NJ: NJ Transit overtime costs rise to $237.4 million in 2024, sparking plan for cuts

In 2023, NJ Transit spent $216.3 million in overtime pay, a number that increased by 9% to $237.4 million in 2024, officials said.

But NJ Transit CEO Kris Kolluri said he wants to strategically cut overtime by 4% this year, which could save $9.48 million and has been suggested by member of the state legislature.

“It is something I’m going to focus on. It is not something I’m just telling people to do it,” he said. “I will sit there with them, look at the books, see where the overtime is and I will work with them to reduce it.”

NJ Transit’s proposed $3.2 billion fiscal year 2026 operating budget calls for $58 million in cost savings, which includes the proposed overtime reduction.

NJ Transit’s overtime is significantly less than New York’s MTA, which has faced scrutiny for employees earning hundreds of thousands of dollars in overtime pay.

While NJ Transit doesn’t approach those levels, salary records in 2024 showed there were 88 employees who made more than $100,000 in overtime last year. Of NJ Transit’s 13,936 full-time and part-time employees on the 2024 payroll, 10,584 employees earned overtime, ranging from a low of $5.93 to a high of $196,676.

By comparison, 724 MTA employees last year got more than $100,000 each in overtime in 2023, according to data from the Empire Center, a New York government watchdog group.

Among NJ Transit’s top overtime earners in 2024 were:

• A carman with 17 years at NJ Transit who earned $196,677 in overtime, the highest in 2024.
• A tech with 21 years at NJ Transit who earned $ 180,121 in OT last year.
• A structures supervisor with 15 years at NJ Transit who earned $172,029 in OT last year.
• A substation supervisor with 21 years at NJ Transit who earned $159,970 in OT in 2024.
• Another technician with 20 years at NJ Transit who earned $158,688 in OT
• A foreman with eight years at NJ Transit who earned $155,263 in OT.
• A yardmaster with 25 years at NJ Transit who earned $153,490 in OT.

“The biggest overtime we have is in rail, bus operations and police,” Kolluri said. “We have had conversations with all three heads to make sure we are very precise in where we reduce overtime.”

The challenge is mustering the required staff for special events, concerts or extraordinary weather events, the CEO said.

NJ Transit experienced a challenging summer in 2024 where high temperatures affected trains and infrastructure, resulting in delays and cancelled trains. Rail maintenance crews worked around the clock to repair and restore train service.

“That’s when overtime kicks in,” Kolluri said. “It’s not like we have 500 people waiting to be called in. We have to use the existing resources we have.”

One way for the agency to cut overtime, especially when it is more money than an employee’s base salary, is to hire more workers for that job, said Will Brucher, a labor expert in the Rutgers School of Management and Labor Relations.

“The problem isn’t that workers are getting overtime. They are doing the work that needs to be done. The problem is not having enough workers,” Brucher said. “The best way for NJ Transit management to reduce overtime is to hire more full-time workers.”

That will create skilled, good-paying jobs and help people who rely on public transportation, he said.

“Otherwise, management will have to continue to rely on overtime to meet its maintenance and service obligations,” Brucher said.

Hiring is on the table in specific areas, Kolluri said.

“We are constantly hiring in the three areas. The police just authorized a new academy (class),” he said. “We are in the process of recruiting more bus drivers and mechanics.”

Driver recruitment is continual, since NJ Transit is competing with school districts and package delivery companies like UPS, Amazon and Fed Ex for the same pool of drivers with commercial driver’s licenses.

A lack of bus drivers can result in canceled bus runs. In January, 141 customer complaints about no-show buses were “primarily related to operator availability,” officials said. NJ Transit continues to offer a $6,000 hiring bonus for drivers with a CDL and a $3,000 hiring bonus for people with a CDL permit.

However, recruiting mechanics is the most challenging due to “pay levels and competition from the private sector,” he said.

The third category of new hires the agency is focused on is rail mechanics and locomotive engineers.

NJ Transit officials said the agency has overtime control strategies in place, including oversight and identifying the reasons for overtime.

“All overtime hours are reviewed, approved and tracked in the payroll system to identify the reason or project associated with the overtime cost, and usage is regularly reviewed and reconciled to identify opportunities to minimize or offset overtime,” said John Chartier, a spokesperson for NJ Transit.

Overtime control strategies include a strict managerial oversight and review and sign-off for all overtime hours, he said.

Overtime also is tracked by coding it in payroll records to identify the reason, project or reimbursable source for an overtime event, such as severe winter weather, special events detours and completion of maintenance work, Chartier said.

The agency also conducts monthly analysis between the budget department and operating units about overtime performance, he said. That includes identifying remedial actions to minimize or offset negative overtime performance.

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