HOUSE BILL No. 1307
DIGEST OF INTRODUCED BILL
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)
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HOUSE BILL No. 1307
A BILL FOR AN ACT to amend the Indiana Code concerning
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
(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.