New Jersey § 34:13a-16

§ 34:13a-16.

a. As used in this section: “ Base salary ” means the salary provided pursuant to a salary guide or table and any amount provided

pursuant to a salary increment, including any amount provided for longevity or length

of service. It also shall include any other item agreed to by the parties, or any other item

that was included in the base salary as understood by the parties in the prior contract. Base salary shall not include non-salary economic issues, pension and health and

medical insurance costs. “ Non-salary economic issues ” means any economic issue that is not included in the definition of base salary. b. An arbitrator shall not render any award pursuant to section 3 of P.L.1977, c.

85 ( C.34:13A-16 ) which, in the first year of the collective negotiation agreement awarded by the arbitrator , increases base salary items by more than 2.0 percent of the aggregate amount expended

by the public employer on base salary items for the members of the affected employee

organization in the twelve months immediately preceding the expiration of the collective

negotiation agreement subject to arbitration . In each subsequent year of the agreement awarded by the arbitrator, base salary

items shall not be increased by more than 2.0 percent of the aggregate amount expended

by the public employer on base salary items for the members of the affected employee

organization in the immediately preceding year of the agreement awarded by the arbitrator. The parties may agree, or the arbitrator may decide, to distribute the aggregate monetary

value of the award over the term of the collective negotiation agreement in unequal

annual percentage increases, which shall not be greater than the compounded value of a 2.0

percent increase per year over the corresponding length of the collective negotiation

agreement . An award of an arbitrator shall not include base salary items and non-salary economic

issues which were not included in the prior collective negotiations agreement.