INTERIM POLICY ON SEPARATION AGREEMENTS AND SETTLEMENT OF EMPLOYEE CLAIMS
Approved January 17, 2006
Amended May 18, 2006

All separation or settlement agreements in non-litigated employment matters with individuals whose compensation requires approval of The Regents shall be submitted to the Board of Regents for approval, regardless of the amount of consideration. In addition, all the separation or settlement agreements in non-litigated employment matters involving consideration of $100,000 or more shall be submitted to the Board of Regents for approval.

Separation or settlement agreements in non-litigated employment matters, involving consideration of less than $100,000, shall be approved by the President. The President's approval authority may be delegated to Chancellors and Department of Energy Laboratory Directors for campus and Department of Energy Laboratory employees, respectively. If the President determines that emergency circumstances require approval of a separation or settlement agreement in a non-litigated employment matter, involving consideration between $100,000 and $200,000, the Chairman of the Board and the Chair of the Special Committee on Compensation may approve such an agreement as an interim action.

Prior to submission for approval by the Board of Regents or the President, all separation and settlement agreements in non-litigated employment matters shall be submitted to the General Counsel for review and comment. All such agreements shall include a release approved by the General Counsel.

The Regents shall receive an annual report of all separation and settlement agreements in non-litigated employment matters involving consideration of between $50,000 and $100,000. "Consideration" as used in this Policy is defined as a monetary commitment on the part of the University, whether in the form of a lump sum cash payment, or compensation for services for a specified term, or individually-negotiated payments for benefits (e.g., COBRA); it excludes payments for salary and benefits previously earned by the employee (e.g., earned vacation leave) or continued employment on the same terms as existed prior to the agreement.

With regard to faculty members with tenure or security of employment, in the event that a faculty member's resignation and severance compensation is deemed by the President to be in the best interests of the University, pursuant to Standing Order 103.7, any resulting separation or settlement agreement shall be subject to this policy, in the case of non-litigated matters, and to the Policy on Settlement of Litigation and Non-Employee Claims, in the case of litigated matters.