December 7, 2023


The Number One Source For Business

Paterson NJ police and firefighters lose health insurance ruling

PATERSON — A state appellate court on Monday gave Mayor Andre Sayegh’s administration a legal victory in a multimillion-dollar battle over the medical benefits the city provides its police officers and firefighters.

The decision will affect the health care for more than 1,000 municipal public safety workers and retirees.

At issue was the Sayegh administration’s 2018 decision to switch all municipal workers from a costly self-insurance program for employee health coverage to the state benefits plan, a move city officials said saved about $20 million per year.

Monday’s appeals court decision negated previous rulings by a state arbitrator and lower courts. The lower courts had said the city had to resume the self-insurance system because Paterson violated its police and fire employment contracts by making the change without union consent. The unions had argued that state plan was not as good as the benefits called for in their contract.