NY State Senate Bill 2019-S4292

Senate Bill S4292

Signed By Governor

2019-2020 Legislative Session

Relates to setting limits on severance packages for public at-will employees

download bill text pdf

Archive: Last Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 06, 2019	signed chap.595
Nov 26, 2019	delivered to governor
Jun 04, 2019	returned to senate passed assembly ordered to third reading cal.489 substituted for a2480
May 13, 2019	referred to ways and means delivered to assembly passed senate
Apr 10, 2019	advanced to third reading
Apr 09, 2019	2nd report cal.
Apr 08, 2019	1st report cal.369
Mar 06, 2019	referred to corporations, authorities and commissions

Votes

- May 13, 2019 - Floor Vote
  S4292
  
  59
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 13, 2019
      
      aye (59)
      
      Addabbo Jr.
      
      Amedore
      
      Antonacci
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      nay (1)
      
      Akshar
      
      excused (2)
      
      Funke
      
      O'Mara
  Apr 8, 2019 - Corporations, Authorities And Commissions Committee Vote
  S4292
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Corporations, Authorities And Commissions Committee Vote: Apr 8, 2019
      
      aye (7)
      
      Boyle
      
      Comrie
      
      Gounardes
      
      Mayer
      
      Ramos
      
      Ranzenhofer
      
      Skoufis

2019-S4292 (ACTIVE) - Details

See Assembly Version of this Bill:: A2480
Law Section:: Public Authorities Law
Laws Affected:: Add §2854, Pub Auth L
Versions Introduced in 2017-2018 Legislative Session:: A10076

2019-S4292 (ACTIVE) - Summary

Sets limits on severance packages equal to three months salary for public at-will employees not subject to a collective bargaining agreement or union contract.

2019-S4292 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4292

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to amend the public authorities law, in
relation to setting limits on severance packages for public at-will
employees

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill limits severance pay clauses to three months' pay for at-will
employees of public benefit authorities organized under the public
authorities law.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 states the act shall be known as the severance pay limitation
act.

Section 2 adds § 2854 under Article 9, Title 3 of the New York Public
Benefit Authorities Law to define the term "at-will employee" and limit
severance packages for at-will employees to no more than three months'

pay. It further ensures that severance payments are not be considered in
calculating retirement benefits and provides details on the distribution
of severance benefits in the event the at-will employee dies prior to
receiving any and all severance pay benefits.

Section 3 states the bill shall take effect immediately.

 
JUSTIFICATION:

Recently, the Executive Director of the Erie County Water Authority
renegotiated his contract to include a "golden parachute" (severance
pay) clause that requires the Authority to pay him his full salary until
the year 2020 if he is terminated without cause. The County Legislature
modified the contract, just months before the political party control-
ling the authority is set to change. As a result of this change, taxpay-
ers stand to lose approximately $360,000 if he is replaced before the
contract expires. Other individuals at the Authority have negotiated
similar golden parachute contracts in the past.

While golden parachute clauses may be appropriate in the private sector,
such clauses are inappropriate in the public sector where the taxpayers
are footing the bill. This practice seeks to insulate political appoint-
ees at the expense of taxpayers and is contrary to good government.

This bill would limit severance for at-will employees to three months'
pay. Other states such as Minnesota and Utah have enacted similar meas-
ures to curb abuses of political authority by placing reasonable limits
on severance payouts.

 
PRIOR LEGISLATIVE HISTORY:

2017-2018: A.10076 - Passed Assembly

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S4292 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4292
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               March 6, 2019
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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 setting
   limits on severance packages for public at-will employees

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. This act shall be known and may be cited as the "severance
 pay limitation act".
   § 2.  The public authorities law is amended by adding  a  new  section
 2854 to read as follows:
   § 2854. SEVERANCE PACKAGES. 1. FOR THE PURPOSES OF THIS SECTION:
   (A)  "AT-WILL EMPLOYEE" SHALL MEAN AN EMPLOYEE OF ANY ENTITY ORGANIZED
 UNDER THIS CHAPTER.   ANY EMPLOYEE  THAT  IS  COVERED  BY  A  COLLECTIVE
 BARGAINING  AGREEMENT  OR  UNION  CONTRACT  SHALL  NOT  BE CONSIDERED AN
 AT-WILL EMPLOYEE FOR THE PURPOSE OF THIS SECTION.
   (B) "SEVERANCE PAY FOR AN AT-WILL EMPLOYEE" SHALL INCLUDE BENEFITS  OR
 COMPENSATION WITH A QUANTIFIABLE MONETARY VALUE THAT ARE PROVIDED FOR AN
 AT-WILL EMPLOYEE UPON TERMINATION OF EMPLOYMENT AND SHALL NOT BE CONSID-
 ERED  PART  OF THE AT-WILL EMPLOYEE'S ANNUAL WAGES AND BENEFITS. "SEVER-
 ANCE PAY FOR AN AT-WILL EMPLOYEE" SHALL NOT INCLUDE PAYMENTS FOR ACCUMU-
 LATED VACATION, ACCUMULATED  SICK  LEAVE,  AND  ACCUMULATED  SICK  LEAVE
 LIQUIDATED  TO  COVER  THE  COST  OF GROUP TERM INSURANCE OR PAYMENTS OF
 PERIODIC CONTRIBUTIONS BY AN EMPLOYER TOWARD PREMIUMS FOR  GROUP  INSUR-
 ANCE POLICIES.
   2.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 SEVERANCE PAY PROVIDED FOR AN AT-WILL EMPLOYEE LEAVING EMPLOYMENT  SHALL
 NOT EXCEED AN AMOUNT EQUIVALENT TO THEIR PRIOR THREE MONTHS' SALARY.
   3.  NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE CONTRARY,
 THE SEVERANCE PAY FOR AN AT-WILL EMPLOYEE SHALL BE EXCLUDED FROM RETIRE-
 MENT DEDUCTIONS AND FROM ANY CALCULATIONS OF RETIREMENT BENEFITS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00384-01-9

 S. 4292                             2
 
   4. IF A RETIRED OR TERMINATED AT-WILL  EMPLOYEE  DIES  BEFORE  ALL  OF
 THEIR  SEVERANCE PAY HAS BEEN DISBURSED, THE BALANCE DUE MUST BE PAID TO
 A NAMED BENEFICIARY OR, LACKING ONE, TO THE DECEDENT'S ESTATE.
   5.  NO  COLLECTIVE  BARGAINING  AGREEMENT  OR  UNION CONTRACT SHALL BE
 ALTERED BY THE PROVISIONS OF THIS SECTION.
   § 3. This act shall take effect immediately.

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