House Passes Limit on Separation Payments

Liz Gullett

May 11, 2021

The House unanimously passed legislation aimed at preventing large payouts and limiting confidentiality agreements for former state employees. The bill generally prohibits the legislature or administration from entering into a severance agreement with any state employee for more than 12 weeks of pay. State officers such as department heads would be prohibited from receiving a severance except to settle legal claims. The bill would also prohibit employment contracts that prevent an employee or officer from disclosing alleged violations of law or the contract itself.

The bill allows the attorney general to authorize severance payments for executive branch employees in a greater amount only if deemed necessary to serve the best interests of the state in preempting litigation. House and Senate legal counsels could make the same determination for legislative employees and officers. The bill has been referred to the Senate Oversight Committee for consideration.

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