.

STATEMENT

Under current law, officers and employees of a board of education, or an agency or instrumentality thereof, a political subdivision of the State, or an agency, authority or instrumentality thereof, or of an independent State authority, or public institution of higher education eligible for payment for unused sick leave, may receive a maximum payment of $15,000 as supplemental compensation for accumulated unused sick. The amount is payable only at the time of retirement from a State-administered or locally-administered retirement system based on the leave credited on the date of retirement.

This bill allows a political subdivision of the State, or an agency, authority, or instrumentality thereof, regardless of whether or not it has adopted the provisions of Title 11A Civil Service of the New Jersey Statutes, may pay to an officer or employee the accumulated unused sick leave earned by that officer or employee on an annual basis, beyond the $15,000 permitted at retirement by current law. The payment of sick leave will be at the sole discretion of the political subdivision, or an agency, authority, or instrumentality thereof, as appropriate, and it will not be subject to collective negotiation agreements or individual contracts.

If a political subdivision, or an agency, authority, or instrumentality thereof, as appropriate, decides to pay unused sick leave, the bill specifies that: the number of sick leave hours eligible for payment cannot exceed the equivalent of three weeks sick leave; the number of sick leave hours eligible for payment cannot cause the employee to have less than 100 working days of sick leave per year; and the payment of supplemental compensation cannot occur more than once per calendar year.

Under current law, the supplemental compensation is computed at the rate of one-half of the eligible employee’s daily rate of pay for each day of accumulated sick leave based upon the compensation received during the last year of employment.

Under the bill, the supplemental compensation for accumulated unused sick leave after the effective date of the bill, or after the expiration of a collective negotiations agreement or individual contract of employment in effect on that date, will be computed at a rate not to exceed 60 percent of the eligible officer’s or employee’s daily rate of pay for each day of accumulated sick leave based upon the salary or wage received during the year the leave was earned. An officer or employee who uses sick leave that is earned after that effective date or expiration date may be required to use their leave in a certain order based on when the leave was earned, and such a requirement will not be subject to collective negotiations agreements or individual contracts.

Under current law, a political subdivision, or an agency, authority, or instrumentality thereof, as appropriate, may, when necessary, request a special emergency appropriation to provide funds for supplemental compensation of unused sick leave. Under the bill, at no time may the political subdivision, or an agency, authority, or instrumentality thereof, as appropriate, authorize or accept a special emergency appropriation to provide funds to buyback unused earned sick leave.

This bill does not apply to local boards of education.