Part-Time Employment May Require Full-Time Health Benefits

Recently, an arbitrator with the New Jersey Public Employment Relations Commission (PERC) determined that a school district is obligated to provide health benefits to part-time teaching assistants, or paraprofessionals, under P.L.2020, c.4 (“Chapter 44”). This interpretation could have significant implications for school districts throughout New Jersey, particularly those that do not participate in the School Employees’ Health Benefit Program (SEHBP) and rely on paraprofessionals and other part-time staff.

When adopted, Chapter 44 significantly changed employee healthcare benefits to promote lower-cost insurance plans and reestablish cost-sharing requirements. It affected both districts participating in the School Employees’ Health Benefit Program (SEHBP) and non-participating districts, requiring non-participating districts to provide employees the equivalent of the New Jersey Educators Health Plan (NJEHP) or the Garden State Health Plan (GSHP).

In Hackettstown Board of Education (“Board”) and the Hackettstown Education Association (“Association”), the issue was “[w]hether the Board violated… [Chapter 44] … when it refused to offer part-time teacher assistants and their dependents the option to enroll in the New Jersey Educators Health Plan and the Garden State Health Plan at the Statutory cost-sharing amounts.” The Board was a non-participating district that had previously permitted paraprofessionals working more than 30 hours a week to participate in the district’s health benefits program at a 100% employee contribution, per a negotiated Side Bar Agreement with the Association in 2013. The hours of paraprofessionals were later changed by the Board to 29.5 hours, making them ineligible for any benefits under the terms of the collective bargaining agreement as part-time employees.

In their brief, the Association emphasized that Title 18A “contains no minimum hourly or weekly requirement to qualify for entitlement to healthcare coverage.” Although the Side Bar Agreement and subsequent collective bargaining agreements memorialized the Board’s healthcare offerings, the Association contended that Chapter 44 preempted the terms related to healthcare eligibility. The Board took the position that eligibility was a negotiable matter. Whereas Chapter 44 was aimed at reducing health insurance costs, the Board argued that the cost sharing plans were only applicable to those employees already eligible for benefits.

The arbitrator accepted the Association’s argument. As applied to non-participating districts, the arbitrator found that the language of N.J.S.A. 18A:16-13.2 covers all employees – defining “employee” as “the holder of any position or employment.” N.J.S.A. 18A:1-1. Given the broad applicability, the arbitrator found the statute to apply to part-time teaching assistants. It was further determined that no language in Chapter 44 provides exceptions for collective bargaining agreements, side bars, or past practices that are inconsistent with Chapter 44. Therefore, although limitations had been enacted through negotiations (such as employee contribution and minimum hours worked) between the Board and the Association, those inconsistent with Chapter 44 could not withstand.

Assuming the statues did apply in such a manner, the Board further argued that the financial implications should be assessed and negotiated prior to offering the plan. However, as addressed by PERC in Franklin Twp. Educ. Ass’n, et al. v. Bd. of Educ. of Franklin Twp., Somerset Cnty., 2023 PERC LEXIS 5, P.E.R.C. No. 2023-26, there is no discretion for Boards to withhold the NJEHP equivalent starting January 1, 2021. A board’s refusal to comply is inconsistent with the statutory requirements. As such, the arbitrator dismissed the Board’s concerns about financial impact before a plan’s implementation. Following the offer of the plan, if there is a net cost increase, the involved parties are only then obligated to negotiate measures to mitigate the financial impact on the Board, as established in Cmty. Charter Sch. of Paterson Educ. Ass’n v. Cmty. Charter Sch. of Paterson Bd. of Trustees, OAL Dkt. EDU 03968-21. The arbitrator relied on these prior decisions to conclude the Board failed to meet its obligation under the statute.

Ultimately, this decision underscores the significant implications of Chapter 44 for school districts, particularly those that do not participate in the School Employees’ Health Benefit Program. By affirming the eligibility of part-time teaching assistants for health benefits, the decision reinforces the broad applicability of N.J.S.A.18A:16-13.2 and clarifies that collective bargaining agreements cannot supersede the statutory mandates concerning healthcare coverage. This interpretation not only sets a precedent for compliance across non-participating districts but also highlights the necessity for school boards to navigate financial implications post-implementation, rather than as a barrier to offering benefits. As districts continue to grapple which the implementation of Chapter 44, districts must prioritize equitable healthcare access for all employees, ensuring that the intent of Chapter 44 to promote affordability and accessibility in health insurance is fully realized.