NJ Appeals Court Says State Can Cut Atlantic City Union Benefits

A New Jersey law to rescue Atlantic City’s finances permitted a state takeover to slash already-bargained-for union benefits, a state appeals court ruled Monday.

The New Jersey Superior Court Appellate Division rejected unionized police officers’ arguments that the city had to provide them bargained-for terminal leave, which allows them to retire earlier and still be compensated using banked sick time. The state didn’t violate contract and property right protections when officials cut into this compensation in a collective bargaining agreement that was expired but still effective, the court said.

New Jersey’s Municipal Stabilization & Recovery Act is “clearly an exercise ...