Governor Signs Legislation Setting Limitations on Community College Employment Contracts

On September 22, 2015, Governor Rauner signed House Bill 3593 into law as Public Act 99-0482.  As reported in our July 2015 Law Alert, this law adds a new section to The Public Community College Act (110 ILCS 805/3-65), and establishes significant limitations on community college employment contracts. The law applies to employment contracts which are entered into, amended, renewed or extended after September 22, 2015 (the effective date of the law).  A summary of the limitations and notice requirements are set forth below.

New Limitations for Employment Contracts

Public Act 99-0482 mandates the following limitations on community college employment contracts, which makes these terms non-negotiable between the community college and the (prospective or existing) employee:

1. Any severance payable under the contract may not exceed one (1) year’s worth of salary and applicable benefits;

2. The duration of an employment contract may not exceed four (4) years; and

3. Employment contracts may no longer contain automatic rollover clauses.

New Notice Requirements

1. Following No. 3 above, all employment contract renewals or extensions must be made during an open meeting of the Board of Trustees.

2. Public notice must be given of an employment contract entered into, amended, renewed, or extended after September 22, 2015.  The form of the public notice is to be determined Illinois Community College Board (ICCB), but must at least include:

a. a complete description of the action to be taken; and

b. the contract itself, including all addendums or any other documents that change an employee’s initial contract.

Significantly, and without amending the Open Meetings Act (OMA), the new notice requirements clearly expand the requirements of the OMA as to the posted agenda and intended action items.

If you have any questions or require assistance with current or future employment contracts, please feel free to contact any of the firm’s Labor and Employment or Local Government attorneys.

Catherine R. Locallo, an associate in the firm’s Chicago office prepared this Law Alert.