1. A New Paradigm for the CIO Contract Presented By: Mary Dowell

2. 2 Overview Legal Requirements Entering Into Contracts Renewing Contracts Terminating Administrator Contractual Provisions

3. 3 Entering Into Contracts Why a Contract? –Education Code Section 72411(a): Every educational administrator shall be employed … by an appointment or contract of up to four years in duration.

4. 4 Entering Into a Contract Terms and conditions of employment are memorialized in a written agreement signed by the parties Board approval required at a regular meeting of the board

5. 5 Renewing a Contract The district and the administrator may mutually agree to terminate existing contract and enter into a new contract –Current contract ends on June 30 –Contract with new terms and conditions begins on July 1

6. 6 Renewing a Contract No contractual provision can provide for an automatic renewal of the contract if there are automatic salary increases that exceed a cost of living adjustment Board approval required at a regular meeting of the board

7. 7 Renewing a Contract Automatic renewal by operation of law –If no notice of non-renewal is provided, the administrator is reemployed for a term of the same duration that was just completed But: the contract itself can state that it only renews for one year. –No statutory or contractual right to an administrative position

8. 8 Terminating a Contract Mutual agreement Resignation –Terms specified in contract –Must provide appropriate notice as specified in contract

9. 9 Terminating a Contract Non-renewal of contract –For contracts longer than a year: At least 6 months notice prior to expiration of contract; or A time period agreed to in the contract (e.g. by March 15) –For contracts less than a year, notice of non- renewal must be given on or before March 15

10. 10 Terminating a Contract Without cause –Terms specified in contract –Severance pay is limited to the monthly salary owed for the remainder of the contract –Capped at a maximum of 18 months, but no right to have it be 18 months

11. 11 Terminating a Contract For cause –Administrators without tenure as a faculty member may be terminated for cause pursuant to the terms of the contract, if any –Administrators with tenure as a faculty member must be dismissed in accordance with Education Code 87732

12. 12 Retreat Rights No retreat rights for an administrator dismissed for cause Administrator with tenure as a faculty member who has been released without cause may return to a faculty position

13. 13 Retreat Rights Administrator without tenure as a faculty member may become a first-year probationary faculty member –Termination must not be for cause –District must have a process to evaluate whether administrator meets minimum qualifications, developed with Faculty Senate –Administrator must have completed at least 2 years of satisfactory service –A first-year probationary position must be available

14. 14 Common Contractual Provisions

15. 15 Essential Provisions Term/Duration –Governs the length of the contract –Administrator contracts may be up to 4 years in duration –Limitations on CalSTRS annuitants: $31,020 annual post-retirement earnings limit (2011-12) Beginning in 2013, there is a180-day waiting period prior to being employed regardless of the age of the annuitant

16. 16 Essential Provisions Salary –Base salary –COLA –Grounds for salary increases Duties/Responsibilities –Defines the job responsibilities of the position

17. 17 Essential Provisions Evaluation –Explains the standards, timing, and process for performance evaluations

18. 18 Essential Provisions Fringe benefits –Medical & dental insurance –Life insurance –Leaves –Retirement plans Expense allowance/Reimbursement

19. 19 Essential Provisions Termination –Resignation, for cause, without cause, non- renewal

20. 20 Essential Provisions Applicable law –Defines what law applies to interpret and enforce the contract (e.g. California law) –May define where parties may sue to enforce the contract (e.g. Alameda County) Severability/Savings Clause –If one term of the contract is invalidated by a court, the rest of the contract is still enforceable

21. 21 Essential Provisions Complete/Entire Agreement –Contract is a final expression of the agreement between the parties –No other terms or conditions exist outside what is written in the contract

22. 22 Other Optional Provisions Arbitration/Mediation Clause Medical Examinations Outside Employment/Professional Activities Non-Compete Clause Non-Recruiting Clause

23. 23 New Requirements If the following benefits are provided, the contract must contain provisions requiring an administrator to reimburse the district for these costs if he/she is convicted of a crime involving an abuse of his/her position: –Paid leave pending an investigation –Funds for the legal criminal defense of the administrator –Any cash settlement received related to the termination of the employment contract

24. 24 Thank you! Mary Dowell Partner | Los Angeles 310-981-2000 | mdowell@lcwlegal.commdowell@lcwlegal.com www.lcwlegal.com