Bill Text: TX HB762 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to severance pay for political subdivision employees and independent contractors.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-11-12 - Filed [HB762 Detail]
Download: Texas-2025-HB762-Introduced.html
| 89R3073 SCL-F | ||
| By: Leach | H.B. No. 762 | |
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| relating to severance pay for political subdivision employees and | ||
| independent contractors. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 180, Local Government Code, is amended | ||
| by adding Section 180.011 to read as follows: | ||
| Sec. 180.011. LIMITATION ON SEVERANCE PAY FOR EMPLOYEES AND | ||
| INDEPENDENT CONTRACTORS. (a) In this section: | ||
| (1) "Misconduct" means an act or omission by an | ||
| employee or contractor of a political subdivision in the | ||
| performance of the employee's or contractor's duties that the | ||
| governing body of the political subdivision determines to be | ||
| misconduct. The term includes any finding of criminal conduct. | ||
| (2) "Severance pay" means dismissal or separation | ||
| income paid on termination of: | ||
| (A) the employment of an employee that is in | ||
| addition to the employee's usual earnings from the employer at the | ||
| time of termination; or | ||
| (B) the contract of an independent contractor | ||
| that is in addition to the contractor's usual compensation from the | ||
| employer as prescribed by the contract. | ||
| (b) This section does not apply to a public or teaching | ||
| hospital. | ||
| (c) A political subdivision 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 employee or independent contractor must | ||
| include: | ||
| (1) a requirement that severance pay that is paid from | ||
| tax revenue may not exceed the amount of compensation, at the rate | ||
| at the termination of employment or the contract, the employee or | ||
| independent contractor would have been paid for 20 weeks, excluding | ||
| paid time off or accrued vacation leave; and | ||
| (2) a prohibition of the provision of severance pay | ||
| when the employee or independent contractor is terminated for | ||
| misconduct. | ||
| (d) A political subdivision shall post each severance | ||
| agreement in a prominent place on the political subdivision's | ||
| Internet website. | ||
| (e) This subsection applies to an action brought against a | ||
| political subdivision by an employee or independent contractor of | ||
| the political subdivision arising from the termination of the | ||
| person's employment or contract. A court may not issue a writ of | ||
| execution or mandamus in connection with a judgment in the action if | ||
| the judgment does not comply with this section. | ||
| SECTION 2. Section 180.011, Local Government Code, as added | ||
| by this Act, applies only to a contract entered into or an action | ||
| filed on or after the effective date of this Act. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
