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S 4562

Permits payment of unused sick leave earned by certain local government officers and employees under certain circumstances.

2024-2025 Regular Session Introduced by Brian Stack

NJ local governments may pay unused sick leave as discretionary supplemental pay, up to 3 weeks, at 60% of the daily rate, preserving at least 100 days of leave, once per year.

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
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Bill Summary · S 4562

Bill Synopsis: S 4562 – Payment of Unused Sick Leave for Local Government Employees

Overview

S 4562, introduced February 7, 2025, would authorize New Jersey political subdivisions and their agencies to pay out accumulated unused sick leave to certain local government officers and employees as supplemental compensation under specified conditions. The bill covers both subdivisions that have adopted Title 11A (the Civil Service system) and those that have not, with parallel provisions for each track. The payment is at the sole discretion of the subdivision and would not be subject to collective negotiations or individual contracts.

Sponsored by Jamaal Bailey (primary) with Dean Murray (cosponsor), the bill was referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee.

Purpose and Intent

  • Allow local governments to provide a one-time supplemental payout to employees based on unused sick leave.
  • Establish limits and guardrails to ensure such payments are discretionary, controlled, and not used to circumvent established pay, benefits, or bargaining outcomes.
  • Create uniform payroll procedures for recording and administering any such payments.

Key Provisions

Section 1 – Local governments that have adopted Title 11A (Civil Service)

  • A political subdivision, or its agency/authority/instrumentality (excluding local boards of education), may pay accumulated unused sick leave as supplemental compensation.
  • Payment is discretionary and not subject to collective bargaining agreements or individual contracts.
  • Eligibility limits:
    • Up to the equivalent of three weeks of sick leave may be paid.
    • Payment must not reduce the employee’s annual sick leave below 100 working days.
    • Payments may occur at most once per calendar year on a date set by the subdivision.
  • Compensation rate:
    • Payments must be calculated at up to 60% of the employee’s daily rate of pay for each day of accumulated unused leave.
    • The 60% rate is based on the salary/wage for the year the leave was earned and is determined by the employer or through a contract/ agreement.
    • Employees accruing compensation prior to the bill’s effective date or the expiration of applicable contracts can continue to receive amounts based on the leave remaining credited at retirement.

  • Administrative requirements:

    • Subdivisions must develop record-keeping procedures to ensure compliance.
    • Subdivisions may require employees to use post-earnings leave in a prescribed order (based on when leave was earned); such sequencing is not subject to negotiations.

  • Prohibition on funding:

    • No special emergency appropriation may be used to fund these payments.

  • Definitions:

    • “Officer or employee” includes elected officials and certain appointed officials with Senate-like appointment power (Governor appointments, or appointments by elected officials with governing body consent), but excludes specific professional staff (e.g., health officer, tax assessor, municipal planner, CFO, and several other listed roles).

Section 2 – Local governments that have not adopted Title 11A

  • Mirrors Section 1 for subdivisions that have not adopted Title 11A, with the same discretionary payment framework, caps, rate, timing, and recordkeeping requirements.

  • The same prohibition on using special emergency appropriations applies and the same sequencing rights for leave earned after the effective date or after contract expiration.

Eligibility and Affected Parties

  • Affects elected officials and certain appointed officers/employees within local governments (excluding local boards of education).
  • Broadly includes personnel appointed by governors or local governing bodies with specified approval processes; excludes certain professionals listed in the bill.

Procedural and Timeline Aspects

  • Status: Introduced in the Senate and referred to the Senate State Government, Wagering, Tourism & Historic Preservation Committee (as of June 2, 2025).
  • Effective date: Not specified in the introduced text; references to an “effective date” tied to the bill’s enactment or to expiration of collective agreements suggest a future effective date to be determined by the Legislature.
  • No funding through emergency appropriations is allowed.

Potential Impact

  • Provides local governments with a tool to recognize long-term service via a capped, discretionary payout.
  • Creates a consistent framework (for both Title 11A-adopting and non-adopting entities) to limit payout amounts, ensure minimum sick leave remains, and standardize administration.
  • Potential fiscal implications for participating entities depend on the size of staff, unused leave balances, and the chosen payout date.

For readers seeking to understand a specific jurisdiction’s exposure, review the local agency’s adoption of Title 11A, bargaining agreements, and personnel records to estimate potential payouts under the bill’s caps.

Compiled from official sources — confirm details with the bill’s official record.

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