A review by the Office of the State Comptroller (OSC) has revealed that a significant number of school districts and municipalities in New Jersey have failed to comply with legal requirements to submit their union contracts to the New Jersey Public Employment Relations Commission (PERC).
The lack of compliance undermines transparency and accountability, according to the findings detailed in a report released today.
The New Jersey Employer-Employee Relations Act (EERA), enacted in 1968, requires public employers to file employee labor contracts with PERC. Additionally, since 2010, PERC has been obligated to publish these contracts on its website to ensure public accessibility.
OSC’s review shows that since 2010, compliance rates have sharply declined.
As of December 2023, the data indicated that 64% of the 586 school districts and 27% of the 488 municipalities in New Jersey had not submitted their current union contracts to PERC by the end of 2021. These figures contrast with 2010, when 97% of municipalities and over 80% of school districts were in compliance.
“The posting of union contracts on PERC’s website is an important tool for New Jersey residents, unions, and the government,” said Acting State Comptroller Kevin D. Walsh. “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.”
OSC’s review also revealed that 12 local government entities and 69 school districts had not submitted any union contracts to PERC since at least 2010.
The report suggests that local governments may have “limited awareness” of the legal filing requirements.
PERC has not issued formal reminders to local governments about their obligations, aside from posting a document on its website.
The OSC’s review covered the period from 2010 to 2023, with a particular focus on data through the end of 2021 to underscore persistent non-compliance among entities that have failed to meet the requirements for at least two years. Had the review extended to 2023, the rate of non-compliance would have been even higher.
In light of these findings, OSC has recommended that PERC explore using its rulemaking authority to establish an enforcement mechanism to encourage greater compliance among public entities.
For more details, the full report is available online.
To report government fraud, waste, mismanagement, or corruption, residents may file a complaint with the agency or call 1-855-OSC-TIPS.
The Office of the State Comptroller (OSC) is an independent state agency that works to improve efficiency, transparency, and accountability in government. The agency conducts audits and investigations, reviews government contracts, and works to prevent fraud, waste, and abuse in New Jersey’s Medicaid program.