Local Education Agencies

Plain English Breakdown

The official source material does not provide details on how existing contracts will be handled before July 1, 2025.

Rules for School Directors' Severance Pay

This bill changes how school boards can give severance pay to directors of schools when they are fired without cause.

What This Bill Does

• Limits the amount of severance pay a school board can offer if a director is terminated without cause to their annual salary at the time of termination.
• Prohibits any severance pay for a director who is terminated with cause.

Who It Names or Affects

• School boards in Tennessee
• Directors of schools in Tennessee

Terms To Know

Severance pay

Money given to an employee when they lose their job, especially if the employer is ending the employment relationship.

Cause

A reason that justifies a specific action or decision, such as terminating someone for breaking rules.

Limits and Unknowns

• The bill does not specify how it will affect existing contracts before July 1, 2025.
• It is unclear how this will impact current directors of schools who are already receiving severance pay under different terms.

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

<BillNo> <Sponsor>

HOUSE BILL 2489
By Reedy
HB2489
000024
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 49,
Chapter 2, relative to directors of schools.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-2-203(a)(13), is amended by
adding the following as a new subdivision:
(D)
(i) If a school board terminates its director of schools without cause, then
the school board may offer or provide severance pay to the terminated director of
schools; provided, that the amount of severance pay offered or provided must not
exceed the annual salary amount the director of schools was receiving at the
time of termination;
(ii) If a school board terminates its director of schools with cause, then
the school board shall not offer or provide severance pay to the terminated
director of schools;
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it, and
applies to contracts entered into or renewed on or after such date.