2.110.070 Approval of severance pay.
(a) Prior Authorization Required. No severance or other payments beyond those authorized by Federal, State or local law, or contract, shall be made to a current or former employee without prior authorization by the Governing Body.
(b) Eligibility – Permanent Reduction in Force. Severance pay set forth herein is available only to employees who meet all of the following eligibility requirements:
(1) The employee’s position has been eliminated pursuant to a reduction in force;
(2) The employee has been employed with the City for one or more continuous years of service;
(3) The employee has not accepted a position with the City or with another governmental entity pursuant to a consolidation agreement;
(4) The employee has not accepted a transfer of employment to an entity that is assuming operational responsibility via contract with the City; and
(5) The employee has executed an agreement and complete release of all claims against the City.
(c) Payment.
(1) Eligible employees hired prior to January 1, 2011, shall be eligible to receive severance pay according to the following schedule; provided, however, that in no event shall severance pay exceed one year of salary:
Length of Service | Separation Pay |
Zero to Less Than One Year | Zero |
One Year to Less than Ten Years | One week’s salary for each complete year of service, as of the date of separation |
Over Ten Years | Two weeks’ salary for each complete year of service, as of the date of separation |
(2) Eligible employees hired on January 1, 2011, and after, shall be eligible to receive severance pay at the rate of one week of salary for every year of service, prorated to the nearest month, but in no case less than four weeks salary and in no case more than 26 weeks’ salary.
(3) Severance pay shall be calculated using the employee’s regular base hourly wage and shall not include any premium payments.
(4) The City may elect to make severance payments in equal increments on a pay period basis until such time as the employee receives all severance pay due. In such a case, the payment will amount at least to the base pay of a regular biweekly pay period.
(5) Whether employees can draw both severance pay and unemployment compensation benefits will be dependent upon applicable State law.
(6) Employees who resign, retire or are terminated for cause shall not be eligible to receive severance pay. (Ord. 20206 § 21, 9-10-19.)
Cross References:City Council – Mayor, Chapter 2.15 TMC.