Florida Passes Public Worker Severance Pay Law
June 24, 2011 (PLANSPONSOR.com) – Florida Governor Rick Scott has
signed legislation placing restrictions on severance pay for public
workers.
The law provides that effective July 1, 2011, a unit of
government that enters into a contract or employment agreement, or renewal
or renegotiation of an existing contract or employment agreement, that
contains a provision for severance pay with an officer, agent, employee,
or contractor must include a requirement that severance pay provided may
not exceed an amount greater than 20 weeks of compensation. In addition,
it includes a prohibition of provision of severance pay when the officer,
agent, employee, or contractor has been fired for
misconduct.
Also effective July 1, 2011, an officer, agent, employee, or
contractor may receive severance pay that is not provided for in a
contract or employment agreement if the severance pay represents the
settlement of an employment dispute. Such severance pay may not exceed an
amount greater than six weeks of compensation. The settlement may not
include provisions that limit the ability of any party to the settlement
to discuss the dispute or settlement.
Under the legislation, severance pay means the actual or
constructive compensation, including salary, benefits, or perquisites, for
employment services yet to be rendered which is provided to an employee
who has recently been or is about to be
terminated.
- The term does not include compensation for:
- Earned and accrued annual, sick, compensatory, or
administrative leave;
- Early retirement under provisions established in an
actuarially funded pension plan; or
- Any subsidy for the cost of a group insurance plan available
to an employee upon normal or disability retirement that is by policy
available to all employees of the unit of government pursuant to the
unitfs health insurance plan.
Text of the bill is here.
Rebecca Moore
editors@plansponsor.com
Copyright ©1989-2010 Asset International, Inc. All Rights
Reserved. No Reproduction without Prior Authorization