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October 26, 2010

RE: I. Sick Leave Pay-out Limits Advances to Governor
II. Sample Resolution Supporting Arbitration Reform with Award Caps

Dear Mayor:

I. Sick Leave Pay-out Limits  Advances to Governor

Yesterday in Trenton, the Assembly passed S-2220.

This initiative would limit current and future employees’ accumulated sick leave compensation to $15,000 and limit the carrying forward of vacation leave for one year only.  However, current employees would be permitted to retain any supplemental compensation for unused sick leave, or to carry forward any vacation leave, already accrued as of the bill’s effective date.  If their supplemental compensation exceeds $15,000 they will be permitted to continue to accumulate the time, however, they will not be compensated for the additional just time.

In addition, S-2220 would impose limits on the use of sick leave by a State, local, or board of education employee, hired after the bill’s effective date, in the twelve months before retirement.  The bills prohibit the use of six or more consecutive days of accumulated sick leave, without medical necessity verified in writing by a physician, in the twelve months prior to retirement.  The municipality may require the employee to submit to an examination by a physician, selected by the employer, to verify the medical necessity.  If an employee is found to be in violation of this provision, the municipality must impose a fine and issue a reprimand against the employee found to be in violation of this prohibition, with the fine to be an amount equivalent to three times the daily rate of compensation for each day of violation.  For subsequent violations of the prohibition, the employee would forfeit a number of sick leave days equivalent to the number found to have been used in violation for the purpose of calculating supplemental compensation for the employee at the time of retirement.

The bill, which had already won State Senate approval, now goes to Governor Christie for final action. We salute the sponsors, Senator Sarlo, Assemblywomen Lampitt and Casagrande and Assemblyman Albano, for their leadership and effort to advance this management reform.  For additional information on this bill please see our Dear Mayor letter of October 19, 2010.

Please contact Governor Christie and urge him to sign S-2220.

If you have any questions on this, contact Lori Buckelew at 609-695-3481, ext. 112.

II. Sample Resolution Supporting Arbitration Reform with Awards Cap

A number of municipalities have asked for a sample resolution in support of our position on Arbitration Reform. See our letter of October 22 for details. That letter is accessible at

We have posted a sample resolution for your consideration. It is also on-line at:

If you have any questions on this, contact Jon Moran at 609-695-3481, ext. 121.


Very truly yours,

William G. Dressel, Jr.
Executive Director




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