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Posted on: December 3, 2018

Shared Services Pilot Program Expanded

On November 27, Governor Murphy signed into law A-1100, which added Monmouth and Atlantic County as pilot counties for the purposes of “Common Sense Shared Services Pilot Program Act.” Effective immediately municipal governing bodies located in Atlantic and Monmouth County would be permitted to remove a tenured municipal clerk, chief financial officer, tax collector, municipal treasurer, tax assessor or municipal superintendent of public works to effectuate a shared service agreement deemed to be in the interest of the economy and efficiency of the municipalities.

P.L. 2018, c. 140 also made the following amendments to the Act. 

•    Requires the agreement to address the proportion of work hours that must be dedicated to each pilot municipality and any additional compensation the employee may receive from assuming additional duties; 

•    Prohibits the reduction of any additional compensation received under the agreement for assuming additional duties without good cause; and 

•    If the shared service agreement is canceled or expires within two years immediately following the dismissal of a tenured official, the reappointed employee is entitled to the same level of salary or wages the employee had received at the time of dismissal plus any increases in salary granted to all other tenured employees by ordinance while the shared service agreement was in effect. 

As a reminder, the Common Sense Shared Service Pilot Program Act includes protections for the tenured employee, but does provide participating municipalities with another tool for increased opportunities for shared services.

Contact: Lori Buckelew, Senior Legislative Analyst, lbuckelew@njslom.org, 609-695-3481, x112.


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