Bill Text: NJ A5793 | 2018-2019 | Regular Session | Introduced
Bill Title: Prohibits public institutions of higher education from making certain payouts to departing employees that are not contractually obligated; requires Secretary of Higher Education to approve certain higher education employment contracts.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-11-07 - Introduced, Referred to Assembly Higher Education Committee [A5793 Detail]
Download: New_Jersey-2018-A5793-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
SYNOPSIS
Prohibits public institutions of higher education from making certain payouts to departing employees that are not contractually obligated; requires Secretary of Higher Education to approve certain higher education employment contracts.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain employee contracts and payouts at public institutions of higher education and supplementing chapter 3B of Title 18A of the New Jersey Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Notwithstanding any provision of law to the contrary, a public institution of higher education shall not make any payments to an employee or former employee for the purpose of sabbatical leave or employment severance unless the institution is contractually bound to pay that amount pursuant to the terms of the employment contract between the institution and the employee.
b. In the event that a public institution of higher education violates the provisions of this section, the State Treasurer shall debit from the institution's State operating aid an amount equal to the difference between any contractually-obligated amount and the amount actually paid by the institution to the employee or former employee.
2. Any multi-year contract between a public institution of higher education and an employee for a salary amount of more than $100,000 per year shall, prior to the execution of the contract, be reviewed and approved by the Secretary of Higher Education. The secretary shall adopt standards and criteria for the review and approval process.
3. This act shall take effect immediately.
STATEMENT
This bill prohibits a public institution of higher education from making any payments to an employee or former employee for the purpose of sabbatical leave or employment severance unless the institution is contractually bound to pay that amount pursuant to the terms of the employment contract between the institution and the employee. Under the bill, if a public institution of higher education violates this prohibition, the State Treasurer will debit from the institution's State operating aid an amount equal to the difference between any contractually-obligated amount and the amount actually paid by the institution to the employee or former employee.
In addition, the bill requires the Secretary of Higher Education to review and approve any multi-year contract between a public institution of higher education and an employee for a salary amount of more than $100,000 per year, prior to the execution of that contract. The secretary will adopt standards and criteria for the review and approval process.
