Commission Restrains Arbitration Over Employer’s Failure to Immediately Reinstate Health Insurance For Employee Rehired Following Layoff

Rutgers, the State University of New Jersey and Health Professionals and Allied Employees AFT/AFL-CIO, Local 5094

In P.E.R.C. No. 2018-23, the Commission restrained binding arbitration of a grievance contesting Rutgers’ failure to immediately reinstate an employee’s health insurance benefits when she was rehired following a layoff.  The Commission found that arbitration was preempted by the State Health Benefits Program Act and its implementing regulations which require two months of continuous full-time service in order to be eligible for coverage, and that the employee was ineligible for immediate coverage due to her break in service.

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