O’Scanlon Introduces Bill To Apply Cap To All New Public Employee Arbitration Awards

TRENTON — Concerned that a significant number of already-expired public employee contracts would not be subject to the proposed two percent cap on arbitration awards to public employee unions, Assemblyman Declan O’Scanlon introduced a measure clarifying that the cap would apply to contracts that expired before the cap begins on Jan. 1.

“A significant percentage of municipalities and property taxpayers will conceivably see no benefit from the two percent cap until we’re two or three years into the 3.5-year window,” said O’Scanlon (R-Monmouth and Mercer.) “I hope the arbitrators who are going to award these contracts pay attention to the current cap laws and to the dire times municipalities and property taxpayers find themselves in and design reasonable, conservative contracts that don’t blow massive holes in municipal budgets.


“If we find this is not the case, this legislation will be there ready to go at a moment’s notice,” O’Scanlon said.

The bill, A-3652, simply extends the benefit of the proposed arbitration cap to the contracts that are already expired and would not technically have to comply under the cap that was approved Monday by the General Assembly.

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