HR2423 SEVERANCE POLICY - FINAL VERSION - 10042017 BOS AGENDA.PDF

MARICOPA COUNTY INTERNAL POLICY
Policy Number: HR2423
Policy Title:
Current Adoption MM-DD-YYYY
SEVERANCE PAY Date: (Pending)
Current MM-DD-YYYY
Implementation Date: (Pending)
Board Agenda
Approved by:
Number:
BOARD OF SUPERVISORS Original Adoption
11-2003
Date:
I. PURPOSE
This policy provides for the discretionary payment of Severance to a classified or unclassified
employee, under limited circumstances, in exchange for the employee’s Release of Claims against the
County.
II. AUTHORITY
This policy, as it applies to classified employees, refers to employees covered by the Maricopa County
Employee Merit System Resolution and Rules.
III. APPLICATION
This policy applies to all County Departments, Elected Officials and Special Districts.
IV. DEFINITIONS
A. Appointing Authority: An elected official, a single administrative or executive head of a
Department/Special District, or the designated representative authorized to act in this capacity.
B. HR Director: The Director of the Maricopa County Human Resources Department, or the
designated representative authorized to act in this capacity.
C. Maricopa County: For purposes of a Severance Agreement authorized pursuant to this policy, this
includes but is not limited to, Maricopa County, a political subdivision of the State of Arizona, and
its past, present and future supervisors, administrators, trustees, directors, officers, agents,
employees, employee benefit programs (and the trustees, administrators, fiduciaries and insurers
of such programs), departments and special districts, and all other persons acting by, through,
under or in concert with any of the persons or entities listed herein and their successors.
D. Reduction in Force (RIF): The involuntary separation of employees from County employment as
the result of an organizational or departmental decision to eliminate positions due to a lack of funds
or lack of work pursuant to HR2403 Reductions in Force and Furloughs.
E. Release of Claims: A binding commitment given by an employee in exchange for payments and
consideration described in a Severance Agreement authorized under this policy whereby the
employee, as a free and voluntary act, agrees that the payments and consideration made by the
County are in full satisfaction of any and all claims (as more fully described in the Severance
Agreement) that the employee may have against the County.
F. Severance: Payment by the County of a specific amount to an employee under the circumstances
and subject to the terms and conditions set forth in this policy.

Policy Title: Policy Number: HR2423
SEVERANCE PAY Current Adoption MM-DD-YYYY
Date: (Pending)
G. Severance and Release Agreement: An agreement entered into between an employee and
Maricopa County in which the County agrees to make a Severance payment and/or to provide a
tangible benefit to the employee in exchange for that employee's release of all claims, known or
unknown, which that employee may have against the County through the employee's last day of
employment.
V. POLICY
At the discretion of the County Manager, Severance may be offered and paid to employees affected by
a Reduction in Force (RIF) or to an eligible employee separating from County employment in
circumstances where the County Manager determines it is necessary and appropriate to obtain a
Release of Claims under the terms and conditions described in this policy.
A. Eligibility and Approval
1. When the payment of Severance has been approved by the County Manager, an employee's
eligibility to receive Severance is contingent upon:
a. that employee's execution of a Severance and Release Agreement; and
b. upon approval by the Maricopa County Board of Supervisors.
2. The County Manager may authorize that Severance be paid in installments or in a lump sum.
3. Exceptions to this policy may occur with Board approval only.
4. Without exception, any Severance and Release Agreement prepared pursuant to this policy
must be prepared in consultation with the HR Director and reviewed by legal counsel.
B. Severance Pay in Conjunction With a RIF
1. When an Appointing Authority determines that a RIF is necessary and that the payment of
Severance to affected employees is appropriate, the Appointing Authority shall confer with the
HR Director in accordance with HR2403 and shall submit a draft RIF Justification Memorandum
that includes a proposal for the potential payment of Severance. The draft proposal must
include:
a. the business reason for offering Severance;
b. how the amount of individual Severance will be calculated (e.g., years of County service,
etc.); and
c. the cumulative “not to exceed” amount to be paid as Severance, assuming that every
affected employee signs an agreement, including verification from the Budget Office of
available department funding to cover the cumulative amount.
2. In accordance with HR2403, after the final RIF Justification Memorandum is approved, if a
Rating Matrix is required, employees will be given an opportunity to review their Rating Matrix
to confirm their scores, and once the list of affected employees has been finalized, a
summary of the Severance list shall be prepared to include items in Section V.B.1 above and
the names of each employee to be offered Severance and that employee's: market range job
title; working title; budgeted pay rate; work unit; position control number; hire date; and the
total amount to be paid to the employee.
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Policy Title: Policy Number: HR2423
SEVERANCE PAY Current Adoption MM-DD-YYYY
Date: (Pending)
3. The Severance list shall be submitted by the Appointing Authority to the HR Director and
legal counsel for the preparation of appropriate Severance Agreements. No employee shall
be paid a Severance in connection with a RIF without first executing a Severance Agreement.
C. Severance Unrelated to a RIF
1. When an Appointing Authority determines that the payment of Severance to a separating
employee may be appropriate, the Appointing Authority shall confer with the HR Director and
legal counsel regarding the potential payment of Severance.
2. A Severance proposal must include:
a. the business reason for offering Severance;
b. the total amount of Severance to be offered to the employee, including payment of
COBRA continuation premiums, if applicable, and including verification from the Budget
Office of available department funding to cover the Severance amount; and
c. the basis upon which the amount of Severance is calculated (e.g., years of County
service, etc.).
3. When the County Manager has approved as necessary and appropriate payment of
Severance to an employee separating from County employment in a non-RIF situation, once
an employee has executed a Severance Agreement, the Severance Agreement shall be
submitted for approval to the Board of Supervisors.
Revision History
Version Revision Date Description of Revision
1 November 2003 Initial version
2 December 2007
3 MM-DD-YYYY Clarified language regarding what types of employees are eligible to receive
Severance, with the approval of the County Manager; Clarified the
Application Section so this policy applies only to appointed departments,
elected offices and special districts; Aligned language in Section V.B to be
consistent with changes made to HR2403
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