3/19/2014 - Council Adopts Measure to Cap Sick Time Payouts for Retirees

NEWS RELEASE


CITY OF HACKENSACK
John Labrosse Mayor
City Manager 201-646-3901 
March 19, 2014 

COUNCIL ADOPTS MEASURE 
TO CAP SICK TIME PAYOUTS FOR RETIREES


In an effort to control accumulated sick time payouts to retiring city employees the city council last night approved a measure capping accumulated sick time payouts at $15,000.

The new sick time payout cap will cover all new hires that are not covered by a collective bargaining agreement. There are between 75 and 100 city employees – out of total workforce 480 – who are not covered by collective bargaining contracts.

“The new ordinance limiting sick time payouts is an important step in cutting unnecessary spending by the new administration. It will be the position of the city in future collective bargaining negotiations that sick time is to be capped at $15,000. Sick time is for employees who are sick, it’s not an annuity investment,” said City Manager Anthony Rottino.

Currently sick time payouts for both union and non union employees who were hired after January 1, 1987 are capped at 75 percent of an employee salary accrued sick time up to 50 percent of their salary.

Mayor Labrosse said he urges the state legislature to take up the issue of accumulated sick time payments for government employees to help municipalities cut costs.

“It is burdensome to local taxpayers to have to pay hefty five and six figure figures to pay for unused sick time that was accumulated over 20 years or more,” said Labrosse. "I believe it is incumbent on the legislature to act to create one uniform policy for all government workers in the state and thereby lift a financial burden from taxpayers."