TRENTON – The City of Pleasantville obtained a court order requiring its former Business Administrator to return more than $83,000 in accumulated sick leave paid in violation of New Jersey law, the Office of the State Comptroller (OSC) announced today.

The legal action, filed to advance a Corrective Action Plan (CAP) required by OSC, marks a significant step toward recovering public funds that OSC first identified as improperly paid in a November 2025 public letter.

A Memorandum of Decision issued by the Atlantic County Superior Court, Chancery Division, noted that the City “relies upon the directive from the OSC, received November 7, 2025, which deems the payment unlawful…and mandates corrective action.” The court further found that “OSC’s finding, Plaintiff’s internal review, and city records collectively establish a strong likelihood of success on Plaintiff’s claim for rescission and recovery of the funds.”

“This outcome demonstrates the importance of corrective action in protecting taxpayer dollars,” said Acting State Comptroller Shirley Emehelu. “Pleasantville followed OSC’s recommendations, worked through the required process, and is now positioned to recover funds that should have never been paid out.”

In November 2025, OSC issued a public letter detailing Pleasantville’s improper payment of $165,724 to its former Business Administrator upon her resignation. Of that amount, $83,987 was paid for accumulated sick leave that she was not legally entitled to receive. The remaining $81,737 was paid under the City's severance policy, which OSC found wasteful but not illegal.

Under New Jersey law, sick leave payouts for certain senior employees are capped at $15,000 and may only be paid when the employee formally retires from the pension system. The former Business Administrator, who was appointed to her role in 2011, resigned from the City in 2024, but did not retire from the state pension system. Instead, she took another state job and continued contributing to the pension fund, making her ineligible for the sick leave payout under the law.

In response to OSC’s findings, the City submitted a CAP outlining steps to recoup the improperly paid funds.

In addition to its recommendations to the City, OSC urged the Legislature to consider statewide statutory remedies to curb wasteful severance and longevity policies.

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