What PA law says about administrator severance and what it could mean to Central Bucks

A change in the Pennsylvania School Code meant to prevent excessive severance for outgoing top administrators could present challenges for the Central Bucks School District if it seeks to invalidate its former superintendent’s six-figure package.

CBSD Solicitor David Conn and board President Karen Smith have not provided a public update on the board investigation into whether a more than $700,000 severance agreement given Abram Lucabaugh by a lame-duck school board last year is legally binding.

But the legal review  the new Democratic-majority board authorized in December is moving forward, Smith said.

What is next for Abe Lucabaugh? Berks County school district eyes former CBSD superintendent Abe Lucabaugh for interim job

If the district takes the matter to court, it would be left to a judge to interpret if the severance package was “consistent” with the intent of the change in the law, according to Jeffrey Sultanik, who heads the Education Law Group at Fox Rothchild LLP

“This might be the case where a challenge would be in order,” Sultanik added. “I think the severance package was so large and the agreement so convoluted that a court might take a very stringent view of the statute.”

Here is what the 2012 change to the law says about outgoing top administrator severances, and what it means for school districts.

What does the 2012 update to PA law say about superintendent severance?

If a superintendent or assistant superintendent has two or more years left on their employment contract, the severance cannot exceed the equivalent of one year's compensation and benefits.

Lucabaugh had three years left on his contract when he resigned and then immediately was rehired under a new five-year contract in July 2023. His latest deal had more than four years left.

The employment contract must specify the termination, buyout and severance provisions, including all post employment compensation and the period of time in which the compensation will be provided. School districts are prohibited from negotiating or changing the severance package after the fact.

The change imposes limits on the transfer of unused sick leave from previous employment to not more than 30 days for district superintendents or assistant district superintendents who have no prior experience in those roles.

Imposes limits on the compensation for unused sick leave in employment contracts for superintendents or assistant district superintendents with no prior experience in those roles.

How is the PA School Code vague about limits on top administrator severance agreements?

The new language has gray areas and no case law exists for how it should be interpreted, according to Sultanik, who represents school districts across Pennsylvania

The law does not spell out what is considered previous employment or prior experience in the top administrator positions. It also does not define what is included in a year of compensation.

Lucabaugh had not previously worked as a superintendent before 2021, but he had been employed in the Central Bucks School District for more than a decade.

The language addressing unused sick leave is unclear if the sick leave compensation limits apply to individuals promoted internally like Lucabaugh, who may have unused sick time accumulated over many years.

More on severance for Abe Lucabaugh What work did ex-Central Bucks superintendent do for $1,000 a day? We asked for records

What did Lucabaugh’s employment contract say about his severance?

His most recent contract approved in 2023 included terms for early termination by “mutual consent,” which is how the previous board described his departure last November.

Under those terms the district would pay Lucabaugh the “aggregate compensation, salary and benefits” he earned, accrued and/or was entitled, “plus any applicable post-employment and retirement benefits provided for in this Agreement and any additional amount mutually agreed upon by the Board and District Superintendent.”

What did Lucabaugh get as severance?

The agreement included a full year of salary under the new contract and benefits including unused vacation. The district agreed to pay his health insurance for him and his dependents until the end of the 2023-24 school year.

He received a $50,000 settlement to resolve any “potential issues or claims” involving his employment, specifically  allegations from Lucabaugh that he experienced harassment and “an environment of incivility and hostility” that interfered with his ability to do his job.

Lucabaugh was also paid an additional $10,000 as a district consultant for two weeks, under a separate agreement the board approved along with the severance. The consultant agreement did not outline what duties or responsibilities Lucabaugh was required to perform.

Language involving the settlement or the consulting position were not specifically included in his 2023 employment contract.

He was also paid $265,327 for 219 unused sick days, an amount that accounted for nearly one third of his total severance package.  The daily rate used for the payout was roughly $1,200, the per diem for Lucabaugh, under the contract.

What is the potential difference under the 2012 School Code update in unused sick leave pay for Lucabaugh

It's substantial. Under the School Code, the compensation is limited to the maximum allowed for unused sick leave under the school district's administrator compensation plan in place at the time of the contract for top administrators with no previous experience in the roles.

The Central Bucks School District plan in place last year had no limit on unused sick days, but  limited compensation to $15 a day, which works out to $3,285 for 219 days.

Reporter Jo Ciavaglia can be reached at [email protected]

This article originally appeared on Bucks County Courier Times: Central Bucks continues review of ex-superintendent severance