AB 215, 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 a 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 of a district superintendent of schools, for contracts of employment negotiated on or after January 1, 2016, the maximum cash settlement shall be an amount equal to the monthly salary of the employee multiplied bybegin insert 12, or, if the employee was terminated for cause, an amount equal to the monthly salary of the employee multiplied byend insert 6.
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 confirms 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.
Thisbegin delete bill would,end deletebegin insert bill,end insert
with regard to a contract for employment negotiated on or after January 1, 2016,begin insert wouldend insert change the maximum cash or noncash settlement amount that may be paid by a local agency employer to its district superintendent of schools under these provisions to an amount no greater than the superintendent’s monthly salary multiplied by zero to 3.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 53260 of the Government Code is
2amended to read:
(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 contact, with the following exceptions:
10(1) If the unexpired term of the contract is greater than 18
11months, the maximum cash settlement shall be an amount equal
12to the monthly salary of the employee multiplied by 18.
13(2) In the case of a district superintendent of schools, for
14contracts of employment negotiated on or after January 1, 2016,
15the maximum cash settlement shall be an amount equal to the
16monthly salary of the employee multiplied bybegin insert 12, or, if the
17employee was terminated for cause, an amount equal to the
18monthly salary of the employee multiplied byend insert 6.
19(b) (1) Notwithstanding subdivision (a), if a local agency
20employer, including an administrator appointed by the
P3 1Superintendent, terminates its contract of employment with its
2district superintendent of schools, that local agency employerbegin delete mayend delete
3begin insert
shallend insert not provide a cash or noncash settlement to its superintendent
4in an amount greater than the superintendent’s monthly salary
5multiplied by zero to 3 if the local agency employer believes, and
6subsequently confirms, pursuant to an independent audit, that the
7superintendent has engaged in fraud, misappropriation of funds,
8or other illegal fiscal practices. The amount of the cash settlement
9described in this paragraph shall be determined by an
10administrative law judge after a hearing.
11(2) This subdivision applies only to a contract for employment
12negotiated on or after January 1, 2016.
13(c) The cash settlementbegin delete formulaend deletebegin insert
formulasend insert described in
14subdivisions (a) and (b) are maximumbegin delete ceiling on theend delete amounts that
15may be paid by a local agency employer to an employee andbegin delete isend delete not
16a target or example of the amount of the cash settlement to be paid
17by a local agency employer to an employee in all contract
18termination cases.
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