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Tuesday, October 13, 2015

New Law Limits Community College District's Employment Agreements

It's no secret that the issue of severance, retirement, and settlement agreements with government employees has been a hot topic lately - we previously reported on the recent amendment to FOIA to expressly provides that employee severance agreements should be treated as public records in the same way as settlement agreements. It is interesting, however, that the Illinois General Assembly chose to address only community college employee agreements in enacting a new law limiting the terms and provisions of employment agreements.
Public Act 99-0482 (text of the new law is below) becomes effective on September 22nd, but only applies to future agreements, and excludes collective bargaining agreements.
(110 ILCS 805/3-65 new) Employment contract limitations.
(a) This Section applies to employment contracts entered  into, amended, renewed, or extended after the effective date of  this amendatory Act of the 99th General Assembly. This Section  does not apply to collective bargaining agreements.
(b) The following apply to any employment contract entered  into with an employee of the community college district:
(1) Severance under the contract may not exceed one year salary and applicable benefits.
(2) A contract with a determinate start and end date may not exceed 4 years.
(3) The contract may not include any automatic rollover clauses, and all renewals or extensions of contracts must be made during an open meeting of the board.
(4) Public notice, in a form as determined by the State Board, must be given of an employment contract entered into, amended, renewed, or extended and must include a complete description of the action to be taken, as well the contract itself, including all addendums or any other documents that change an initial contract.
Post Authored by Julie Tappendorf


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