What's happening
This bill prohibits state and local authorities in New York from offering excessive or extended post-employment payments or benefits in employment contracts.
Why it matters
Closes loopholes for large "golden parachute" payouts. By capping both the amount and the duration of post-employment payments or benefits to what the employee was already receiving (and limiting extended payments to 10 weeks), this bill seeks to prevent state and local authorities from offering lucrative severance or "buyout" packages that can strain public resources.
Ensures taxpayer funds are used responsibly. The bill directly addresses concerns that public money should not be used for excessive or unjustified compensation to departing employees, thereby promoting greater fiscal responsibility and transparency in government employment practices.
Limits special deals and backroom negotiations. By restricting what can be included in employment contracts, the bill makes it more difficult for authorities to negotiate special, potentially secretive deals for executives or employees, which can foster greater equity and trust in public institutions.
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Who cares
State and local authorities
The bill would bar new, renewed or extended employment agreements from promising post-employment payments or benefits beyond the employee’s existing periodic level or for more than ten weeks, unless required by state or federal law.
Authority employees and prospective hires
The bill would limit the payments and benefits they could negotiate to receive after leaving employment under covered agreements.
Authority boards and employment negotiators
They would need to ensure contracts, renewals and extensions dated after the bill takes effect comply with the new limits.
Headline styles
Limit Public Severance Payouts
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to corporations, authorities and commissions
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Government Severance Packages
In Senate Committee · Rules · Sponsor Michael H. Ranzenhofer
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
10338
IN ASSEMBLY
April 10, 2018
Introduced by M. of A. PAULIN -- read once and referred to the Committee on Corporations, Authorities and Commissions
AN ACT to amend the public authorities law, in relation to employment agreements by state and local authorities
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The public authorities law is amended by adding a new section 2854 to read as follows:
§ 2854. Employment agreements. No state or local authority shall enter into an employment contract or agreement or extension or renewal of a contract or agreement with any person that provides that, in the event the person shall cease employment, such person shall receive any payment or other benefit not required by state or federal law: (a) in an amount in excess of the periodic payment or benefit such person was receiving when employment ended; or (b) for a period in excess of ten weeks after such employment ends.
§ 2. This act shall take effect immediately and shall apply to any contract or renewal or extension of contract dated after this act shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15038-01-8
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.