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Board discusses keeping liquidated‑damages clause in educator contracts, staff to return cost analysis
Summary
Staff recommended retaining liquidated‑damages language in educator and therapist contracts and will return in coming months with data on defensible dollar amounts after reviewing other districts and local costs.
Matt, a staff member, told the board that Lakeland School has a liquidated‑damages clause in educator contracts that has not been enforced during his tenure and that two educators resigned during the school year, creating hardship for the school. He recommended keeping the clause in contracts for the 2026–27 school year but returning to the board with proposed dollar amounts and supporting cost data before that time.
Matt said preliminary outreach to other Wisconsin and Walworth County districts found a wide range of practices: some districts have no clause, some list amounts near $500, others $2,500, and one district reported a figure as high as $15,000. He said the legal standard requires the amount to reflect reasonable compensation for damages, not a punitive penalty, and staff will gather local cost data during the hiring season to justify any proposed amount.
Board members asked for clarity on the basis for any figure and whether the countywide HR structure absorbs replacement costs. Members also emphasized the need for waiver language for special circumstances; Matt and other board members specifically cited illness as an example where management should be able to waive liquidated damages. No motion or vote was taken; staff said they will return with a proposed clause and supporting data for board consideration prior to distribution of 2026–27 contracts.
