(1)Except
as expressly permitted pursuant to subsection (1.5) of this section, if any
governmental unit or government-financed entity enters into an employment
contract or employment contract extension with a government-supported official or
employee, such employment contract or employment contract extension shall
contain terms that clearly state that:
(a)Such employment contract is subject to termination by either party to
such contract at any time during the term of such contract and that such official or
employee shall be deemed to be an employee-at-will;
(b)No compensation, whether as a buy-out of the remaining term of the
contract, as liquidated damages, or as any other form of remuneration, shall be
owed or paid to such government-supported official or employee upon or
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(1) Except
as expressly permitted pursuant to subsection (1.5) of this section, if any
governmental unit or government-financed entity enters into an employment
contract or employment contract extension with a government-supported official or
employee, such employment contract or employment contract extension shall
contain terms that clearly state that:
(a) Such employment contract is subject to termination by either party to
such contract at any time during the term of such contract and that such official or
employee shall be deemed to be an employee-at-will;
(b) No compensation, whether as a buy-out of the remaining term of the
contract, as liquidated damages, or as any other form of remuneration, shall be
owed or paid to such government-supported official or employee upon or after the
termination of such contract except for compensation that was earned prior to
termination prorated to the date of termination; and
(c) If the contract is not substantially in compliance with the prohibition
against payment of postemployment compensation, the contract is null and void.
(1.5) (a) Notwithstanding the provisions of subsection (1)(a) of this section,
each system of higher education and each campus of each state institution of
higher education may have in effect employment contracts or employment contract
extensions having a duration not more than five years with not more than six
government-supported officials or employees if:
(I) The governing board of the institution determines that the contract or
extension is necessary for the hiring or retaining of the employee in light of
prevailing market conditions and competitive employment practices in other states;
(II) The contract contains a clause that the institution remains free to
terminate the contract or extension without penalty if sufficient funds are not
appropriated.
(b) Nothing in this subsection (1.5) shall be construed to exempt any
governmental unit or government-financed entity from the requirements of section
24-19-103.
(c) Notwithstanding the provisions of paragraph (a) of subsection (1) of this
section or paragraph (a) of this subsection (1.5), each system of higher education
and each campus of each state institution of higher education may have in effect an
unlimited number of employment contracts or employment contract extensions
having a duration of not more than five years with an unlimited number of
government-supported officials or employees if the employment contracts or
employment contract extensions are for research to be performed in university
settings. A contract executed pursuant to this paragraph (c) shall include a
provision that the contract shall become unenforceable if, during the term of the
contract, the system of higher education or campus of a state institution of higher
education that is a party to the contract:
(I) Ceases to be an enterprise, as defined in section 20 (2)(d) of article X of
the state constitution; and
(II) Lacks present cash reserves sufficient to pledge irrevocably to satisfy
the terms of the contract.
(d) Notwithstanding the provisions of subsection (1)(a) or (1.5)(a) of this
section, each system of higher education and each campus of each state institution
of higher education may, subject to the approval of the chief executive officer of
the system or institution and any rules or limitations established by the chief
executive officer, have in effect an unlimited number of term employment contracts
or term employment contract extensions having a duration of five years or fewer
with an unlimited number of government-supported officials or employees if the
term employment contracts or term employment contract extensions are for half-time or longer, non-tenure-track classroom teaching appointments or librarian
appointments. A person employed in a classroom teaching appointment pursuant to
a term employment contract or term employment contract extension described in
this subsection (1.5) may have duties in addition to classroom teaching, as described
in the contract or contract extension. A term employment contract or term
employment contract extension executed pursuant to this subsection (1.5) must
include a provision stating the contract or contract extension is unenforceable if,
during the term of the contract or contract extension, the system of higher
education or campus of a state institution of higher education that is a party to the
contract:
(I) Ceases to be an enterprise, as defined in section 20 (2)(d) of article X of
the state constitution; and
(II) Lacks present cash reserves sufficient to pledge irrevocably to satisfy
the terms of the contract.
(2) If any governmental unit or government-financed entity enters into an
employment contract or employment contract extension with any government-supported official or employee on or after July 1, 1993, such governmental unit or
government-financed entity shall make the terms of such contract available to the
public for inspection and copying during regular business hours.
(3) The provisions of this section shall not be interpreted to authorize the
termination of any government-supported official or employee for any reason that
is contrary to applicable federal, state, or local law.
(4) (a) No governmental unit or government-financed entity shall enter into
an employment contract with a government-supported official or employee or
extend an existing employment contract with a government-supported official or
employee if such employment contract or contract extension contains any
provisions that are intended to evade the requirements of this article. Contractual
provisions that are prohibited under the provisions of subsection (1) of this section
include, but are not limited to, any provision that allows a government-supported
official or employee to earn an unreasonably large portion of contractual
compensation during the early stages of the term of employment of such
government-supported official or employee.
(b) The provisions of paragraph (a) of this subsection (4) shall not be
interpreted to prohibit the reimbursement of any actual relocation expenses of
government-supported officials or employees or the payment of reasonable
incentives for accepting employment to government-supported officials or
employees.