LD 2054
pg. 1
LD 2054 Title Page An Act Regarding the Payment of Severance Pay Page 2 of 2
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LR 3325
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 26 MRSA §625-B, sub-§1, ¶G, as enacted by PL 1979, c. 663,
§157, is repealed.

 
Sec. 2. 26 MRSA §625-B, sub-§2, as enacted by PL 1979, c. 663, §157,
is amended to read:

 
2. Severance pay. Any employer who relocates a covered
establishment or terminates the employment of an employee in a
covered establishment shall be is liable to his employees an
affected employee for severance pay at the rate of one week's pay
for each year of employment by the employee in that
establishment. The severance pay to an eligible employees shall
be employee is in addition to any final wage payment to the
employee and shall must be paid within one regular pay period
after the employee's last full day of work, notwithstanding any
other provisions of law.

 
Sec. 3. 26 MRSA §625-B, sub-§3, as amended by PL 1999, c. 55, §1, is
further amended to read:

 
3. Mitigation of severance pay liability. There is no
liability under this section for severance pay to an eligible
employee if:

 
A. Relocation of a covered establishment or termination of
the employment of an employee in a covered establishment is
necessitated by a physical calamity;

 
B. The employee is covered by an express contract providing
for severance pay that is equal to or greater than the
severance pay required by this section;

 
C. That employee accepts employment at the new location; or

 
D. That employee has been employed by the employer for less
than 3 years.; or

 
E.__That employee is terminated by an employer for
misconduct as defined in section 1043, subsection 23 or the
employer is otherwise similarly justified in terminating an
employee.

 
Sec. 4. 26 MRSA §625-B, sub-§6, as enacted by PL 1979, c. 663, §157,
is amended to read:

 
6. Notice of director. Any person proposing to relocate or
terminate a covered establishment shall notify the director in
writing not less than 60 days prior to the relocation.


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