New Jersey § 34:13a-16

§ 34:13a-16.

a. (1) Negotiations between a public fire or police department and an exclusive representative

concerning the terms and conditions of employment shall begin at least 120 days prior

to the day on which their collective negotiation agreement is to expire. The parties shall meet at least three times during that 120-day period. The first of those three meetings shall take place no later than the 90th day prior

to the day on which their collective negotiation agreement is to expire. By mutual consent, the parties may agree to extend the period during which the second

and third meetings are required to take place beyond the day on which their collective

negotiation agreement is to expire. A violation of this paragraph shall constitute an unfair practice and the violator

shall be subject to the penalties prescribed by the commission pursuant to rule and

regulation. Prior to the expiration of their collective negotiation agreement, either party may

file an unfair practice charge with the commission alleging that the other party is

refusing to negotiate in good faith. The charge shall be filed in the manner, form and time specified by the commission

in rule and regulation. If the charge is sustained, the commission shall order that the respondent be assessed

for all legal and administrative costs associated with the filing and resolution of

the charge; if the charge is dismissed, the commission shall order that the charging

party be assessed for all legal and administrative costs associated with the filing

and resolution of the charge. The filing and resolution of the unfair practice charge shall not delay or impair

the impasse resolution process. (2) Whenever those negotiations concerning the terms and conditions of employment

shall reach an impasse, the commission, through the Division of Public Employment

Relations shall, upon the request of either party, or upon its own motion take such

steps, including the assignment of a mediator, as it may deem expedient to effect

a voluntary resolution of the impasse. b. (1) In the event of a failure to resolve the impasse by mediation, the Division

of Public Employment Relations, at the request of either party, shall invoke factfinding

with recommendation for settlement of all issues in dispute unless the parties reach

a voluntary settlement prior to the issuance of the factfinder's report and recommended

terms of settlement. Factfinding shall be limited to those issues that are within the required scope

of negotiations unless the parties to the factfinding agree to factfinding on permissive

subjects of negotiation. (2) Notwithstanding the provisions of paragraph (2) of subsection a. of this section

or paragraph (1) of this subsection, either party may petition the commission for

arbitration on or after the date on which their collective negotiation agreement expires. The petition shall be filed in a manner and form prescribed by the commission. The party filing the petition shall notify the other party of its action. The notice shall be given in a manner and form prescribed by the commission. Any mediation or factfinding invoked pursuant to paragraph (2) of subsection a. of

this section or paragraph (1) of subsection b. of this section shall terminate immediately

upon the filing of a petition for arbitration. (3) Upon the filing of a petition for arbitration pursuant to paragraph (2) of this

subsection, an arbitrator selected pursuant to paragraph (1) of subsection e. of this

section shall conduct an initial meeting as a mediation session to effect a voluntary

resolution of the impasse. c. (Deleted by amendment, P.L.2010, c. 105 ) d. The resolution of issues in dispute shall be binding arbitration under which the

award on the unsettled issues is determined by conventional arbitration. The arbitrator shall determine whether the total net annual economic changes for

each year of the agreement are reasonable under the nine statutory criteria set forth

in subsection g. of this section and shall adhere to the limitations set forth in

section 2 of P.L.2010, c. 105 ( C.34:13A-16.7 ). The non-petitioning party, within five days of receipt of the petition, shall separately

notify the commission in writing of all issues in dispute. The filing of the written response shall not delay, in any manner, the interest

arbitration process. e. (1) The commission shall take measures to assure the impartial selection of an

arbitrator or arbitrators from its special panel of arbitrators. On the first business day following receipt of an interest arbitration petition,

the commission shall, independent of and without any participation by either of the

parties, randomly select an arbitrator from its special panel of arbitrators. The selection by the commission shall be final and shall not be subject to review

or appeal. (2) Applicants for initial appointment to the commission's special panel of arbitrators

shall be chosen based on their professional qualifications, knowledge, and experience,

in accordance with the criteria and rules adopted by the commission. Such rules shall include relevant knowledge of local government operations and budgeting. Appointment to the commission's special panel of arbitrators shall be for a three-year

term, with reappointment contingent upon a screening process similar to that used

for determining initial appointments. Arbitrators currently serving on the panel shall demonstrate to the commission their

professional qualification, knowledge and experience, in accordance with the criteria

and rules adopted by the commission, within one year of the effective date of this

act. Any arbitrator who does not satisfactorily demonstrate such to the commission within

the specified time shall be disqualified. (3) Arbitrators serving on the commission's special panel shall be guided by and subject

to the objectives and principles set forth in the “Code of Professional Responsibility

for Arbitrators of Labor-Management Disputes” of the National Academy of Arbitrators,

the American Arbitration Association, and the Federal Mediation and Conciliation Service. (4) Arbitrators shall be required to complete annual training offered by the State

