Introduced Version




Citations Affected: IC 22-2-5-4.

Synopsis: Public school compensation payment schedules. Permits a public school corporation to enter into a 12 month compensation payment schedule for work performed during a normal nine or ten month school year.

Effective: July 1, 2009.


    January 13, 2009, read first time and referred to Committee on Labor and Employment.


First Regular Session 116th General Assembly (2009)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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    A BILL FOR AN ACT to amend the Indiana Code concerning education.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 22-2-5-4; (09)IN1307.1.1. -->     SECTION 1. IC 22-2-5-4 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 4. (a) Notwithstanding section 1 of this chapter, a school corporation (as defined in IC 20-26-2-4) and an employee may agree to a wage payment arrangement. The wage payment arrangement may provide that compensation earned during the school year may be paid in equal increments over the twelve (12) month period that begins at the beginning of that school year and ends before the beginning of the next school year. Such an agreement must be:
        (1) in writing;
        (2) limited to a duration of one (1) school year; and
        (3) voluntary.
    (b) If the employment relationship is ended by either party to an agreement executed under subsection (a), all wages earned shall be due the employee on the next usual and regular day for payment of compensation, as established by the employer.
    (c) Section 2 of this chapter applies to wage payments required under any agreement executed under subsection (a) or any amount due under subsection (b).
    (d) An agreement executed under subsection (a) must be structured in such a manner that it is not considered:
        (1) a nonqualified deferred compensation plan for purposes of Section 409A of the Internal Revenue Code; or
        (2) deferred compensation for purposes of Section 457(f) of the Internal Revenue Code.