Transcript Slide 1

A New Paradigm for the
CIO Contract
Presented By: Mary Dowell
Overview
•
•
•
•
•
2
Legal Requirements
Entering Into Contracts
Renewing Contracts
Terminating Administrator
Contractual Provisions
Entering Into Contracts
• Why a Contract?
– Education Code Section 72411(a): Every
educational administrator shall be
employed … by an appointment or contract
of up to four years in duration.
3
Entering Into a Contract
• Terms and conditions of employment are
memorialized in a written agreement
signed by the parties
• Board approval required at a regular
meeting of the board
4
Renewing a Contract
• The district and the administrator may
mutually agree to terminate existing
contract and enter into a new contract
– Current contract ends on June 30
– Contract with new terms and conditions
begins on July 1
5
Renewing a Contract
• No contractual provision can provide for
an automatic renewal of the contract if
there are automatic salary increases that
exceed a cost of living adjustment
• Board approval required at a regular
meeting of the board
6
Renewing a Contract
• Automatic renewal by operation of law
– If no notice of non-renewal is provided, the
administrator is reemployed for a term of the
same duration that was just completed
 But: the contract itself can state that it only renews
for one year.
– No statutory or contractual right to an
administrative position
7
Terminating a Contract
• Mutual agreement
• Resignation
– Terms specified in contract
– Must provide appropriate notice as specified
in contract
8
Terminating a Contract
• Non-renewal of contract
– For contracts longer than a year:
 At least 6 months notice prior to expiration of
contract; or
 A time period agreed to in the contract (e.g. by
March 15)
– For contracts less than a year, notice of nonrenewal must be given on or before March
15
9
Terminating a Contract
• Without cause
– Terms specified in contract
– Severance pay is limited to the monthly
salary owed for the remainder of the contract
– Capped at a maximum of 18 months, but no
right to have it be 18 months
10
Terminating a Contract
• For cause
– Administrators without tenure as a faculty
member may be terminated for cause
pursuant to the terms of the contract, if any
– Administrators with tenure as a faculty
member must be dismissed in accordance
with Education Code 87732
11
Retreat Rights
• No retreat rights for an administrator
dismissed for cause
• Administrator with tenure as a faculty
member who has been released without
cause may return to a faculty position
12
Retreat Rights
• Administrator without tenure as a faculty
member may become a first-year probationary
faculty member
– Termination must not be for cause
– District must have a process to evaluate whether
administrator meets minimum qualifications,
developed with Faculty Senate
– Administrator must have completed at least 2 years
of satisfactory service
– A first-year probationary position must be available
13
Common
Contractual Provisions
14
Essential Provisions
• Term/Duration
– Governs the length of the contract
– Administrator contracts may be up to 4 years
in duration
– Limitations on CalSTRS annuitants:
 $31,020 annual post-retirement earnings limit
(2011-12)
 Beginning in 2013, there is a180-day waiting
period prior to being employed regardless of the
age of the annuitant
15
Essential Provisions
• Salary
– Base salary
– COLA
– Grounds for salary increases
• Duties/Responsibilities
– Defines the job responsibilities of the
position
16
Essential Provisions
• Evaluation
– Explains the standards, timing, and process
for performance evaluations
17
Essential Provisions
• Fringe benefits
– Medical & dental insurance
– Life insurance
– Leaves
– Retirement plans
• Expense allowance/Reimbursement
18
Essential Provisions
• Termination
– Resignation, for cause, without cause, nonrenewal
19
Essential Provisions
• Applicable law
– Defines what law applies to interpret and
enforce the contract (e.g. California law)
– May define where parties may sue to
enforce the contract (e.g. Alameda County)
• Severability/Savings Clause
– If one term of the contract is invalidated by a
court, the rest of the contract is still
enforceable
20
Essential Provisions
• Complete/Entire Agreement
– Contract is a final expression of the
agreement between the parties
– No other terms or conditions exist outside
what is written in the contract
21
Other Optional Provisions
• Arbitration/Mediation Clause
• Medical Examinations
• Outside Employment/Professional
Activities
• Non-Compete Clause
• Non-Recruiting Clause
22
New Requirements
• If the following benefits are provided, the
contract must contain provisions requiring an
administrator to reimburse the district for these
costs if he/she is convicted of a crime involving
an abuse of his/her position:
– Paid leave pending an investigation
– Funds for the legal criminal defense of the
administrator
– Any cash settlement received related to the
termination of the employment contract
23
Thank you!
Mary Dowell
Partner | Los Angeles
310-981-2000 | [email protected]
www.lcwlegal.com
24