The New Jersey Superior Court, Appellate Division, ruled that the City of Paterson is required to cover the cost of dental insurance for its firefighters, reversing a lower court decision.
This ruling follows a lawsuit filed by the Paterson Firefighters Association (PFA), which argued that a preservation clause in its collective bargaining agreement (CBA) protects members from changes that would shift dental insurance costs to them.
The appellate court sided with the PFA, overturning a 2025 Passaic County Superior Court ruling that had determined the city was not responsible for the costs.
The court cited the CBA’s preservation clause, which ensures that all rights, privileges, and benefits not explicitly modified by the agreement remain intact for employees.
Frank Lozada, President of the PFA, expressed frustration over the prolonged dispute, stating, “These benefits were already negotiated, yet the city keeps pushing back. We’ve won six arbitrations and more than a dozen grievances without losing once. Now we’re just waiting for the city to honor what’s rightfully ours.”
The ruling also referred to a 2013 New Jersey Supreme Court case, Borough of East Rutherford v. East Rutherford PBA Local 275, which upheld a similar preservation clause. The court concluded that the arbitrator’s decision to maintain the city’s responsibility for dental insurance costs was supported by the contract language.
Frank Petrelli, President of the Paterson Fire Officers Association, echoed Lozada’s sentiment, saying the city’s litigation was unnecessary and costly. “The contract language was crystal clear, and this issue could have been resolved long before it reached arbitration.”
The PFA’s CBA, covering firefighters from 2010 to 2019, mandated that the city pay the full cost of dental insurance for employees and their dependents.
While the CBA expired in 2019, a memorandum of agreement (MOA) signed in 2022 extended the contract terms, including health, dental, and prescription coverage provisions. However, the MOA did not explicitly clarify who should bear the cost of dental insurance.
The dispute intensified after the city informed firefighters of a new dental provider starting January 1, 2024, and began deducting payroll contributions for coverage. In response, the PFA filed a grievance, asserting the city remained responsible for dental costs under the MOA’s preservation clause.
An arbitrator ruled in favor of the PFA in December 2024, and while the city appealed, the trial court initially sided with the city. However, the appellate court disagreed, ruling that the city failed to provide evidence of any prior agreements to shift dental costs. The court’s decision effectively upheld the arbitrator’s interpretation of the agreement.
The ruling has been hailed as a victory for Paterson’s firefighters, with Eddie Donnelly, President of the NJFMBA, calling it “unconscionable” that firefighters had to fight for earned benefits. “This union will not sit by idly while the Sayegh Administration continues to litigate and relitigate, costing our members and taxpayers significantly.”