A.
Except as provided herein, the Town of Phillipsburg may, upon the request of any present or former employee of the Town, provide for the defense of any civil action brought against such employee on account of an act or omission in the scope of his or her employment or service to the Town.
B.
For purposes of this chapter, the term "employee" shall include any employee, official or appointee.
(1)
The provisions of this chapter shall apply to all employees irrespective of the number of hours worked per week, and whether they are elected or appointed, and shall also include an employee, whether or not such employee holds a professional license or certificate, being paid a fixed salary or hourly rate for the performance of his or her duties, but shall not include any person furnishing professional or extraordinary unspecifiable services under separate appointment, retainer, agreement or contract.
(2)
This chapter shall also cover employees formerly holding office or employment, provided that the events giving rise to the cause of action or claim hereunder occur after the effective date of this section.
C.
For purposes of this chapter, the Town's authority to defend and indemnify shall extend to a cross-action, counterclaim or cross-complaint against an employee.
D.
Where the Town provides for the defense of an employee or former employee pursuant to this section, the Town shall provide indemnification for such employee. However, nothing in this chapter shall require the Town to pay for punitive or exemplary damages or damages resulting from the commission of a crime. The Town may, however, indemnify an employee for exemplary or punitive damages resulting from the employee's civil violation of state or federal law if, in the opinion of the Town Council, the acts committed by the employee on which the damages are based did not constitute actual fraud, actual malice, willful misconduct, or an intentional wrong.