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EMPLOYER CLIENT ALERT: 5/14/2009 Public Employment Client E-AlertThe New Jersey Supreme Court, in a decision decided on May 11, 2009, required a school district to return a formerly disabled teacher to the next available opening in the position that she held at the time of her disability retirement 20 years earlier, since she met the standards set by the State Board of Education for her position. In Charlotte Klumb v. Board of Education of Manalapan-Englishtown, the Court affirmed the decision of the Appellate Division, but remanded to the Commissioner of the Board of Education regarding determination of back pay. The main issue in this case was the interpretation of a section of the Teacher’s Pension and Annuity Fund Law, N.J.S.A. 18A:66-40(a), which the Court determined allows a worker who has recovered from a disability to be assured gainful employment, assuming she remains qualified. While the school district was not required to displace another employee or create a new position for the plaintiff, the district was required to reinstate her to the next opening in the position from which she was retired, and if the district failed to do so it was required to make her whole for the losses she sustained. The Court considered other pension statutes in New Jersey which also call for reinstatement of public employees, upon determination that the employee is no longer disabled and able to be reemployed. The Court gave great weight to administrative agency interpretations. The Court cited to the Public Employee’s Retirement System Act, N.J.S.A. 43:15A-44(a), which has been interpreted to require that when an employee leaves his position as a result of disability and is later rehabilitated, the former employer must rehire him. The statute governing matters within the Police and Firemen’s Retirement System (“PFRS”) is similar, N.J.S.A.43:16-8(2), in that PFRS also construes the language to mandate reinstatement. Finally, the Merit System Board has also reached the same conclusions regarding reinstatement. The lesson to be learned by this case is that a formerly disabled
public employee generally must be rehired as long as they meet the
standards of the position. Although no employees are required to be
terminated, the formerly disabled employee should be provided an open
position. If the public employer fails to properly rehire the formerly
disabled employee, they will likely be ordered to pay back pay for the
period after which the former employee was eligible and denied an open
position. If you have any questions about any of the issues raised in this
Employer Alert, or any employment and labor issue or concern, please
call Thomas Ryan, Esq. or Linda Day, Esq. of Laddey, Clark & Ryan’s
Employment and Labor Practice Group at (973) 729-1880. If you do not
wish to receive updates concerning developments in the law which could
affect your business in the future, please indicate your preference
below, and we will take you off our e-mail list. The Employment and Labor Practice Group
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