Section 53260 Of Article 3.5. Employment Contracts From California Government Code >> Division 2. >> Title 5. >> Part 1. >> Chapter 2. >> Article 3.5.
53260
. (a) All contracts of employment between an employee and a
local agency employer shall include a provision that provides that
regardless of the term of the contract, if the contract is
terminated, the maximum cash settlement that an employee may receive
shall be an amount equal to the monthly salary of the employee
multiplied by the number of months left on the unexpired term of the
contract, with the following exceptions:
(1) If the unexpired term of the contract is greater than 18
months, the maximum cash settlement shall be an amount equal to the
monthly salary of the employee multiplied by 18.
(2) In the case of a district superintendent of schools, for
contracts of employment executed on or after January 1, 2016, the
maximum cash settlement shall be an amount equal to the monthly
salary of the employee multiplied by 12.
(b) (1) Notwithstanding subdivision (a), if a local agency
employer, including an administrator appointed by the Superintendent,
terminates its contract of employment with its district
superintendent of schools, that local agency employer shall not
provide a cash or noncash settlement to its superintendent in any
amount if the local agency employer believes, and subsequently
confirms, pursuant to an independent audit, that the superintendent
has engaged in fraud, misappropriation of funds, or other illegal
fiscal practices.
(2) This subdivision applies only to a contract for employment
executed on or after January 1, 2016.
(c) The cash settlement formulas described in subdivision (a) are
maximum amounts that may be paid by a local agency employer to an
employee and not a target or example of the amount of the cash
settlement to be paid by a local agency employer to an employee in
all contract termination cases.