New Jersey Lawyers BlogNew Jersey Appeals Court Rejects Argument that Public Employee’s Subsequent Employment Relieves Employer from Having to Pay Amounts in Separation Agreement
The New Jersey Appellate Division examined a town’s termination of payments to its former employee under a separation agreement when the employee became employed by another town.
Background
Alberto Cabrera was the municipal clerk of the Town of Guttenberg, New Jersey. As so often happens, the parties wished to terminate their relationship. They entered into a Separation Agreement which provided that Cabrera would stop performing his duties and go on paid leave beginning on August 18, 2022, and the leave would terminate with his retirement on March 31, 2023. He would be on the payroll and paid his regular salary by the Town through that day. He would continue to get medical benefits through March 31, 2023. The Town would also pay him his accrued but unused vacation, sick, compensatory and personal days for 2022 and 2023. Cabrera agreed to submit a letter requesting this paid leave of absence, which he did the same day. The Town’s Mayor and Council voted to approve the agreement. Cabrera inquired about amending the agreement once, but it was never changed in any way.