Prohibits terminal leave compensation for local government employees.

This bill prohibits local government employees in New Jersey (excluding school districts) from receiving terminal leave compensation for accrued administrative leave, vacation, sick leave, or longevity benefits upon retirement. It also bans the use of six or more consecutive sick days within 12 months of retirement eligibility without written medical verification from a physician. Employers must verify medical necessity, may require a physician examination, and can deduct improperly used sick days from retirement compensation calculations. The law applies to counties, municipalities, fire districts, and similar entities that have adopted New Jersey’s civil service rules.