Bill > HB422

This bill establishes new rules for severance pay for public employees in New Mexico, meaning any officer or employee of a state agency paid from public funds. For employment contracts with a state agency valued at $150,000 or more annually, or for renewals and renegotiations of existing contracts, any severance pay provision must limit the payout to no more than ten weeks of compensation and prohibit payment if the employee is terminated for misconduct; additionally, all such severance provisions and related documents must be made public. Severance pay can also be provided outside of a contract as a settlement for a court employment dispute, but this payout is capped at six weeks of compensation and cannot restrict parties from discussing the dispute or settlement. Severance pay, defined as compensation for future employment services provided to a terminated employee, does not include payment for earned leave, early retirement benefits from an actuarially funded pension plan, or certain insurance cost subsidies available to all employees upon retirement. These provisions apply to contracts entered into, extended, or renewed after June 30, 2015, and become effective on July 1, 2015.