Albany, NY– Senator Michael H. Ranzenhofer (R-C-I, Amherst) has introduced legislation (S7932) today in the State Senate that significantly reduces the size of potential severance packages and imposes a new limit of 10 weeks of an employee’s salary at public authorities.
“Six-figure golden parachutes that guarantee a payout of more than double an employee’s salary are a wasteful use of public resources,” said Ranzenhofer. “Public authorities are spending taxpayer dollars, and these dollars would be better reserved for the actual purpose for why the authority was formed. That is why I have introduced legislation to end this lavish practice.”
The bill adds a new section to Public Authority Law. State or local authorities would be prohibited from entering into any employment contract or agreement that includes language, in the event the employed person shall cease employment, to provide compensation:
• in excess of the periodic payment made to the employee when employment ended; or
• for a period in excess of ten weeks after employment ends.
The proposal is expected to reduce expenditures for state and local authorities by reducing unnecessary costs.
If enacted, the legislation would be effective immediately. The new law would be applicable to any contract, renewal or extension, dated after this act shall have become law.