A northern New Jersey school district plans to sue its superintendent in a bid to recover almost $38,000 in alleged salary overpayments he received under a contract the state forced it to rescind.

The Daily Record of Parsippany reports the Parsippany-Troy Hills school district recently informed state officials of their intentions, saying they had no other legal alternative to recoup the funds.

State officials contend the district paid Lee Seitz more money than allowed under a state salary cap, saying district leaders signed a contract that had not received proper authorization from the state.

Executive Morris County Superintendent Kathleen Serafino had recommended the district deduct money from Seitz's paycheck. But district officials have said that would be illegal, claiming that withholding pay would constitute a disorderly person's offense.

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