Texas SB2237 limits severance pay for certain political subdivision employees to 20 weeks of compensation and prohibits severance pay for misconduct.

Texas SB2237 amends the Local Government Code to limit severance pay for executive employees of political subdivisions. Severance pay cannot exceed the amount of compensation the employee would have been paid for 20 weeks, excluding paid time off or accrued vacation leave. Severance pay is also prohibited if the employee is terminated for misconduct. Political subdivisions must post severance agreements on their websites. The act applies to employment agreements entered into after its effective date, which is September 1, 2025.

Texas SB2237 limits severance pay for certain political subdivision employees to 20 weeks of compensation and prohibits severance pay for misconduct.

Texas SB2237 amends the Local Government Code to limit severance pay for executive employees of political subdivisions. Severance pay cannot exceed the amount of compensation the employee would have been paid for 20 weeks, excluding paid time off or accrued vacation leave. Severance pay is also prohibited if the employee is terminated for misconduct. Political subdivisions must post severance agreements on their websites. The act applies to employment agreements entered into after its effective date, which is September 1, 2025.