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Dear Mayor:
On Thursday, the Senate Labor Committee is scheduled to vote on a draft Committee Substitute for S-477. Your immediate action is needed on this State mandated legislation.
Senate Bill 477, termed the “Responsible Employer Act” requires municipalities, school districts, authorities, the business community, etc. to provide health benefits or pay a healthcare tax for any employee who works in excess of 15 hours per week. Most municipalities define part-time as 25 hours a week and those employees do not get the full benefit package.
This bill would effectively extend health benefits to school traffic guards, special law enforcement officers and seasonal employees (recreational department or public works department employees who work more than 15 hours a week, even if only during the June-August period).
From our reading of the bill, independent contractors hired to perform snow plowing, building maintenance work, etc. would be covered under the concept of contracted employees even though they are not directly on the municipal payroll.
In addition, the legislation would allow municipalities, as part of their public contracting , to impose a variety of employee benefit requirements on any company contracting with the town. This will lead to great inconsistency among municipalities and will result in increased costs to property taxpayers.
It is imperative that S-477 is stopped in its track. Its adoption would have a tremendous effect on Municipalities and could drive Business away from our State. Passage of this bill would demonstrate a willful disregard of skyrocketing healthcare costs and the call for structural reform of an increasingly expensive health benefits system. Increasing taxes on our taxpayers is not reform.
I urge you to immediately contact the sponsor, Senator Sweeney and members of the Senate Labor Committee and urge them not to proceed with S-477. Time is of the essence so contact must be by email, phone and/or fax. Contact information is provided.
For further information, direct all inquires to Helen Yeldell at (609) 695-3481 ext. 12 or by email to hyeldell@njslom.com.
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