§ 21-5-223 — Severance pay

Arkansas § 21-5-223

• Jurisdiction: Arkansas
• Title: 21

Text

(a) (1) If the agency director determines that it is necessary to implement the state workforce reduction policy due to state agency organization structure change, budgetary reductions, abolishment of positions or duties, loss of functional responsibility by the state agency, or the loss of federal funding, grants, or other special funds, the agency director, upon approval by the Secretary of the Department of Transformation and Shared Services, may authorize the payment of funds on a regular payroll schedule as severance pay to full-time, part-time, and job sharing classified and nonclassified employees in regular positions affected by the workforce reduction on the basis of the following pro rata lump sum for completed years of service, including any formally implemented probationary period: Over one (1) year up to five (5) years Eight hundred dollars ($800) Over five (5) years up to fifteen (15) years One thousand two hundred dollars ($1,200) Over fifteen (15) years One thousand six hundred dollars ($1,600) (2) The severance payments under subdivision (a)(1) of this section shall be in addition to the lump-sum payments allowed under the Uniform Attendance and Leave Policy Act, § 21-4-201 et seq. (3) The severance payments under subdivision (a)(1) of this section shall not be construed as exceeding the maximum salary. (4) The agency director shall file a notice of the anticipated implementation of the workforce reduction policy and of the lump-sum severance payments to be made under the state workforce reduction policy with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee. (b) (1) If the head of an institution of higher education determines that it is necessary to implement the state workforce reduction policy due to institution organization structure change, budgetary reductions, abolishment of positions or duties, loss of functional responsibility by the institution, or the loss of federal funding, grants, or other special funds, the head of the institution, upon approval by the Commissioner of the Division of Higher Education, may authorize the payment of funds on a regular payroll schedule as severance pay to full-time, part-time, and job sharing classified employees in regular positions affected by the workforce reduction on the basis of the following pro rata lump sum for completed years of service, including any formally implemented probationary period: Over one (1) year up to five (5) years Eight hundred dollars ($800) Over five (5) years up to fifteen (15) years One thousand two hundred dollars ($1,200) Over fifteen (15) years One thousand six hundred dollars ($1,600) (2) The severance payments under subdivision (b)(1) of this section shall be in addition to the lump-sum payments allowed under the Uniform Attendance and Leave Policy Act, § 21-4-201 et seq. (3) The severance payments under subdivision (b)(1) of this section shall not be construed as exceeding the maximum salary. (4) The head of the institution shall file a notice of the anticipated implementation of the workforce reduction policy and of the lump-sum severance payments to be made under the state workforce reduction policy with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

Legislative History

Amended by Act 2023, No. 786,§ 39, eff. 4/12/2023. Amended by Act 2019, No. 910,§ 6135, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 2310, eff. 7/1/2019. Amended by Act 2017, No. 599,§ 3, eff. 7/1/2017. Acts 2009, No. 688, § 13.