Ethics Commission. Any arbitrator failing to satisfactorily complete the annual training shall be immediately

removed from the special panel. The commission may suspend, remove, or otherwise discipline an arbitrator for a violation

of P.L.1977, c. 85 ( C.34:13A-14 et seq. ), section 4 of P.L.1995, c. 425 ( C.34:13A-16.1 ) or for good cause. An arbitrator who fails to render an award within the time requirements set forth

in this section shall be fined $ 1,000 for each day that the award is late. f. (1) At a time prescribed by the commission, the parties shall submit to the arbitrator

their final offers on each economic and non-economic issue in dispute. The offers submitted pursuant to this section shall be used by the arbitrator for

the purposes of determining an award pursuant to subsection d. of this section. (2) In the event of a dispute, the commission shall have the power to decide which

issues are economic issues. Economic issues include those items which have a direct relation to employee income

including wages, salaries, hours in relation to earnings, and other forms of compensation

such as paid vacation, paid holidays, health and medical insurance, and other economic

benefits to employees. (3) Throughout formal arbitration proceedings the chosen arbitrator may mediate or

assist the parties in reaching a mutually agreeable settlement. All parties to arbitration shall present, at the formal hearing before the issuance

of the award, written estimates of the financial impact of their last offer on the

taxpayers of the local unit to the arbitrator with the submission of their last offer. (4) Arbitration shall be limited to those subjects that are within the required scope

of collective negotiations, except that the parties may agree to submit to arbitration

one or more permissive subjects of negotiation. (5) The decision of an arbitrator or panel of arbitrators shall include an opinion

and an award, and shall be rendered within 90 calendar days of the commission's assignment

of that arbitrator. Each arbitrator's decision shall be accompanied by a written report explaining how

each of the statutory criteria played into the arbitrator's determination of the final

award. The report shall certify that the arbitrator took the statutory limitations imposed

on the local levy cap into account in making the award. Any arbitrator violating the provisions of this paragraph may be subject to the commission's

powers under paragraph (3) of subsection e. of this section. The decision shall be final and binding upon the parties and shall be irreversible,

except: (a) Within 14 calendar days of receiving an award, an aggrieved party may file notice

of an appeal of an award to the commission on the grounds that the arbitrator failed

to apply the criteria specified in subsection g. of this section or violated the standards

set forth in N.J.S.2A:24-8 or N.J.S.2A:24-9 . The appeal shall be filed in a form and manner prescribed by the commission. In deciding an appeal, the commission, pursuant to rule and regulation and upon

petition, may afford the parties the opportunity to present oral arguments. The commission may affirm, modify, correct or vacate the award or may, at its discretion,

remand the award to the same arbitrator or to another arbitrator, selected by lot,

for reconsideration. The commission's decision shall be rendered no later than 60 calendar days after

the filing of the appeal with the commission. Arbitration appeal decisions shall be accompanied by a written report explaining how

each of the statutory criteria played into their determination of the final award. The report shall certify that in deciding the appeal, the commission took the local

levy cap into account in making the award. An aggrieved party may appeal a decision of the commission to the Appellate Division

of the Superior Court. (b) An arbitrator's award shall be implemented immediately. (6) The parties shall share equally the costs of arbitration subject to a fee schedule

approved by the commission. The fee schedule shall provide that the cost of services provided by the arbitrator

shall not exceed $ 1,000 per day. The total cost of services of an arbitrator shall not exceed $ 10,000. If the parties cancel an arbitration proceeding without good cause, the arbitrator

may impose a fee of not more than $ 500. The parties shall share equally in paying that fee if the request to cancel or adjourn

is a joint request. Otherwise, the party causing such cancellation shall be responsible for payment

of the entire fee. g. The arbitrator shall decide the dispute based on a reasonable determination of

the issues, giving due weight to those factors listed below that are judged relevant

for the resolution of the specific dispute. In the award, the arbitrator or panel of arbitrators shall indicate which of the

factors are deemed relevant, satisfactorily explain why the others are not relevant,

and provide an analysis of the evidence on each relevant factor; provided, however,

that in every interest arbitration proceeding, the parties shall introduce evidence

regarding the factor set forth in paragraph (6) of this subsection and the arbitrator

shall analyze and consider the factor set forth in paragraph (6) of this subsection

in any award: (1) The interests and welfare of the public. Among the items the arbitrator or panel of arbitrators shall assess when considering

this factor are the limitations imposed upon the employer by P.L.1976, c. 68 ( C.40A:4-45.1 et seq. ). (2) Comparison of the wages, salaries, hours, and conditions of employment of the

employees involved in the arbitration proceedings with the wages, hours, and conditions

of employment of other employees performing the same or similar services and with

other employees generally: (a) In private employment in general; provided, however, each party shall have the

right to submit additional evidence for the arbitrator's consideration. (b) In public employment in general; provided, however, each party shall have the

right to submit additional evidence for the arbitrator's consideration. (c) In public employment in the same or similar comparable jurisdictions, as determined

