Bill Text: MI HB4591 | 2021-2022 | 101st Legislature | Introduced
Bill Title: Public employees and officers: compensation and benefits; severance pay for executive and legislative branch employees and officers; limit, and require reporting if greater than a certain amount. Creates new act.
Spectrum: Partisan Bill (Republican 10-0)
Status: (Engrossed - Dead) 2022-03-23 - Referred To Committee Of The Whole With Substitute (s-1) [HB4591 Detail]
Download: Michigan-2021-HB4591-Introduced.html
HOUSE BILL NO. 4591
the people of the state of michigan enact:
Sec. 1. This act shall be known and may be cited as the "state employment contract regulation act".
(a) "Severance pay" means compensation that is both of the following:
(i) Payable or paid upon the termination of employment.
(ii) In addition to any of the following:
(A) Wages or benefits earned.
(B) Generally applicable retirement benefits.
(b) "State employee" means an individual employed in the executive or legislative branch of government of this state.
(c) "State officer" means an individual who is elected or appointed to an office created by law in the executive or legislative branch of government of this state.
Sec. 5. (1) Except as otherwise provided in subsection (2) or (3), and subject to subsection (4), this state shall not do either of the following:
(a) Enter into an employment contract with a state employee if the employment contract does either of the following:
(i) Provides for severance pay to the state employee in an amount that is greater than an amount equal to 12 weeks of the state employee's normal wages.
(ii) Prohibits the state employee from disclosing factual information about an alleged violation of law, including, but not limited to, discrimination and sexual harassment, in the state employee's workplace.
(b) Pay to a state employee severance pay in an amount greater than is authorized under subdivision (a)(i).
(2) For a state employee in the executive branch, if the attorney general determines that severance pay for the state employee in an amount greater than is authorized under subsection (1)(a)(i) is necessary to serve the best interests of this state based on the risk of litigation and the need to minimize the expenditure of public funds, this state may do either of the following:
(a) Enter into an employment contract with the state employee that provides for severance pay to the state employee in an amount greater than is authorized under subsection (1)(a)(i) if the employment contract releases, to the extent allowed under law, all claims the state employee may have against this state.
(b) Pay to the state employee severance pay in an amount greater than is authorized under subsection (1)(a)(i) if the state employee releases, to the extent allowed under law, all claims against this state.
(3) For a state employee in the legislative branch, if the legal counsel for the public body that employs the state employee determines that severance pay for the state employee in an amount greater than is authorized under subsection (1)(a)(i) is necessary to serve the best interests of this state based on the risk of litigation and the need to minimize the expenditure of public funds, this state may do either of the following:
(a) Enter into an employment contract with the state employee that provides for severance pay to the state employee in an amount greater than is authorized under subsection (1)(a)(i) if the employment contract releases, to the extent allowed under law, all claims the state employee may have against this state.
(b) Pay to the state employee severance pay in an amount greater than is authorized under subsection (1)(a)(i) if the state employee releases, to the extent allowed under law, all claims against this state.
(4) If this state enters into an employment contract with a state employee that provides for severance pay to the state employee in an amount equal to or greater than an amount equal to 6 weeks of the state employee's normal wages, the public body that employs the state employee must, unless otherwise prohibited by law, make all of the following information available to the public on its website and provide all of the following information to the chairpersons of the senate and house of representatives standing committees on appropriations:
(a) A description of the severance pay, including the maximum amount that may be paid expressed in dollars or in weeks of wages.
(b) If both of the following conditions are met, the title of the state employee's position:
(i) A determination is made under subsection (2) or (3) that severance pay for the state employee in an amount greater than is authorized under subsection (1)(a)(i) is necessary to serve the best interests of this state based on the risk of litigation and the need to minimize the expenditure of public funds.
(ii) Either of the following conditions is met:
(A) The state employee's employment contract provides for severance pay to the state employee in an amount greater than is authorized under subsection (1)(a)(i).
(B) The state employee is paid severance pay in an amount greater than is authorized under subsection (1)(a)(i).
Sec. 7. This state shall not do any of the following:
(a) Enter into an employment contract with a state officer if the employment contract does either of the following:
(i) Provides for severance pay to the state officer in an amount greater than is authorized under section 5(1)(a)(i).
(ii) Prohibits the state officer from disclosing factual information about an alleged violation of law, including, but not limited to, discrimination and sexual harassment, in the state officer's workplace.
(b) Pay severance pay to a state officer in an amount greater than is authorized under section 5(1)(a)(i).
(c) Pay severance pay to a state officer in violation of section 3 of article XI of the state constitution of 1963.
(d) Except as otherwise required by law, enter into a nondisclosure or confidentiality agreement with a state officer regarding the performance of the state officer's official duties.
Sec. 9. A state employee or state officer who authorizes an employment contract, nondisclosure agreement, confidentiality agreement, or payment in violation of this act is responsible for a civil fine of not more than $2,500.00 if the state employee or state officer knew, at the time of the authorization, that the contract, agreement, or payment violated this act. The attorney general may bring an action in the circuit court of Ingham County 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.
Sec. 11. (1) This act applies to an employee in the state classified civil service to the extent that it does not conflict with section 5 of article XI of the state constitution of 1963.
(2) This act applies to an employment contract that is entered into, amended, extended, or renewed on or after the effective date of this act.
