HB 6009

HOUSE BILL NO. 6009
A bill to regulate certain provisions in certain public
employment contracts; to limit severance payments to certain public employees
and public officers; and to require the disclosure or publication of certain
public employment contracts.
the people of the state of michigan enact:
Sec. 1. This act may be
cited as the "state employment contract regulation act".
Sec. 3. As used in this act:
(a) "Severance pay" means compensation that is both
of the following:
(i)
Payable or paid upon or after 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.
State employee does not include an employee in the state classified civil
service.
(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), this
state shall not do either of the following:
(a) Enter into an employment
contract with a state employee if any of the following conditions apply:
(i)
The employment contract 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) The
employment contract prohibits the state employee from disclosing any of the
following:
(A) Factual information about an alleged
violation of law, including, but not limited to, discrimination and sexual
harassment, in the state employee's workplace.
(B) The existence of the employment
contract.
(C) A portion of or the full text of
the employment contract.
(iii) The
employment contract does not state that the employment contract represents the
complete and exclusive agreement between the parties to the employment contract.
(b) Pay to a state employee
severance pay in an amount greater than what 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 what 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,
subject to subsection (4), 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 what is authorized under subsection (1)(a)(i) if the employment contract
releases, to the extent allowed by law, all claims the state employee may have
against this state.
(b) Pay to the state employee severance pay as provided for in the employment
contract described in subdivision (a).
(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 what 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, subject to subsection
(4), 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 what is authorized under subsection (1)(a)(i) if the employment contract releases, to the extent
allowed by law, all claims the state employee may have against this state.
(b) Pay to the state employee
severance pay as provided for in the employment contract described in
subdivision (a).
(4) If this state enters into an employment contract with a state employee or state officer that provides
for severance pay to the state employee or state officer in an amount equal to or greater
than an amount equal to 6 weeks of the state
employee's or state officer's normal wages,
the public body that employs the state
employee or in which the state officer serves shall,
not later than 28 days after the employment contract is entered into and to the
extent allowed by law, make the full text of
the employment contract available to the public on the public body's website.
Sec.
7. (1) Except as otherwise provided in subsection (2) or (3), this state shall
not do any of the following:
(a) Enter into an employment
contract with a state officer if any of the following conditions apply:
(i) The
employment contract provides for severance pay to the state officer.
(ii) The
employment contract prohibits the state officer from disclosing any of the
following:
(A) Factual information about an alleged
violation of law, including, but not limited to, discrimination and sexual
harassment, in the state officer's workplace.
(B) The existence of the employment
contract.
(C) A portion of or the full text of
the employment contract.
(iii)
The employment contract does not state that the employment contract represents
the complete and exclusive agreement between the parties to the employment contract.
(b) Pay severance pay to a state
officer.
(c) Enter into a nondisclosure or
confidentiality agreement with a state officer regarding the performance of the
state officer's official duties, unless confidentiality is required by law.
(2) For a state officer in the
executive branch, if the attorney general determines that severance pay for the
state officer 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, subject to subsection (4) and section 5(4), do either of
the following:
(a) Enter into an employment
contract with the state officer that provides for severance pay to the state officer
if the employment contract releases, to the extent allowed by law, all claims
the state officer may have against this state.
(b) Pay to the state officer
severance pay as provided for in the employment contract described in
subdivision (a).
(3) For a state officer in the
legislative branch, if the legal counsel for the public body in which the
public officer serves determines that severance pay for the state officer 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, subject to subsection (4) and section 5(4), do either of the following:
(a) Enter into an employment
contract with the state officer that provides for severance pay to the state
officer if the employment contract releases, to the extent allowed by law, all
claims the state officer may have against this state.
(b) Pay to the state officer
severance pay as provided for in the employment contract described in
subdivision (a).
(4) If a determination is made under
subsection (2) or (3) that severance pay for a state officer 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, the public body in which the
public officer serves shall, not later than 3 days after the employment
contract is entered into and to the extent allowed by law, submit by electronic
means the full text of the state officer's employment contract to all of the
following:
(a) The speaker of the house of
representatives.
(b) The minority leader of the house
of representatives.
(c) The senate majority leader.
(d) The senate minority leader.
Sec.
9. This act applies to an employment contract that is entered into, amended,
extended, or renewed on or after the effective date of this act.