HR2423 SEVERANCE POLICY - TRACK CHANGES 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:
Subject: Severance Pay for Release of Claims Number:
HR2423
Maricopa County
Issue Date:
Policies and 11/03
Procedures
Revision Date:
11/07
Approved: Initiating Department:
Workforce Management and Development
I. I. PURPOSE
The purpose of this policy is to provide the framework and process for the discretionary payment
of Severance for Release of Claims (Severance) to a classified or unclassified employee in
exchange for a release of all claims signed by that employee. At the discretion of the County
Manager, Severance may be offered and paid as provided under the following circumstances: (1)
to employees affected by an involuntary Reduction in Force (RIF); or (2) to a County employee
separating from County employment in circumstances where the County Manager determines it is
necessary and appropriate to obtain a full release of claims against the County, including but not
limited to its supervisors, administrators, trustees, directors, agents, representatives, employees,
departments and special districts. In involuntary RIF situations, the Appointing Authority must
include a written proposal for the payment of severance in the RIF Justification Memorandum
required by HR2403.
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Policy Title: Policy Number: HR2423
SEVERANCE PAY Current Adoption MM-DD-YYYY
Date: (Pending)
II. 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. A. Appointing Authority: An elected official, a single administrative or executive head of a
DEPARTMENTDepartment/Special District, or the designated representative authorized to act in
this capacity.
B. B. HR Director: The Director of the Maricopa County’s Workforce Management and
Development (WM&D)County Human Resources Department, or his/her designeethe designated
representative authorized to act in this capacity.
C. 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. D. Reduction in Force (RIF): The involuntary separation of a regular employeeemployees
from classified service, or County employment as the result of an unclassified
employeeorganizational or departmental decision to eliminate positions due to one of the following
reasons: a lack of funds, or lack of work, or abolishment of position, as described in pursuant to
HR2403 Reductions in Force and Furloughs.
E. E. Release of Claims: A binding commitment given by a classified or unclassifiedan
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.
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Policy Title: Policy Number: HR2423
SEVERANCE PAY Current Adoption MM-DD-YYYY
Date: (Pending)
Subject: Severance Pay for Release of Claims Number:
HR2423
Maricopa County
Issue Date:
Policies and 11/03
Procedures
Revision Date:
11/07
F. Severance and Release Agreement: An Agreement entered into between an employee
and Maricopa County in which the County agrees to make a severance payment to the
employee in exchange for that employee’s release of all claims, known or unknown, which
that employee may have had against the County through the employee’s last day of
employment.
F. G. Severance: 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.
III. AUTHORIZATION AND ELIGIBILITY
G. As provided by Board Resolution dated November 5, 2003, Severance may be authorized
atSeverance 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
A. 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, for any employee(s)
separated from employment with Maricopa County.
1. Classified and unclassified employees, excluding initial probationary, temporary or
contract employees, may be eligible to receive Severance. Employees of the
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Policy Title: Policy Number: HR2423
SEVERANCE PAY Current Adoption MM-DD-YYYY
Date: (Pending)
judicial branch and employees covered by the Law Enforcement Officers Merit
System Rules are not eligible to receive Severance.
A. 2. As provided in this policy, where the Eligibility and Approval
1. When the payment of Severance has been approved by the County Manager, the
employee’san employee's eligibility to receive Severance is contingent upon (1) :
a. that employee’semployee's execution of a Severance and Release Agreement; and (2)
b. upon approval by the Maricopa County Board of Supervisors.
2. 3. The County Manager may authorize that Severance be paid in installments or in a lump
sum.
3. 4. Exceptions to this policy may occur with Board approval only.
4. B. 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, as
designated by the Director.
IV. PROCESS FOR SEVERANCE PAY AUTHORIZATION IN THE EVENT OF A RIF
B. A. Severance Pay in Conjunction With a RIF
When thean Appointing Authority or designee determines that an involuntary Reduction in Forcea
RIF is necessary, and that the payment of Severance (as defined in this policy) to affected
employees is appropriate, the Appointing Authority shall confer with the HR Director
regarding the anticipated Reduction in Force, in accordance with HR 2403,HR2403 and
shall submit a draft RIF Justification Memorandum to the County Manager that includes a
proposal for the potential payment of Severance.
B. Any employees to be affected by an anticipated RIF may become eligible for Severance.
However, it is not required that affected employees in a department undergoing a RIF be
offered Severance.
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Policy Title: Policy Number: HR2423
SEVERANCE PAY Current Adoption MM-DD-YYYY
Date: (Pending)
Subject: Severance Pay for Release of Claims Number:
HR2423
Maricopa County
Issue Date:
Policies and 11/03
Procedures
Revision Date:
11/07
1. C. The Appointing Authority’s severance proposal must reflect the approval of the
department’s Chief Officer or elected official at the time the RIF Justification Memorandum is
submitted to the County Manager. The severancedraft proposal must include:
a. 1. the business reason for offering Severance;
2. the total amount of Severance to be offered to each employee;
b. 3. the basis upon whichhow the amount of individual Severance iswill be calculated
(e.g., years of County service, etc.); and
c. 4. the cumulative “not to exceed” amount to be paid as Severance, assuming that
every affected employee signs the agreement;an agreement, including verification from
the Budget Office of available department funding to cover the cumulative amount.
5. In accordance with HR2403, after the anticipated date of 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 Reduction in Force; and
2. 6. a list statingof affected employees has been finalized, a summary of the nameSeverance
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: 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. D. The Severance proposals in RIF situations must list shall be verified for funding with the
Office of Management & Budget, prior to being submitted by the Appointing Authority to the
HR Director and the County Managerlegal 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. E. In those cases where the County Manager or elected official approvesSeverance
Unrelated to a RIF
1. When an Appointing Authority determines that the payment of Severance to employees
affected by a RIFseparating employee may be appropriate, the Appointing Authority will
provide the County’s Payroll divisionshall confer with the list of employees approved to
receive Severance,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 amountstotal amount of Severance to be paidoffered to each employee,
contingentthe 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 execution of the agreements.which the amount of Severance is calculated
(e.g., years of County service, etc.).
V. REQUIREMENTS FOR SEVERANCE IN NON-RIF SITUATIONS
3. In those cases whereWhen the County Manager has determined it is approved as necessary
and appropriate to paypayment of Severance to an employee separating from County
employment in a non-RIF situation, under the circumstances defined in this policy, and where
the employeeonce an employee has executed thea Severance Agreement, approval of the
agreement will then be obtained from the Director and County Counsel, and thenSeverance
Agreement shall be submitted for approval to the Board of Supervisors.
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Policy Title: Policy Number: HR2423
SEVERANCE PAY Current Adoption MM-DD-YYYY
Date: (Pending)
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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