What's happening
This bill prohibits state and local authorities from offering excessive or extended post-employment payments or benefits in employment contracts.
Why it matters
Limits “golden parachute” payouts. By capping post-employment payments to no more than what an employee was already receiving, and limiting their duration to ten weeks, the bill prevents large severance packages sometimes given to public officials, which can be seen as wasteful or unfair to taxpayers.
Applies to all state and local authorities. The restrictions are broad, covering a wide range of public sector jobs and contracts, and are not limited to a specific type or level of employee, increasing its relevance to anyone working for or interested in public employment.
Closes contract loopholes. The law applies not just to new contracts, but also to renewals and extensions, preventing authorities from sidestepping the rules by modifying existing agreements.
Focuses on fiscal responsibility and public trust. By standardizing post-employment benefits, the bill aims to ensure taxpayer money is not used for excessive perks, potentially increasing public confidence in government and how it manages employment and compensation.
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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 not required by law above the employee’s existing periodic amount or beyond ten weeks.
Authority employees and job candidates
Contractual payments and benefits after employment ends would face limits unless required by state or federal law.
Authority boards and contract negotiators
They would need to apply the limits to contracts, renewals and extensions dated after the bill takes effect, which would be immediately upon becoming law.
Headline styles
Limit Government Severance Payouts
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Enacting clause stricken
- 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 State Worker Severance
In Senate Committee · Corporations, Authorities And Commissions · Sponsor Michael H. Ranzenhofer
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1262
2019-2020 Regular Sessions
IN ASSEMBLY
January 14, 2019
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.
LBD02222-01-9
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.