Michigan House OKs stricter policies for state employee severance pay

Michigan House OKs stricter policies for state employee severance pay

In the aftermath of controversies surrounding state employee separation agreements, the Michigan House advanced legislation setting limits on severance pay and adding new requirements barring nondisclosure agreements. Sponsored by Rep. John Roth, R-Traverse City, House Bill 4591 would limit the use of nondisclosure agreements and severance pay for outgoing employees and officials in both the administration and the legislature. The legislation would put in place a policy capping severance pay for departing employees at 12 weeks of the person’s normal wages, with exceptions for legal settlements. The policy would also prohibit any separation agreements that prevent the employee from talking about the existence or nature of the contract, and any separation agreement could also not bar an employee from discussing allegations of discrimination or harassment in the workplace. “The bill sets parameters for who makes these decisions, limits the amount of taxpayer money being used and also increases the transparency of these transactions,” Roth said. “Regardless who’s in power in Lansing, we need to limit these transactions, we need to shed light on them when they do occur.” The legislation …
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