Bill Text: NY A02480 | 2019-2020 | General Assembly | Introduced

Bill Title: Sets limits on severance packages equal to three months salary for public at-will employees not subject to a collective bargaining agreement or union contract.

Spectrum: Partisan Bill (Democrat 9-0)

Status: (Introduced) 2019-06-04 - substituted by s4292 [A02480 Detail]

Download: New_York-2019-A02480-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 22, 2019
        Introduced  by M. of A. WALLACE -- read once and referred to the Commit-
          tee on Corporations, Authorities and Commissions
        AN ACT to amend the public  authorities  law,  in  relation  to  setting
          limits on severance packages for public at-will employees
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. This act shall be known and may be cited as the  "severance
     2  pay limitation act".
     3    §  2.    The public authorities law is amended by adding a new section
     4  2854 to read as follows:
     5    § 2854. Severance packages. 1. For the purposes of this section:
     6    (a) "at-will employee" shall mean an employee of any entity  organized
     7  under  this  chapter.    Any  employee  that  is covered by a collective
     8  bargaining agreement or  union  contract  shall  not  be  considered  an
     9  at-will employee for the purpose of this section.
    10    (b)  "severance pay for an at-will employee" shall include benefits or
    11  compensation with a quantifiable monetary value that are provided for an
    12  at-will employee upon termination of employment and shall not be consid-
    13  ered part of the at-will employee's annual wages and  benefits.  "Sever-
    14  ance pay for an at-will employee" shall not include payments for accumu-
    15  lated  vacation,  accumulated  sick  leave,  and  accumulated sick leave
    16  liquidated to cover the cost of group  term  insurance  or  payments  of
    17  periodic  contributions  by an employer toward premiums for group insur-
    18  ance policies.
    19    2. Notwithstanding any other law, rule or regulation to the  contrary,
    20  severance  pay provided for an at-will employee leaving employment shall
    21  not exceed an amount equivalent to their prior three months' salary.
    22    3. Notwithstanding any other law, rule or regulation to the  contrary,
    23  the severance pay for an at-will employee shall be excluded from retire-
    24  ment deductions and from any calculations of retirement benefits.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 2480                             2
     1    4.  If  a  retired  or  terminated at-will employee dies before all of
     2  their severance pay has been disbursed, the balance due must be paid  to
     3  a named beneficiary or, lacking one, to the decedent's estate.
     4    5.  No  collective  bargaining  agreement  or  union contract shall be
     5  altered by the provisions of this section.
     6    § 3. This act shall take effect immediately.