Bill > HB4317

This bill establishes new rules for severance pay for employees and independent contractors working for political subdivisions (such as local government entities) in Texas. The bill defines severance pay as additional income paid upon termination beyond an employee's or contractor's usual earnings, and defines misconduct as an act or omission that the governing body determines is inappropriate, including criminal conduct. It requires that any employment agreement or contract must limit severance pay from public funds to no more than 12 weeks of compensation at the employee's or contractor's current rate, and prohibit severance pay entirely if the person is terminated for misconduct. Additionally, political subdivisions must publicly post all severance agreements on their website. The bill applies only to employment agreements or contracts entered into or actions filed on or after the effective date, which is September 1, 2025. The legislation aims to provide transparency and restrict excessive severance payments for local government employees and contractors, ensuring that public funds are used responsibly.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4317