A Capehart Scatchard Blog

Tag: collective bargaining

Governor Signs Law Establishing New Health Care Plans and Contribution Levels

On July 1, 2020, Governor Philip Murphy signed Senate Bill 2273 which requires alterations in health insurance plans and changes to school employee contributions toward the cost of health coverage.  The law takes effect immediately and in some respects overrides collective negotiations agreement provisions.  The new law will impact negotiations, budgeting and insurance benefit planning.  Key components include: Establishment of New Jersey Educators Health Plan (“NJEHP”) by the School Employees’ Health Benefit Program (“SEHBP”) for the 2021 plan year and creation of an equivalent plan by non-SEHBP school districts; Establishment of a less costly Garden State Health Plan (“GSHP”) by the […]

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N.J. Supreme Court Decides Issue on Compensation for Unused Sick Time

On April 20, 2020, the New Jersey Supreme Court issued an important decision regarding a teacher’s right to compensation for unused sick leave at the time of retirement or separation from a board of education. In Barila v. Board of Education of Cliffside Park, the State’s Supreme Court held that the unambiguous terms of the collective bargaining agreement between the teachers’ union and the board of education dictated the right to sick leave compensation upon retirement and such agreement did not violate a vested right. The Cliffside Park Education Association (“Association”) is the exclusive collective bargaining representative for all teachers […]

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Subcontracting Restrictions and Changes in Health Insurance Plans and Employee Contributions Likely Coming Very Soon

By on March 20, 2020 in Legislation, NJ School Law with 0 Comments

On March 19, 2020, the Senate approved two significant bills stemming from Senator Sweeney’s deal with the New Jersey Education Association (“NJEA”).  One bill requires alterations in health insurance plans and modifications to employee contributions to the cost of health coverage.  The other bill places restrictions on the ability of certain employers, including a school district,  to subcontract work of employees in a collective bargaining unit.  While not enacted yet, both pieces of legislation appear to be on the fast track to approval.  If enacted, they will take effect immediately. Key components of the bill altering health insurance and employee […]

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Appellate Division Rules Chapter 78 Does Not Preempt Terms of CNA

The Ridgefield Park Education Association (“Association”) filed an appeal with the New Jersey Appellate Division challenging a ruling by the Public Employment Relations Commission (“PERC”) in favor of the Ridgefield Park Board of Education (“Board”), which held that Chapter 78 preempted the terms of the parties’ collective negotiations agreement (“CNA”) for the period July 1, 2014 to June 30, 2018. On May 3, 2019, the Appellate Division reversed PERC’s determination in In the Matter of Ridgefield Park Board of Education and Ridgefield Park Education Association and remanded the matter to PERC to implement a remedial mechanism to refund the excess […]

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Appellate Division Upholds Arbitrator’s Decision to Limit Increment Withholding

On January 28, 2019, the Appellate Division affirmed an arbitrator’s decision to limit the withholding of a teacher’s increment to one year. In Trenton Board of Education v. Trenton Education Association, the Trenton Board of Education (“Board”) approved the withholding of a teacher’s increment for an indefinite period of time. The Trenton Education Association (“Association”) challenged that decision. During the 2015-2016 school year, the Board employed Carmel Gabriel as a middle school teacher. The principal, who was Gabriel’s direct supervisor, and vice principal cited him for various deficiencies, such as problems with his teaching practices, failure to attend mandatory meetings, and […]

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Districts Ordered to Pay Increments Upon Expiration of Contract

Editor: Sanmathi (Sanu) Dev, Esq. The question of whether a school district with a collective bargaining agreement of less than five years in duration is required to pay the increment for teaching staff members at the expiration of the agreement has existed since the amendment of N.J.S.A. 18:29-4.1.  The amendment permits school districts to adopt a salary policy schedule for a period of up to five years. In In the Matter of Englewood Board of Education and Englewood Teachers’ Association (decided October 29, 2018) and In the Matter of Cliffside Park Board of Education and Cliffside Park Education Association (decided […]

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Appellate Division Affirms School Calendar is Non-Negotiable

On August 28, 2018, the New Jersey Appellate Division in West Morris Regional High School Board of Education v. Morris Regional Education Association, affirmed the Public Employment Relations Commission’s (“PERC”) determination that the start and end date of the school calendar is a non-negotiable managerial prerogative. The dispute involved the collective bargaining agreement (“CBA”) between the West Morris Regional High School Board of Education (“Board”) and the West Morris Education Association (“Association”). During their negotiations of a successor CBA, the Board sought to remove the following phrase from the CBA: “teachers…shall be employed from September 1 through June 30.” The […]

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Cadillac Tax on Health Care Plans Delayed Again

By on January 24, 2018 in Legislation, NJ School Law with 0 Comments

Editor: Sanmathi (Sanu) Dev, Esq. In the context of labor negotiations, health benefits is an important issue to both sides of the bargaining table. On January 22, 2018, Congress passed and the President signed into law a two-year delay on the Affordable Care Act’s (“ACA”) 40% excise tax on health care plans, also known as the Cadillac tax. The 40% excise tax applies to the amount by which the cost of coverage exceeds certain monetary thresholds. For individual and family coverage, the annual premium thresholds are $10,800 and $29,500, respectively. The tax was initially slated to go into effect January 1, […]

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Atlantic County and Bridgewater Township Required to Continue Step Increases After Expiration of Contracts

Editor: Sanmathi (Sanu) Dev, Esq. The New Jersey Supreme Court on August 3, 2017 decided In re County of Atlantic in which it held that the salary increment systems in collective bargaining agreements between two public entities, Atlantic County and the Township of Bridgewater, and their respective FOP and PBA unions remained in effect after the agreements’ expiration dates. The County and Township were required to pay salary step increases during the period between the expiration of those contracts and the formation of their successor agreements. Accordingly, the Court upheld the Appellate Division’s ruling in favor of the unions. The […]

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