This bill amends New Jersey law to permit political subdivisions, along with their agencies and authorities, to purchase accumulated unused sick leave from employees under specific conditions. The purchase price will be determined based on the employee's pensionable compensation at the time of the transaction, with a cap of 60% of the sick leave's dollar value. Additionally, there are restrictions on the number of hours that can be purchased annually, limited to 120 hours, and employees must retain a minimum of 800 hours of accumulated sick leave post-purchase. The bill clarifies that these transactions are discretionary and not subject to collective negotiation, allowing political subdivisions to decide whether to engage in such purchases.

Moreover, the bill amends N.J.S.40A:4-53 to explicitly prevent local units from enacting ordinances for special emergency appropriations aimed at purchasing unused sick leave before an employee's layoff or retirement. This amendment is designed to ensure that sick leave purchases occur only under appropriate circumstances, rather than as a preemptive action before layoffs. The bill will take effect immediately upon passage, maintaining the existing cap on supplemental compensation for unused sick leave at $15,000 for both current and future employees.

Statutes affected:
Introduced: 11A:6-19.1, 11A:6-19.2, 40A:9-10.2, 40A:9-10.4