MI HB4199

Prohibits public employers in Michigan from paying severance pay to employees who voluntarily terminate employment, with limited exceptions for reduction-in-force plans, early retirement agreements, general merit system policies, and employer-initiated terminations.

Prohibits severance pay on contracts for services when the contractor initiates early termination, effective for contracts entered on or after April 1, 2015, but allows bonuses for early completion of deliverables.

Public employees or officers who authorize contract terms or payments in violation of this act are subject to civil fines of up to $25,000.

Attorney General or local unit of government attorneys may bring circuit court actions to enforce violations.

Fines collected are deposited into the state general fund.