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Employer Law Blog

We address issues, cases and matters of statutory and regulatory compliance of employment law that can impact a business' growth and profitability.

Employer Law Blog
August 21, 2018

Illinois Governor Signs New Severance Law, Limiting Public Employee Severance Options

The Government Severance Pay Act (P.A. 100-895) has implications of severely limiting the ability of public employers to negotiate severance packages and reduce litigation risks. The new law, which was signed on August 14, 2018, by the Governor and which is effective January 1, 2019, requires that any covered unit of government that enters into or renews a contract or employment agreement must include the provisions in the contract which restrict severance pay to no more than 20 weeks of compensation and restrict the availability of severance payment at all if the employee is terminated for “misconduct.” 

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