TX HB762

Caps severance pay for political subdivision employees and independent contractors at 20 weeks of compensation at their termination rate, excluding paid time off or accrued vacation leave

Prohibits severance pay when an employee or independent contractor is terminated for misconduct, defined as acts or omissions determined by the governing body to be misconduct, including any criminal conduct finding

Requires political subdivisions to post each severance agreement prominently on their website

Exempts public and teaching hospitals from these severance pay limitations

Courts are prohibited from issuing writs of execution or mandamus for judgments in termination-related lawsuits that do not comply with these severance restrictions

Takes effect September 1, 2025, and applies only to contracts entered into or actions filed on or after that date