What's happening
This bill prohibits state and local authorities in New York from giving excessive severance payments or benefits beyond ten weeks after employment ends.
Why it matters
Limits taxpayer liability for severance. By capping severance payments and benefits at what the employee was already receiving and restricting them to ten weeks, the bill seeks to prevent large, potentially controversial payouts funded by public money.
Promotes accountability in public sector hiring and firing decisions. Authorities may be less likely to offer overly generous contracts as incentives for recruitment or as golden parachutes for departing executives, encouraging more prudent management.
Applies to future contracts only. The law would not retroactively affect existing agreements, but would have a significant impact on all new, renewed, or extended contracts, shaping future employment negotiations.
Could influence talent recruitment and retention. While intended to curb excess, the bill may also affect the ability of state and local authorities to attract or retain high-level employees who expect more robust severance packages compared to the private sector.
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Who cares
Headline styles
Limit State Worker Severance
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to corporations, authorities and commissions
- Referred to corporations, authorities and commissions
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4624
2019-2020 Regular Sessions
IN SENATE
March 18, 2019
Introduced by Sens. RANZENHOFER, JACOBS -- read twice and ordered printed, and when printed to be committed 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.
Sponsor's memo
Title of bill
An act to amend the public authorities law, in relation to employment agreements by state and local authorities
Purpose
To bar certain severance agreements in employment contracts or agree- ments entered into by state and local authorities.
Summary of provisions
Section 1 amends the Public Authority Law to add a new section 2854. This section provides that no state or local authority shall enter into an employment contract or agreement or extension or renewal of a contract or agreement that provides that in the event the employed person shall cease employment, such person shall receive any payment or other benefit not required by state or federal law in an amount in excess of the periodic payment or benefit such person was receiving when employment ended or for a period in excess of ten weeks after such employment ends.
Section 2 Effective date.
Justification
From time to time public authorities have entered into severance pack- ages that have provided for substantial severance packages for persons who are leaving the authority or who have been dismissed. Ultimately, public authorities are spending public money, and such agreements are a wasteful and improvident use of scarce public resources, better reserved to support the purposes for which the authority was formed.
Legislative history
2018 - S.7932/A.10338 - RULES/Corporations
Fiscal implications
Savings for state and local authorities through reduction in unnecessary costs.
Effective date
This act will take effect immediately and shall apply to any contract or renewal or extension of contract dated after this act shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.