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