A review by the Office of the State Comptroller (OSC) has revealed that a majority of school districts and over one in four municipalities in New Jersey have not complied with the requirement to submit current union contracts to the New Jersey Public Employment Relations Commission (PERC). This noncompliance, which has been increasing, undermines transparency according to the OSC report released today.
The New Jersey Employer-Employee Relations Act (EERA), enacted in 1968, mandates public employers to file their employee labor contracts with PERC. Since 2010, PERC has also been required to publish these contracts on its website.
The OSC's review indicates that compliance has significantly decreased since 2010. Data from December 2023 shows that 64 percent of 586 school districts and 27 percent of 488 municipalities had not provided copies of current union contracts to PERC by the end of 2021. In contrast, in 2010, compliance was at 97 percent for municipalities and over 80 percent for school districts, as noted in a letter sent by OSC to PERC’s Chair.
“The posting of union contracts on PERC’s website is an important tool for New Jersey residents, unions, and the government,” Acting State Comptroller Kevin D. Walsh stated. “By law, taxpayers are supposed to have immediate access to this information. PERC’s website provides a free way for local governments to meet their transparency obligations. It is disappointing and surprising that more of them are not complying with the law.”
Further findings from OSC indicate that since at least 2010, twelve local government entities and sixty-nine school districts have not submitted any contracts to PERC. The review suggests that local governments have "limited awareness" of the filing requirements under the law. Additionally, it was found that PERC has not issued any notices to local governments but only posted a document on its website.
The OSC's review covered the period from 2010 to 2023 but based its findings on data up until the end of 2021 to emphasize those entities out of compliance for at least two years. According to OSC, if they had used data through the end of 2023, non-compliance rates would be even higher.
Among its recommendations, OSC suggested that PERC should consider using its rulemaking authority to establish an enforcement mechanism aimed at encouraging compliance.
