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New Jersey Bill A689 Eliminates Future Sick Leave Payouts and Restricts Vacation Carry-Forward for Public Employees

Original title: Eliminates payments for unused sick leave earned after effective date; limits carry forward of unused vacation leave; requires suspension and forfeiture of certain payments; limits use of unused sick leave in year before retirement.

Last action · January 13, 2026: Introduced, Referred to Assembly State and Local Government CommitteeSponsors: McGuckin, Gregory P. and 1 other

Introduced
Committee
Floor Vote
Passed
Law

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What This Bill Would Do

Assembly Bill 689 eliminates the payment of for unused sick leave earned after the bill's effective date by public officers and employees at the state, county, municipal, and school board levels. The bill also restricts the carry-forward of unused vacation leave, suspends and forfeits leave payouts for employees indicted or convicted of crimes involving their office, and prohibits using six or more consecutive days of sick leave in the year before retirement without medical verification.

Why it matters

Public employees and educators across New Jersey will lose the ability to cash out sick leave earned after the law takes effect and face strict penalties, including fines and termination, for unverified consecutive sick leave usage before retirement.

Background
  • New Jersey has historically permitted public employees to accumulate unused sick and vacation leave, leading to substantial cash payouts, commonly known as 'sick leave bank' or 'terminal leave' payouts, upon retirement. context
  • Previous legislative measures, including P.L.2007, c.92 and P.L.2010, c.3, established caps and restrictions on supplemental compensation for public employees hired after specific dates. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

public employees

Public employees face new restrictions on earning future sick leave payouts, limits on carrying forward vacation leave, and mandatory suspension or forfeiture of leave compensation upon indictment or conviction.

Directly affected

public employers

State agencies, local governments, boards of education, and public universities must enforce new leave limits, administer medical verifications for pre-retirement sick leave, and impose disciplinary penalties for violations.

Directly affected

Attorney General

The Attorney General is required to develop guidelines or procedures to notify public employers when active or former officers or employees are indicted or convicted of crimes involving their office.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

Will I lose sick leave I already earned before this bill takes effect?
No. Sick leave accrued prior to the effective date remains eligible for at retirement, subject to existing statutory caps.
What happens to my vacation leave if I cannot use it because of work demands?
Unused vacation leave accrued in a given year due to business demands must be used during the next succeeding year, unless it was unspent due to duties directly related to a Governor-declared state of emergency.
Can I take extended sick leave right before I retire?
For school board and certain local government employees, taking six or more consecutive days of sick leave in the 12 months prior to retirement without a physician's written verification of medical necessity is prohibited and subject to fines, unpaid leave status, or termination.
What happens to my leave payouts if I am accused of a crime related to my job?
Payment of for accumulated unused sick and vacation leave is suspended if an employee is indicted for a crime involving or touching their employment, and permanently forfeited if they are convicted.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

1 action
  1. Jan 13, 2026HouseIntroduced
    Introduced, Referred to Assembly State and Local Government Committee

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

McGuckin, Gregory P.Primary sponsorNo profile match

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift99% confidence

Transition Away from Post-Retirement Sick Leave Payouts

The legislation systematically cuts off future accruals of cashable sick leave across all public sectors in New Jersey while preserving previously accrued amounts under prior statutory caps.

Connected Entities

University of Medicine and Dentistry of New Jersey, General Assembly, Local Finance Board and 7 more
OrganizationUniversity of Medicine and Dentistry of New Jersey“Public institution of higher education covered by the bill”Map →
OrganizationGeneral Assembly“Legislative body considering the bill”Map →
OrganizationLocal Finance Board“Establishes guidelines or policy for political subdivision appointments under th”Map →
OrganizationDepartment of Community Affairs“Houses the Local Finance Board”Map →
PersonAura Dunn“Co-sponsor of Assembly Bill No. 689”Map →
OrganizationAttorney General“Required to develop guidelines or procedures for notifying public employers of e”Map →
OrganizationRutgers, The State University“Public institution of higher education covered by the bill”Map →
OrganizationNew Jersey Institute of Technology“Public institution of higher education covered-by the bill”Map →
PersonGregory P. McGuckin“Primary sponsor of Assembly Bill No. 689”Map →
OrganizationDepartment of Education“Establishes guidelines or policy for political subdivision appointments”Map →

Sources

Open source document

njleg.state.nj.us

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy75
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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