This bill allows political subdivisions of the State of New Jersey, or their agencies, authorities, or instrumentalities, to pay accumulated unused sick leave to certain officers and employees as supplemental compensation, regardless of whether they have adopted the provisions of Title 11A of the New Jersey Statutes. The decision to make such payments is at the sole discretion of the political subdivision and is not subject to collective negotiation agreements or individual contracts. The bill stipulates that the number of sick leave hours eligible for payment cannot exceed three weeks, must not reduce the employee's accumulated sick leave to less than 100 working days per year, and can only be paid once per calendar year.

Additionally, the bill modifies the computation of supplemental compensation for unused sick leave, increasing the maximum payment rate from 50% to 60% of the employee's daily rate of pay based on the salary received during the year the leave was earned. It also prohibits political subdivisions from authorizing or accepting special emergency appropriations for the payment of unused sick leave. The bill does not apply to local boards of education and establishes that procedures for sick leave record-keeping must be developed to ensure compliance with these provisions.