Administrative Employment and Contracts: Rights and Expectations ACCCA 2013 Annual Conference February 20, 2013 Presented By: Mary Dowell, Liebert Cassidy Whitmore John Didion, Rancho Santiago Community College District
Overview • Legal Requirements • Entering Into Contracts • Renewing Contracts • Terminating Administrator • Contractual Provisions 2
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 non- renewal 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 – Academics Only • 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 • Academic 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
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, non- renewal 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
Effect of PEPRA • Post-retirement earnings limit for STRS • 960 hour limit for PERS 24
Thank you! Mary Dowell Partner | Los Angeles Office Liebert Cassidy Whitmore 310-981-2000 | mdowell@lcwlegal.com John Didion Executive Vice Chancellor, Human Resources and Educational Services Rancho Santiago Community College District 714-480-7489 | didion_john@rsccd.edu 25
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