MI HB4141

Prohibits public employers in Michigan from paying severance to employees who voluntarily terminate employment, except under reduction-in-force plans, early retirement agreements, general merit system policies, or when the employer initiates termination without cause.

Bars public employers from paying severance on service contracts when the contractor initiates early termination, effective for contracts entered on or after April 1, 2014, but allows bonuses for early completion of contracts for deliverables.

Defines "severance pay" as compensation paid upon termination of employment beyond wages earned or standard retirement benefits.

Establishes civil fines of up to $25,000 for public employees or officers who authorize contract terms or payments violating this act, enforceable by the Attorney General or local government attorney in circuit court.

Directs civil fines collected to be submitted to the state treasurer for deposit into the state general fund.