Commission Permits Arbitration Over Use of Compensatory Time

Township of Howell and PBA Local 228

In P.E.R.C. No. 2017-31, the Commission denied a request for a restraint of binding arbitration of a grievance alleging that the employer violated the parties’ contract when it unilaterally changed its policy to ban the use of compensatory time off it if resulted in the payment of overtime.  The Commission stated that the subject is negotiable as long as it would not prevent the employer from fulfilling its staffing requirements.  The Commission also appears to hold that if an employer is not obligated to grant compensatory time under the federal Fair Labor Standards Act (FLSA) because it would unduly disrupt the agency’s operations, then the subject would no longer be subject to arbitration.

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