18A:7-8.1 Standards for review, approval of certain employment contracts.

3. The review and approval of the employment contracts of superintendents of schools, assistant superintendents, and school business administrators conducted by the executive county superintendent pursuant to subsection j. of N.J.S.18A:7-8 shall be consistent with the following standards:

a. Contracts for each class of administrative position shall be comparable with the salary, benefits, and other emoluments contained in the contracts of similarly credentialed and experienced administrators in other school districts in the region with similar enrollment, academic achievement levels and challenges, and grade span.

b. No contract shall include provisions inconsistent with the travel requirements established pursuant to section 15 of P.L.2007, c.53 (C.18A:11-12) and applicable regulations including, but not limited to, the provisions for mileage reimbursement and reimbursement for meals and lodging in New Jersey. Any contractual provision that is inconsistent with law shall be superseded by the law.

c. No contract shall include provisions for the reimbursement or payment of employee contributions that are either required by law or by a contract in effect in the school district with other teaching staff members, such as payment of the employee's State or federal taxes, or of the employee's contributions to FICA, Medicare, State pensions and annuities, life insurance, disability insurance, if offered, and health benefit costs.

d. No contract shall contain a payment as a condition of separation from service that is deemed by the executive county superintendent to be prohibited or excessive in nature. The payment shall not exceed the lesser of the calculation of three months' pay for every year remaining on the contract with proration for partial years, not to exceed 12 months, or the remaining salary amount due under the contract.

e. No contract shall include benefits that supplement or duplicate benefits that are otherwise available to the employee by operation of law, an existing group plan, or other means, such as an annuity or life insurance plan that supplements or duplicates a plan already made available to the employee. Notwithstanding the provisions of this subsection to the contrary, a contract may contain an annuity where benefits are already contained in the existing contract between that employee and the school district.

f. Contractual provisions regarding accumulation of sick leave and supplemental compensation for accumulated sick leave shall be consistent with the provisions of section 44 of P.L.2007, c.92 (C.18A:30-3.5) and section 3 of P.L.2010, c.3 (C.18A:30-3.6). Supplemental payment for accumulated sick leave shall be payable only at the time of retirement and shall not be paid to the individual's estate or beneficiaries in the event of the individual's death prior to retirement. Pursuant to N.J.S.18A:30-3.2, a new district board of education contract may include credit of unused sick leave days in accordance with the new district board of education's policy on sick leave credit for all employees.

g. Contractual provisions regarding accumulation of unused vacation leave and supplemental compensation for accumulated unused vacation leave shall be consistent with the provisions of section 46 of P.L.2007, c.92 (C.18A:30-9). Contractual provisions for payments of accumulated vacation leave prior to separation may be included but only for leave accumulated prior to June 8, 2007, and remaining unused at the time of payment. Supplemental payments for unused vacation leave accrued consistent with the provisions of section 46 of P.L.2007, c.92 (C.18A:30-9) after June 8, 2007 and unused vacation leave accumulated prior to June 8, 2007, that has not been paid, shall be payable at the time of separation and may be paid to the individual's estate or beneficiaries in the event of the individual's death prior to separation.

h. Contractual provisions that include a calculation of per diem for 12-month employees shall be based on a 260-day work year.

i. No provision for a merit bonus shall be made except where payment is contingent upon achievement of quantitative merit criterion or qualitative merit criterion:

(1) A contract may include no more than three quantitative merit criteria and two qualitative merit criteria per contract year.

(2) The executive county superintendent shall approve or disapprove the selection of quantitative merit and qualitative merit criteria and the data that forms the basis of measuring the achievement of quantitative merit and qualitative merit criteria.

(3) A contract may provide for merit bonuses in an amount not exceeding 3.33 percent of annual salary for each quantitative merit criterion achieved and 2.5 percent of annual salary for each qualitative merit criterion achieved. Any merit bonus shall be considered "extra compensation" for purposes of applicable regulations and shall not be cumulative.

(4) The district board of education shall submit to the executive county superintendent a resolution certifying that a quantitative merit criterion or a qualitative merit criterion has been satisfied and shall await confirmation of the satisfaction of that criterion from the executive county superintendent prior to payment of any merit bonus.

j. No provision for a bonus shall be made except where payment is contingent upon achievement of measurable specific performance objectives expressly contained in a contract approved pursuant to this subsection, where compensation is deemed reasonable relative to the established performance objectives and achievement of the performance objectives has been documented to the satisfaction of the district board of education.

k. No provision for payment at the time of separation or retirement shall be made for work not performed except as otherwise authorized pursuant to this section.

l. No contract shall include a provision for a monthly allowance except for a reasonable car allowance. A reasonable car allowance shall not exceed the monthly cost of the average monthly miles traveled for business purposes multiplied by the allowable mileage reimbursement pursuant to applicable law and regulation and the Office of Management and Budget circulars. If an allowance is included, the employee shall not be reimbursed for business travel mileage or assigned permanently a car for official school district business. Any provision of a car for official school district business shall conform with applicable regulations and shall be supported by detailed justification. No contract shall include a provision of a dedicated driver or chauffeur.

m. All superintendent contracts shall include the provision required pursuant to section 7 of P.L.2007, c.53 (C.18A:17-15.1), which states that in the event the superintendent's certificate is revoked, the contract is null and void.

n. No contract shall include a provision for additional compensation upon the acquisition of a graduate degree unless the graduate degree is conferred by a regionally accredited college or university as defined in applicable regulations. No contract shall include a provision for assistance, tuition reimbursement, or additional compensation for graduate school coursework unless the coursework culminates in the acquisition of a graduate degree conferred by a regionally accredited college or university as defined in applicable regulations.

L.2019, c.169, s.3.