Binding Arbitration Changes

Posted by PBA 334 on December 10, 2010 at 5:13 PM




Senate and Assembly Committee pass binding arbitration changes

The Senate and Assembly today released from Committee legislation to temporarily amend the binding arbitration law after Governor Christie, Speaker Oliver and Senate President Sweeney came to an agreement today.

Under the provisions released today in S-5 and A-3393 arbitration awards will be limited to an average of 2% per year for increases in "base salary" for any contract that expires between January 1, 2011 and April 30, 2014.  The cap on awards does not apply to voluntary settlements or to agreements reached through mediation and does not apply to contracts expiring this year or that are already expired.

Arbitrators will now be selected randomly and all arbitrations must be complete within 45 days of filing for arbitration.

A task force will be established to review the impact of the law similar to what PERC does in analyzing the arbitration law.

The entire law ends at the end of the sunset period and arbitration returns to the current rules.

Click to download a Summary of the new legislation

*Source:  NJ State PBA Website


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