Amended in Assembly April 11, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 280


Introduced by Assembly Member Alejo

February 11, 2013


An act to amend Section 53260 ofbegin insert, and to add Section 53260.3 to,end insert the Government Code, relating to employment.

LEGISLATIVE COUNSEL’S DIGEST

AB 280, as amended, Alejo. Local agency employment contracts: maximum cash settlement.

Existing law requires all employment contracts between an employee and a local agency employer to contain a provision that provides for the amount of cash settlement that may be paid out if the contract is terminated, as specified. Existing law provides that the maximum settlement that an employee can receive is an amount equal to the monthly salary of the employee multiplied by the number of months left on the unexpired term of the contract, or, if the unexpired terms of the contract is greater than 18 months, an amount equal to the monthly salary of the employee multiplied by 18.

This bill would provide that in the case ofbegin insert the voluntary termination of the employment contract ofend insert a district superintendentbegin insert, deputy superintendent, assistant superintendent, or associate superintendentend insert of schools, regardless of the number of months left on the unexpired term of the contract, the maximum cash settlement shall be an amount equal to the monthly salary of the employee multiplied by 3begin insert. The bill would provide that in the case of the involuntary termination of the employment contract of a district superintendent, deputy superintendent, assistant superintendent, or associate superintendent of schools, regardless of the number of months left on the unexpired term of the contract, the maximum cash settlement shall be an amount equal to the monthly salary of the employee multiplied by 6end insert.

Existing law limits the amount of a cash or noncash settlement that a local agency employer may provide its district superintendent of schools to an amount no greater than the superintendent’s monthly salary multiplied by zero to 6 if it terminates the superintendent’s contract of employment and it is confirmed pursuant to an independent audit that the superintendent engaged in fraud, misappropriation of funds, or other illegal fiscal practices. In this case, existing law requires an administrative law judge, after a hearing, to determine the amount of the cash settlement.

This bill would change the maximum cash or noncash settlement amount that may be paid by a local agency employer to its district superintendentbegin insert, deputy superintendent, assistant superintendent, or associate superintendentend insert of schools under these provisions to an amount no greater than the superintendent’s monthly salary multiplied by zero tobegin delete 3end deletebegin insert oneend insert.

begin insert

The bill would also require that an unspecified calculation be used to determine the maximum sum that may be paid to a district superintendent, deputy superintendent, assistant superintendent, or associate superintendent who is placed on paid leave of absence. This bill additionally would require that the employee exhaust all accrued sick leave and vacation time before the paid leave of absence takes effect.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 53260 of the Government Code is
2amended to read:

3

53260.  

(a) All contracts of employment between an employee
4and a local agency employer shall include a provision that provides
5that regardless of the term of the contract, if the contract is
6terminated, the maximum cash settlement that an employee may
7receive shall be an amount equal to the monthly salary of the
8employee multiplied by the number of months left on the unexpired
9term of the contract, with the following exceptions:

P3    1(1) If the unexpired term of the contract is greater than 18
2months, the maximum cash settlement shall be an amount equal
3to the monthly salary of the employee multiplied by 18.

4(2) In the case ofbegin insert the voluntary termination of the employment
5contract ofend insert
a district superintendentbegin insert, deputy superintendent,
6assistant superintendent, or associate superintendentend insert
of schools,
7regardless of the number of months left on the unexpired term of
8the contract, the maximum cash settlement shall be an amount
9equal to the monthly salary of the employee multiplied by three.

begin insert

10(3) In the case of the involuntary termination of the employment
11contract of a district superintendent, deputy superintendent,
12assistant superintendent, or associate superintendent of schools,
13regardless of the number of months left on the unexpired term of
14the contract, the maximum cash settlement shall be an amount
15equal to the monthly salary of the employee multiplied by six.

end insert

16(b) (1) Notwithstanding subdivision (a), if a local agency
17employer, including an administrator appointed by the
18Superintendent, terminates its contract of employment with its
19district superintendentbegin insert, deputy superintendent, assistant
20superintendent, or associate superintendentend insert
of schools, that local
21agency employer may not provide a cash or noncash settlement to
22begin delete its superintendentend deletebegin insert that employeeend insert in an amount greater than the
23superintendent’sbegin insert, deputy superintendent’s, assistant
24superintendent’s, or associate superintendent’send insert
monthly salary
25multiplied by zero tobegin delete threeend deletebegin insert oneend insert if the local agency employer
26believes, and subsequently confirms, pursuant to an independent
27audit, that thebegin delete superintendentend deletebegin insert employeeend insert has engaged in fraud,
28misappropriation of funds, or other illegal fiscal practices. The
29amount of the cash settlement described in this paragraph shall be
30determined by an administrative law judge after a hearing.

31(2) This subdivisionbegin delete appliesend deletebegin insert shall applyend insert only to a contract for
32employment negotiated on or after January 1, 2014.

33(c) The cash settlement formula described in subdivisions (a)
34and (b) are maximum ceiling on the amounts that may be paid by
35a local agency employer to an employee and is not a target or
36example of the amount of the cash settlement to be paid by a local
37agency employer to an employee in all contract termination cases.

38begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 53260.3 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
39read:end insert

begin insert
P4    1

begin insert53260.3.end insert  

(a) (1) If a local agency employer, including an
2administrator appointed by the Superintendent, places a district
3superintendent, deputy superintendent, assistant superintendent,
4or associate superintendent of schools on paid leave of absence,
5regardless of the length of that leave of absence, the local agency
6employer may not pay the employee an amount greater than the
7superintendent’s, deputy superintendent’s, assistant
8superintendent’s, or associate superintendent’s monthly salary
9multiplied by _____ for the duration of his or her leave of absence.

10(2) The pay formula described in paragraph (1) is a maximum
11ceiling on the amount that may be paid by a local agency employer
12to a district superintendent, deputy superintendent, assistant
13superintendent, or associate superintendent of schools and is not
14a target or example of the amount to be paid by a local agency
15employer to an employee who is placed on a paid leave of absence
16in all cases.

17(b) Before a paid leave of absence for an employee subject to
18subdivision (a) takes effect, the local agency employer shall require
19the employee to exhaust all of his or her accrued sick leave and
20vacation time.

21(c) This section shall apply only to a contract for employment
22negotiated on or after January 1, 2014.

end insert


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