State v. International Federation of Professional & Engineers, Local 195

The opinion of the Court was delivered by

ZAZZALI, J.

In this matter an arbitrator awarded back pay to public-sector employees who were improperly denied overtime in violation of a collective negotiations agreement. The Appellate Division held that although the back pay award was explicitly authorized by the agreement, the award nevertheless violated the “no work, no pay” rule, a common law rule established in 1859, which prohibits payment to individuals for services they did not perform.

This appeal poses the “provocative question!] • • • whether the ‘no work, no pay’ rule retains its…