This bill amends New Jersey law to permit political subdivisions and their agencies to purchase accumulated unused sick leave from employees under specific conditions. The purchase price will be based on the employee's pensionable compensation at the time of the transaction, with a maximum payment of 60% of that value. Additionally, the bill limits the purchase to a maximum of 120 hours of sick leave per year and requires that employees retain at least 800 hours of accumulated sick leave after the purchase. The bill also clarifies that these transactions are discretionary and not subject to collective negotiation, allowing political subdivisions to independently decide whether to engage in such purchases.

Moreover, the bill introduces a prohibition against local units adopting ordinances for special emergency appropriations aimed at purchasing accumulated unused sick leave prior to an employee's layoff or retirement. This amendment is designed to ensure that such purchases occur only under appropriate circumstances, thereby preventing potential misuse of funds. The bill is set to take effect immediately upon passage, providing more flexibility for political subdivisions while safeguarding employees' sick leave entitlements.

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