N.J.’s Hefty Public-Worker Payouts Targeted as Towns Flout Ban

A Republican lawmaker is drafting legislation to punish New Jersey towns that shirk a state law by giving public workers payouts of more than $15,000 for unused sick time. Taxpayers could save millions of dollars if the legislation is approved.

The bill, by Assemblywoman Nancy Munoz of Summit, proposes cutting state aid to local governments that violate 2007 and 2010 laws which cap these so-called bonuses paid to public employees. In one recent case, a retired borough administrator received $160,000 “in unlawful sick and vacation-leave payouts,” according to a July 7 state comptroller’s report.

In all, 57 of 60 towns ...