Sep 30, 2020

Governor Murphy Signs Bill S-2303 Regarding Subcontracting Agreements

By Paul H. Green, Esq. & Christopher J. Sedefian, Esq.

Governor Murphy recently signed Bill S-2303 into law. Under the new law, all actions pertaining to or resulting from a school district’s decision to subcontract any work or services provided by its employees, including whether or not severance pay is provided, are mandatory subjects of negotiations. Additionally, districts are prohibited from entering into subcontracting agreements which affect the employment of any employees in a collective negotiations unit during the term of the collective negotiations agreement.


Moreover, districts are not permitted to enter into subcontracting agreements for a period following the term of the current contract unless the district: 1) provides written notice to the majority representative of employees in each unit that might be affected and to the New Jersey Public Employment Relations Commission at least 90 days prior to requesting bids or soliciting proposals; and 2) has offered those majority representatives the opportunity to meet with the district to discuss the decision to subcontract, and the opportunity to engage in negotiations over the impact of such a decision.


Employees who are replaced or displaced due to a subcontracting agreement retain all of their previously acquired seniority and will have recall rights when the subcontracting terminates.


Any decision to subcontract services should be carefully reviewed with legal counsel, as districts that violate any provision of this new law are likely to face unfair practice charges from affected majority representative organizations. For more information on this Legal Alert or related issues, please contact the education law attorneys at Schenck Price.


DISCLAIMER: This Alert is designed to keep you aware of recent developments in the law. It is not intended to be legal advice, which can only be given after the attorney understands the facts of a particular matter and the goals of the client.