Cleary Giacobbe Alfieri Jacobs Prevails in PERC ARBITRATION INVOLVING EMPLOYEE HEALTH CONTRIBUTIONS

On July 27, 2026, the PERC appointed Arbitrator ruled in favor of the Borough of Dumont and denied the PBA’s grievance seeking to alter the plain language of the parties’ collective negotiations agreement (“CNA”) and require the Borough to pay for all increases to healthcare premiums.

The CNA provides that the Borough is responsible for increases to employee health benefit premiums, except that PBA employees are responsible for contributing 35% toward their total health benefits, with the operative word being “total,” which would include any yearly increases to health benefit premiums.

This contractual provision remained virtually unchanged and was found in agreements dating back to 2017 with PBA employees paying their negotiated share of the total cost of health insurance, inclusive of annual increases to premiums. In 2025, when the State Health Benefits Plan (“SHBP”) implemented a large premium increase, the PBA sought to avoid the terms of the contract.

The Arbitrator agreed with the Borough that the contractual language was plain and unambiguous and that it was the PBA’s dissatisfaction with the 2025 SHBP premium increases that gave rise to the grievance and not any misunderstanding of the contractual language. The Arbitrator further agreed with the Borough that the terms of the CNA must be read in its entirety and specifically ruled that one section cannot be separated from the remainder of the Agreement.

Accordingly, the Arbitrator ruled that the Borough did not violate the CNA when they increased premiums for health insurance.

The Borough of Dumont was represented by Deena B. Rosendahl, Esq., of the firm.