SENATE BILL NO. 219
INTRODUCED BY BALYEAT, MUSGROVE
AN ACT CLARIFYING THAT A STATE EMPLOYEE WHO TERMINATES EMPLOYMENT MAY NOT RECEIVE SEVERANCE PAY, A BONUS, OR ANY OTHER TYPE OF MONETARY PAYMENT EXCEPT AS AUTHORIZED BY LAW; AMENDING SECTION 2-18-621, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 2-18-621, MCA, is amended to read:
"2-18-621. Unlawful termination -- unlawful payments. (1) It shall be is unlawful for an employer to terminate or separate an employee from his employment in an attempt to circumvent the provisions of 2-18-611, 2-18-612, and 2-18-614. Should If a question arise arises under this section subsection, it shall must be submitted to arbitration as provided in Title 27, chapter 5, as if an agreement described in 27-5-114 is in effect, unless there is a collective bargaining agreement to the contrary applicable.
(2) (a) An employee who terminates employment is only entitled to receive:
(i) payments for accumulated wages, vacation leave as provided in 2-18-617, sick leave as provided in 2-18-618, and compensatory time earned as provided in the rules or policies of the employer; and
(ii) if the termination is the result of a reduction in force, severance pay and a retraining allowance as provided for in 2-18-622.
(b) An employee who terminates employment may not receive severance pay, a bonus, or any other type of monetary payment not described in subsection (2)(a)(i) or (2)(a)(ii).
(3) Subsection (2) does not apply to:
(a) retirement benefits;
(b) a payment, settlement, award, or judgment that involves a potential or actual cause of action, legal dispute, claim, grievance, contested case, or lawsuit; or
(c) any other payment authorized by law."
Section 2. Effective date. [This act] is effective on passage and approval.
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