AGO Opinion Topics: AUTHORITY PROVIDE SEVERANCE PAY BASED UPON ACCRUED SICK LEAVE

(1) A city of the first class, in the absence of a restriction in its charter, has the authority to adopt by ordinance a plan for granting severance pay to its employees for accrued sick leave in consideration of service to be performed by the employee after the adoption of the ordinance. (2) Same : Counties and other cities and towns, but not school districts, have the authority to adopt by ordinance or contract provisions a plan granting severance pay to their employees for accrued sick leave in consideration of services to be performed by the employee after the ordinance is adopted or contract is executed.