General Provisions
Severance Pay

Background

In general, severance pay is not awarded to state employees. State agencies other than institutions of higher education must have specific statutory authority to award severance pay.

Exception for Certain Employees

As of Sept. 1, 1999, the Texas Legislature enacted laws to provide severance pay for certain employees of the Texas Medical Board, Texas Board of Nursing and the Texas Board of Social Worker Examiners under the Department of State Health Services (DSHS).

Employees of these agencies are required to report ethical or legal misconduct and harmful, dangerous or illegal activities to the Texas State Board of Medical Examiners to maintain the safety and welfare of Texas citizens.

State agencies may not suspend, discipline, discriminate against or terminate the employment of a person because they have filed a report, as described in Texas Occupational Code 301.402 (b)-(f), with the Texas State Board of Medical Examiners, if the report is made without malice.

Should an employee be wrongfully terminated or suspended in retaliation for a report, they may be entitled to severance pay in the amount equal to three months of their most recent salary.

Sources

Texas Constitution Article III, Sections 44, 51-53; Texas Attorney General Opinions H-786 (1976), JM-1142 (1990), JM-887 (1988), JM-543 (1986), JM-406 (1985), MW-592 (1982), H-535 (1975), WW-1373 (1962); Texas Occupations Code, Sections 160.003(a)(2)-(6), (b); 160.012(a), (c)(1)(B); 301.401; 301.402(b)-(c); 301.410; 301.412(2); 301.413(b), (d)(1); 505.451; and Texas Government Code, Sections 311.002 and 311.005(2).