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Only 2 of 6 Pay Reform Bills Pass Legislature

The 2009-2010 Legislative session is officially over. Of the six bills that comprised the Legislature’s response to the City of Bell salary scandal, only two bills made it out of both the Assembly and Senate: AB 194 and AB 827. AB 194 (Limits on Pensions) was passed without any major amendments. The only change was that urgency language was added so that the law will take effect as soon as it is signed by the Governor.  For a description of what AB 194 entails, see my blog post on August 27, 2010.AB 827 (Limits on Local Employment Contracts) was substantially…

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AB 194: Limits on Pensions

AB 194 is part of a six-bill package of legislation in response to the salary scandal at the City of Bell. AB 194 would cap compensation that could be considered in calculating a public employee's pension at 125% of the Governor's current salary, which is $173,987.  (The Governor's salary was $212,179 but the Citizen's Compensation Commission voted on May 20, 2010 to reduce that salary by 18%, to $173,987, effective December 7, 2009.)  So the cap would be $217,483.75.  The cap would only apply to individuals joining a pension system on or after January 1, 2011 and the cap would be subject to an annual cost-of-living increase. …

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AB 827: Limits on Local Employment Contracts

AB 827 is part of a six-bill package of legislation in response to the salary scandal at the City of Bell. AB 827 would prohibit any employment contract for a local, unrepresented employee from including: 1) an automatic renewal provision; 2) an automatic raise in excess of a cost-of-living adjustment; or 3) an automatic compensation increase, including any increase that is linked to a third-party contract. The bill itself is a “gut and amend” of a prior bill dealing with the archival of county records. Perhaps because the bill was so quickly written, the language – although extremely short –…

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Proposed Legislation in Response to City of Bell Scandal

The Legislature has unveiled a six-bill package of legislation in response to the salary scandal involving the City of Bell. The six bills are:AB 827: Prohibits any employment contract for a local, unrepresented employee from including an evergreen provision, severance payments greater than 12 months in salary, automatic compensation increases, and automatic raises that exceed the cost of living.AB 192: Requires cities to pay for any higher pension payments that stem from their luring a municipal employee away from another city by offering exorbitant pay. AB 194: Establishes a cap on the total compensation that can be used to calculate a…

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Dismissals Not Entitled to Preclusive Effect

Grossmont Union High School District (2010) PERB Decision No. 2126E (Issued on 8/13/10)This case involved an employee who alleged that he received a negative performance evaluation and was demoted because of protected activities. Specifically, the employee alleged that the adverse actions were taken after he wrote a letter to the principal accusing the principal of violating the applicable collective bargaining agreement and because he requested union representation during a meeting with his manager. The Office of the General Counsel issued a complaint. After a formal hearing, the ALJ found no nexus between the adverse actions and the protected activities, and…

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