§ 2854 — Severance packages

§ 2854. Severance packages. 1. For the purposes of this section:\n (a) "at-will employee" shall mean an employee of any entity organized\nunder this chapter. Any employee that is covered by a collective\nbargaining agreement or union contract shall not be considered an\nat-will employee for the purpose of this section.\n (b) "severance pay for an at-will employee" shall include benefits or\ncompensation with a quantifiable monetary value that are provided for an\nat-will employee upon termination of employment and shall not be\nconsidered part of the at-will employee's annual wages and benefits.\n"Severance pay for an at-will employee" shall not include payments for\naccumulated vacation, accumulated sick leave, and accumulated sick leave\nliquidated to cover the cost of group term insurance or payments of\nperiodic contributions by an employer toward premiums for group\ninsurance policies.\n 2. Notwithstanding any other law, rule or regulation to the contrary,\nseverance pay provided for an at-will employee leaving employment shall\nnot exceed an amount equivalent to their prior three months' salary.\n 3. Notwithstanding any other law, rule or regulation to the contrary,\nthe severance pay for an at-will employee shall be excluded from\nretirement deductions and from any calculations of retirement benefits.\n 4. If a retired or terminated at-will employee dies before all of\ntheir severance pay has been disbursed, the balance due must be paid to\na named beneficiary or, lacking one, to the decedent's estate.\n 5. No collective bargaining agreement or union contract shall be\naltered by the provisions of this section.\n