Bill Text: MI HB4199 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Labor; public service employment; severance pay for certain public employees and contractors; prohibit. Creates new act.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-02-18 - Printed Bill Filed 02/18/2015 [HB4199 Detail]
Download: Michigan-2015-HB4199-Introduced.html
HOUSE BILL No. 4199
February 17, 2015, Introduced by Rep. Somerville and referred to the Committee on Financial Liability Reform.
A bill to prohibit certain terms in public employment
contracts; to prohibit severance pay for voluntary termination of
employment; to limit contract terms and payments for early
termination of certain contracts; and to provide for civil fines.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"public employee severance pay regulation act".
Sec. 2. As used in this act, "severance pay" means
compensation that is payable or paid upon the termination of
employment that is in addition to any wages earned or generally
applicable retirement benefit.
Sec. 3. This state, a local unit of government, or any other
public employer in this state shall not include a provision in an
employment contract that provides for, and shall not pay, severance
pay to a public employee who voluntarily terminates public
employment, except in the following situations:
(a) The employee meets the conditions to leave the employment
under a reduction-in-force plan or early retirement agreement that
includes a severance payment.
(b) The employee qualifies for the payment under a general
policy adopted for employees in the state classified service or by
a merit system of a local unit of government.
(c) The public employer initiates the not-for-cause
termination.
Sec. 4. This state, a local unit of government, or any other
public employer in this state shall not pay severance pay under a
contract for services upon early termination of the contract, if
the early termination is instigated by the contractor. A contract
entered into on or after April 1, 2015 shall not provide for
payment of severance pay in violation of this act. This section
does not prohibit a contract term providing for or payment of a
bonus for early completion of a contract for the production of a
deliverable.
Sec. 5. A public employee or officer who authorizes a contract
term or payment in violation of this act is responsible for a civil
fine of not more than $25,000.00. The attorney general or the
attorney for the local unit of government may bring an action in
the circuit court for a violation of this act. A civil fine
collected under this section shall be submitted to the state
treasurer for deposit in the general fund of this state.
