JACKSON TOWNSHIP, NJ – Jackson Township has quietly agreed to pay Police Chief Matthew D. Kunz a $2 million settlement to resolve a whistleblower and discrimination lawsuit, ending a bitter legal battle that has loomed over township government for more than a year and igniting new political fallout just months before the next mayoral election.
According to a 13-page settlement agreement filed in Ocean County Superior Court, Kunz will retire on February 1, 2026, after receiving a series of structured payments from the township totaling two million dollars. The deal, signed on January 12, 2026, includes $247,513.94 in back pay, $350,000 in attorney’s fees, and a $1.4 million payout tied to claims under New Jersey’s Conscientious Employee Protection Act (CEPA) and Law Against Discrimination.
Large payout follows months of controversy
The settlement closes the case Kunz filed against the township, Mayor Jennifer Kuhn, and Public Safety Director Joseph Candido, which alleged retaliation, interference, and violations of workplace protections during his tenure as chief. The agreement does not include an admission of wrongdoing but requires the township to assist Kunz with his pension filing and to calculate his retirement benefits based on a corrected salary of $289,056.
Court documents show that the township’s failure to issue contractual salary increases between 2019 and 2026 triggered the back pay claim. However, the bulk of the $2 million deal stems from the township’s creation of the controversial Director of Law and Public Safety position—a move that Kunz claimed undermined his authority as chief and violated his employment protections.
Political opponents blame mayor, council
While Mayor Jennifer Kuhn and Council President Mordechai Burnstein blame former Mayor Michael Reina, Kuhn’s main opponent and a leading candidate in the 2026 mayoral election said their claims were nothing but lies and misdirection.
Eli Shem Tov, a candidate running against Mayor Kuhn, blasted township leaders for what he called a preventable and costly mistake.
This was a $247,000 back pay issue that ballooned into a $2 million loss because of decisions made by this administration, Shem Tov said at last week’s township council meeting.
The crux of Kunz’s complaint centered around the mayor and council’s push—led by Mayor Kuhn and Councilman Burnstein—to create the Director of Law and Public Safety position. That decision directly contributed to this lawsuit and the massive payout that taxpayers are now footing.”
Councilman Chris Pollak echoed Shem Tov’s sentiments blaming poor leadership and bad decisions on behalf of Kuhn and Burnstein for the significant payout.
Settlement details
Under the agreement, Kunz will receive installment payments over three years:
- $475,970 by January 30, 2026
- $321,336.72 by January 30, 2027
- $321,336.72 by January 30, 2028
- $321,336.72 by January 30, 2029
The deal also requires both sides to refrain from making disparaging public statements, while allowing the township to issue a proclamation recognizing Kunz’s decades of service.
Key takeaways
• Chief Matthew Kunz to retire February 1 after $2 million settlement.
• The agreement includes $1.4 million in whistleblower-related damages.
• Political candidate Eli Shem Tov blames Mayor Kuhn and Councilman Burnstein for creating the controversial Public Safety Director role that fueled the lawsuit.
Jackson Township officials have not commented publicly on the settlement. The agreement represents one of the largest legal payouts in the township’s recent history.
SETTLEMENT AGREEMENT AND GENERAL RELEASE
- The parties to this Negotiated Settlement Agreement and General Release (sometimes referred to as the “Agreement”) are Matthew D. Kunz (“Plaintiff”) and Jackson Township, former Mayor Michael Reina, and Director of Public Safety Joseph Candido (collectively “Defendants”).
- The Agreement resolves all claims, known or unknown, sustained or allegedly sustained, arising from Plaintiff’s employment with Jackson Township, including those that could have been alleged in Superior Court of New Jersey, Ocean County, Docket No. OCN-L-003213-24. This includes any claims for damages, fees, or other relief, except those barred by law or public policy.
- The purpose of this Agreement is to avoid the cost and distraction of litigation.
- In exchange for the consideration provided, Plaintiff agrees to:
A. Dismiss the complaint with prejudice and release Defendants from all claims, including attorney’s fees, costs, and damages, known or unknown.
B. Defendants agree to pay Plaintiff a total of $2,000,000, allocated as follows:- $247,513.94 designated as back pay (“Back Pay Claim”).
- $350,000 designated as attorney’s fees (“Attorney Fees”).
- $1,402,486.06 designated as payment for Plaintiff’s claims under the New Jersey Law Against Discrimination, the New Jersey Civil Rights Act, and the Conscientious Employee Protection Act (CEPA) (“Whistleblower Claim”).
- Payment terms:
- The Township will issue payment to Plaintiff on or before January 30, 2026.
- Defendants must pay directly into an authorized deferred compensation account if directed by Plaintiff.
- The Township acknowledges these payments are owed due to prior failures to provide salary increases from 2019 through 2026.
Salary Adjustments Chart (Page 5):
| Year | Percentage Increase | Corrected Base Salary |
|---|---|---|
| 2018 | — | $268,482.40 |
| 2019 | 1.5% | $272,509.63 |
| 2020 | 2.0% | $277,959.83 |
| 2021 | 2.0% | $283,518.02 |
| 2022 | 2.0% | $289,188.38 |
| 2023 | 3.0% | $297,864.03 |
| 2024 | 4.0% | $309,778.59 |
| 2025 | 4.0% | $322,169.73 |
| 2026 | 4.0% | $334,056.52 |
- The Township acknowledges Plaintiff’s corrected salary for his final year (2025) should have been $276,977.59, and that his salary for 2026 should be $289,056.70 for pension calculation purposes.
- The Township agrees to assist Plaintiff in filing his retirement application and pension documentation based on the corrected salary.
- Payment schedule for Whistleblower Claim:
- $475,970.00 by January 30, 2026
- $321,336.72 by January 30, 2027
- $321,336.72 by January 30, 2028
- $321,336.72 by January 30, 2029
All attorney’s fee and whistleblower payments will be issued under IRS Form 1099.
- Plaintiff agrees to retire effective February 1, 2026, with his last day of service on January 31, 2026.
- Plaintiff agrees to be responsible for all taxes due on the payments and to indemnify Defendants for any tax-related liabilities.
- Both sides agree not to make disparaging statements about each other publicly or to the media.
- The Township and Plaintiff will coordinate the issuance of a public statement and ceremonial proclamation recognizing Plaintiff’s years of service.
- The Township agrees to lend police memorabilia and historical items to a non-profit organization created by Plaintiff for preservation and display.
- The Agreement may not be modified except in writing, signed by both parties.
- The Agreement is governed by the laws of the State of New Jersey.
- Plaintiff agrees to execute any additional documents required to finalize the settlement.
- If any part of this Agreement is deemed invalid, the remainder shall remain enforceable.
Execution Page:
Signed by Matthew D. Kunz, Plaintiff, on January 12, 2026, before Notary Public Mark E. Rodina of Ocean County, New Jersey.