Bill Text: NJ S292 | 2020-2021 | 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) 2020-01-14 - Introduced in the Senate, Referred to Senate Higher Education Committee [S292 Detail]

Download: New_Jersey-2020-S292-Introduced.html

---

SENATE, No. 292

STATE OF NEW JERSEY

219th LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION

 

 

Sponsored by:

Senator  JOSEPH PENNACCHIO

District 26 (Essex, Morris and Passaic)

 

 

 

 

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

     Introduced Pending Technical Review by Legislative Counsel.

  

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.