HB 89 Summary

• Establishes the "Employee Protection From Wrongful Termination Act" based on the Model Employment Termination Act, requiring employers to terminate employees only for "good cause" rather than at-will.

• Applies to private employers with 5 or more employees; covers employees who have worked for the employer for at least one year and 520 hours in the preceding 26 weeks.

• Defines "good cause" as either a reasonable basis related to an employee's conduct, performance, and record, or the employer's good faith exercise of business judgment including economic decisions and workforce restructuring.

• Eliminates common law rights and remedies for covered employees but preserves rights under federal/state statutes, collective bargaining agreements, and other employment contracts; excludes state agencies, political subdivisions, and municipal corporations.

• Requires arbitration through the Department of Labor for termination disputes, with remedies limited to reinstatement, backpay, severance pay (up to 30 months), and attorney's fees; prohibits compensatory and punitive damages except for retaliation cases.