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Council weighs 20-week severance, vesting schedule and attorney-fees language in manager contract
Summary
At a workshop on Aug. 6, Juno Beach councilors discussed standard 20-week severance, whether severance should satisfy all claims, moving from immediate vesting to tiered vesting, and changing an attorney-fees clause so each party bears its own costs.
Councilors spent significant time on sections dealing with termination, severance and retirement vesting.
The town attorney told the council that 20 weeks of severance is common in manager employment agreements and is intended to satisfy (and be the consideration for) a release of any claims: "We do generally do see 20 weeks as pretty standard in these employment agreements," he said. Council members questioned whether accrued reimbursements and paid-leave payouts would also be covered and asked staff to add clear language referencing the employee handbook so payroll can implement terms consistently.
Separately, members objected to immediate full vesting of the manager's retirement match and proposed a tiered vesting schedule (quarterly vesting with full vesting after 12 or 18 months) to avoid a scenario in which a short tenure yields full employer contributions immediately. Staff agreed to confirm operational feasibility for monthly/quarterly vesting schedules.
Council also reviewed the contractual attorney's-fee provision: the draft treated the nonprevailing party as responsible for the other side's fees. Members preferred a provision that each side bears its own fees to avoid creating a litigation incentive and large town exposure, and asked the town attorney to revise accordingly.
No final votes were taken; the attorney will circulate a revised draft with clarified language on severance, paid-leave payouts consistent with the handbook, vesting mechanics and the attorney-fees approach before any offer is transmitted.
