Sweeping labor agreement with CSEA Local 880 reshapes compensation and benefits for hundreds of municipal workers through 2030
December 24, 2025 | Town of Hempstead
The Town of Hempstead Town Board approved a comprehensive new five-year collective bargaining agreement with the Civil Service Employees Association (CSEA) Local 880 on Tuesday, locking in guaranteed wage increases, dramatically improved benefits, and new protections for part-time workers through the end of the decade.
The agreement, ratified by CSEA membership on December 11, 2025, replaces the expiring 2022-2025 contract and represents one of the most significant labor deals in recent town history.
Under the new contract, all full-time town employees—and ungraded full-time workers—will receive annual wage increases on a back-loaded schedule that delivers larger gains in the final two years:
| Effective Date | Wage Increase |
|---|---|
| January 1, 2026 | 2% |
| January 1, 2027 | 2% |
| January 1, 2028 | 2% |
| January 1, 2029 | 4% |
| January 1, 2030 | 4% |
Over the contract's five-year term, employees will see cumulative wage growth of approximately 14%—a significant gain that outpaces recent inflation trends while providing budget predictability for town financial planning.
Health Insurance: Free Coverage After 15 Years
Perhaps the most consequential change for long-tenured employees takes effect on January 1, 2029: workers with 15 or more years of full-time town employment will receive health insurance coverage with no employee contribution required.
The provision rewards loyalty and longevity, effectively providing a substantial raise for veteran employees who have dedicated their careers to town service. For workers currently paying several hundred dollars per month toward family health coverage, the savings could exceed $5,000 annually.
The agreement also eliminates previous restrictions that prevented spouses of town employees from qualifying for family-plan rates when calculating health insurance buybacks—a technical but meaningful change that expands compensation options for dual-income households.
Dental Benefits More Than Triple for Orthodontics
The new contract delivers a dramatic overhaul of dental coverage that will be felt immediately by employees and their families:
Orthodontics: Coverage increases from $1,200 to $4,240—more than tripling the lifetime benefit. For families facing braces costs that routinely exceed $5,000, this change substantially reduces out-of-pocket expenses.
Annual Maximum: The yearly cap rises from $2,400 to $3,000, providing additional headroom for major dental work.
Implants: Up to $1,250 of the annual maximum may now be applied to dental implants or related needs—a category previously excluded or severely limited under many municipal plans.
Preventive Care: The plan now covers three cleanings per year, up from the industry-standard two, encouraging better preventive care and potentially reducing costly interventions down the road.
Out-of-Network Freedom: Employees can now use out-of-network dental providers and receive 100% reimbursement at in-network rates—a flexibility that allows workers to maintain relationships with family dentists who may not participate in the plan's network.
Vacation Overhaul Rewards Longevity
The agreement restructures the bonus vacation leave schedule to provide more generous time off, particularly for mid-career and senior employees:
| Years of Service | Bonus Days | Total Vacation |
|---|---|---|
| 2 years | 1 day | 14 days |
| 3-4 years | 2 days | 15 days |
| 5 years | 3 days | 16 days |
| 6-7 years | 4 days | 17 days |
| 8 years | 5 days | 18 days |
| 9 years | 6 days | 19 days |
| 10 years | 7 days | 20 days |
| 11 years | 8 days | 21 days |
| 12 years | 9 days | 22 days |
| 13 years | 10 days | 23 days |
| 14 years | 11 days | 24 days |
| 15+ years | 13 days | 26 days |
Additionally, the cap on accumulated unused vacation leave payouts has been doubled—from 50 days to 100 days. For employees who have banked significant leave over their careers, this change could add tens of thousands of dollars to their separation or retirement payouts.
New Benefit: Six Weeks Paid Pregnancy Leave
The contract establishes an entirely new category of leave: six weeks of paid pregnancy disability leave for full-time employees.
The benefit provides job-protected leave for employees unable to work due to pregnancy, childbirth, recovery, or related medical conditions. Eligibility requires submission of a doctor's note.
The provision brings the Town in line with private-sector trends toward more generous parental leave policies and addresses a gap that has historically forced employees to cobble together sick time, vacation, and unpaid leave to cover pregnancy-related absences.
Employer-Funded Legal Aid Coming
In another first, the Town has agreed to contribute to an employer-funded legal aid plan for employees. While specific plan details remain subject to negotiation and mutual approval by both the Town and CSEA, the commitment represents a new benefit category that could help workers access legal services for personal matters at reduced or no cost.
Major Restructuring of Part-Time Worker Rules
The agreement fundamentally reshapes how the Town employs and manages part-time workers—changes that affect both current part-timers and the Town's future hiring flexibility.
Hours and Approval:
- Part-time employees may work up to 20 hours per week with no restrictions on how many the Town employs
- Working beyond 20 hours requires written approval from both the Town Attorney and CSEA
- CSEA has agreed not to unreasonably deny requests for employees to exceed the 20-hour threshold
Path to Full-Time Employment:
Once approved to work more than 20 hours, an employee's "clock" begins. After three years at that level, the Town must offer the employee a full-time position within six months—unless the employee falls under specific exemptions.
Exemptions from Automatic Full-Time Offers:
Employees who sign an exemption acknowledgment are not entitled to full-time offers if they are:
- Pensioners already collecting retirement benefits
- Students with no intention of full-time employment
- Per-diem or special-class part-time employees who do not want full-time work
New Disciplinary Protections:
After 12 months of employment, part-time workers gain access to a three-step disciplinary review process:
- Appeal to Department Head
- Meeting between CSEA Officer and Department Liaison
- Meeting between CSEA Officer and Town Attorney
Notably, the process does not include binding arbitration until 30 months from the employee's transition date, when full CBA disciplinary provisions apply.
Break in Service: The definition of a break in service has been tightened from 12 months to 6 months for non-full-time employees.What Disappears: Uniform Allowance Eliminated
Not all changes favor employees. Effective January 1, 2026, the uniform maintenance allowance is eliminated from the contract. Employees who previously received this benefit will no longer see it in their compensation.
Implementation Timeline
The new agreement takes effect January 1, 2026. Key dates include:
- January 1, 2026: First 2% wage increase; uniform allowance ends; new part-time rules begin
- Early 2026: CSEA and Town Attorney to meet and review all part-time employee files before new disciplinary protections take effect
- January 1, 2029: Free health insurance for 15+ year employees takes effect; 4% wage increase
- December 31, 2030: Contract expires
Town Supervisor John R. Ferretti, Jr. is authorized to execute the memorandum of agreement and any documents necessary to implement the contract.
Medical, dental, and retirement benefits under the agreement are also extended to elected officials and members of the Board of Appeals.
Full benefits are extended to town employees, as well as those designated by the Town as negotiating team members and management advisory committee members.