in accordance with section 5 of P.L.1995, c. 425 ( C.34:13A-16.2 ); provided, however, that each party shall have the right to submit additional evidence

concerning the comparability of jurisdictions for the arbitrator's consideration. (3) The overall compensation presently received by the employees, inclusive of direct

wages, salary, vacations, holidays, excused leaves, insurance and pensions, medical

and hospitalization benefits, and all other economic benefits received. (4) Stipulations of the parties. (5) The lawful authority of the employer. Among the items the arbitrator or panel of arbitrators shall assess when considering

this factor are the limitations imposed upon the employer by P.L.1976, c. 68 ( C.40A:4-45.1 et seq. ). (6) The financial impact on the governing unit, its residents, the limitations imposed

upon the local unit's property tax levy pursuant to section 10 of P.L.2007, c. 62 ( C.40A:4-45.45 ), and taxpayers. When considering this factor in a dispute in which the public employer is a county

or a municipality, the arbitrator or panel of arbitrators shall take into account,

to the extent that evidence is introduced, how the award will affect the municipal

or county purposes element, as the case may be, of the local property tax; a comparison

of the percentage of the municipal purposes element or, in the case of a county, the

county purposes element, required to fund the employees' contract in the preceding

local budget year with that required under the award for the current local budget

year; the impact of the award for each income sector of the property taxpayers of

the local unit; the impact of the award on the ability of the governing body to (a)

maintain existing local programs and services, (b) expand existing local programs

and services for which public moneys have been designated by the governing body in

a proposed local budget, or (c) initiate any new programs and services for which public

moneys have been designated by the governing body in a proposed local budget. (7) The cost of living. (8) The continuity and stability of employment including seniority rights and such

other factors not confined to the foregoing which are ordinarily or traditionally

considered in the determination of wages, hours, and conditions of employment through

collective negotiations and collective bargaining between the parties in the public

service and in private employment. (9) Statutory restrictions imposed on the employer. Among the items the arbitrator or panel of arbitrators shall assess when considering

this factor are the limitations imposed upon the employer by section 10 of P.L.2007, c. 62 ( C.40A:4-45.45 ). h. A mediator, factfinder, or arbitrator while functioning in a mediatory capacity

shall not be required to disclose any files, records, reports, documents, or other

papers classified as confidential received or prepared by him or to testify with regard

to mediation, conducted by him under this act on behalf of any party to any cause

pending in any type of proceeding under this act. Nothing contained herein shall exempt such an individual from disclosing information

relating to the commission of a crime. i. The Director of the Division of Local Government Services in the Department of

Community Affairs may notify the commission, through the Division of Public Employment

Relations, that a municipality deemed a “municipality in need of stabilization and

recovery” pursuant to section 4 of P.L.2016, c. 4 ( C.52:27BBBB-4 ) will not participate in any impasse procedures authorized by this section. Upon such notice, any pending impasse procedures authorized by this section shall

immediately cease, and any pending petition for arbitration shall be vacated. Nothing in this subsection shall be construed to limit the scope of any general

or specific powers of the Local Finance Board or the director set forth in P.L.2016,

c. 4 ( C.52:27BBBB-1 et al.). The provisions of this subsection shall no longer be applicable on and after the first

day of the sixth year next following the determination by the Commissioner of Community

Affairs that the municipality shall be deemed “a municipality in need of stabilization

and recovery” pursuant to section 4 of P.L.2016, c. 4 ( C.52:27BBBB-4 ); however, actions taken pursuant to this subsection prior to the effective date

of P.L.2021, c. 124 ( C.52:27BBBB-4 et al.) 1 shall be final and shall not be subject to reconsideration. j. The Local Finance Board may provide that any arbitration award, including but not

limited to an interest arbitration award, involving a municipality deemed a “municipality

in need of stabilization and recovery” pursuant to section 4 of P.L.2016, c. 4 ( C.52:27BBBB-4 ) shall be subject to the review and approval of the Director of the Division of Local

Government Services in the Department of Community Affairs, including those on a collective

negotiations agreement where the matter has been submitted to an arbitrator pursuant

to law, and no such award shall be binding without the approval of the director. Nothing in this subsection shall be construed to limit the scope of any general

or specific powers of the Local Finance Board or the director set forth in P.L.2016,

c. 4 ( C.52:27BBBB-4 ). The provisions of this subsection shall no longer be applicable on and after the first

day of the sixth year next following the determination by the Commissioner of Community

Affairs that the municipality shall be deemed “a municipality in need of stabilization

and recovery” pursuant to section 4 of P.L.2016, c. 4 ( C.52:27BBBB-4 ); however, actions taken pursuant to this subsection prior to the effective date

of P.L.2021, c. 124 ( C.52:27BBBB-4 et al.) shall be final and shall not be subject to reconsideration. 1

L.2021, c. 124, eff. June 24, 2021.