Bill > HB762

This bill establishes new regulations for severance pay for employees and independent contractors working for political subdivisions in Texas. The bill defines "misconduct" as an act or omission by an employee or contractor that the governing body determines to be inappropriate, including any criminal conduct, and "severance pay" as additional income paid upon termination beyond usual earnings or compensation. Political subdivisions must now include two key provisions in new or renewed contracts: first, severance pay from public money cannot exceed 20 weeks of compensation, excluding paid time off or vacation leave; and second, severance pay is prohibited if the employee or contractor is terminated for misconduct. Additionally, political subdivisions are required to post each severance agreement prominently on their website, and courts are prohibited from issuing writs of execution or mandamus for judgments that do not comply with these new rules. The bill does not apply to public or teaching hospitals, and will take effect on September 1, 2025, applying only to contracts entered into or actions filed on or after that date.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB762