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October 27, 2017
2% Cap on Binding Interest Arbitration Awards
NJAC is continuing to urge members of the State Legislature to permanently extend the 2% cap on binding interest arbitration awards before the law sunsets on December 31st. County and municipal officials from across the State, and on both sides of the aisle, hail the cap as a critical tool for controlling personnel costs; negotiating reasonable successor contracts; and, avoiding arbitration awards granted by third party administrators who are not accountable to taxpayers.
For nearly a decade, the 2% cap on binding interest ar...
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