City of Pleasantville Overpaid Departing Official More than $165,000 in Sick Leave and Severance, Report Finds

TRENTON-The City of Pleasantville made wasteful sick leave and severance payments of more than $165,000 to its Business Administrator upon her resignation, the Office of the State Comptroller (OSC) said.

By law, sick leave payouts for certain senior employees are capped at $15,000 and are to be paid only when the employee officially retires from the pension system. In a letter to Pleasantville, released today, OSC noted that the former Business Administrator holds another state job and therefore should repay the sick leave payout of $83,986 she received.

OSC also found that the former Business Administrator received $81,737 due to Pleasantville's wasteful "severance" policy. State law requires employers to pay severance when workers lose their jobs in some circumstances like mass layoffs, but Pleasantville's policy called for giving up to six months' pay to employees who merely retire or resign after working for the town for as little as five years.

OSC found that this severance policy is "unnecessary, wasteful, and ripe for fraud and abuse" and recommended that Pleasantville eliminate this policy and any others, including longevity pay, to protect public funds. OSC also recommended that, when employment contracts are up for renewal, Pleasantville attempt to renegotiate any terms that include severance. OSC noted that in 2023, Pleasantville was forced to authorize $2.48 million in emergency appropriation to cover a large, unbudgeted amount of "severance" payouts. The City did not dispute OSC's findings and said it would submit a corrective action plan as required.

Additionally, OSC urged the Legislature to consider "statutory and regulatory remedies" to stop local governments from giving out wasteful severance and longevity payouts.

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To report government fraud, waste, mismanagement, or corruption, file a complaint with OSC or call 1-855-OSC-TIPS.