State Rep. Matt Maddock today voted to end the secret practice of Michigan giving huge severance payments to departing state employees. These agreements often include huge sums of taxpayer dollars and are tied to the ousted employee signing a non-disclosure agreement (NDA).

“Governor Whitmer’s administration has treated taxpayer money like a slush fund for departing insiders,” said Maddock (R-Milford). “Michigan residents should not be forced to bankroll secret severance deals designed to keep embarrassing information out of public view.”

In recent years, several Michigan department heads have abruptly left posts in the Whitmer administration with massive severance payouts. In 2021, former Michigan Department of Health and Human Services Director Robert Gordon received $155,506 in an agreement that included him signing an NDA. A year later, former Unemployment Insurance Agency Director Steve Gray resigned, also signed an NDA, and received a severance payout of around $85,000.

The leaks of these golden parachute deals have led to other revelations that state employees in both the executive and legislative branches have received bloated severance payouts tied to their signing NDAs.

House Bill 6009, sponsored by Rep. John Roth, R-Interlochen, clearly outlines new prohibitions on severance buyouts for state employees. Restrictions in the proposal include blocking severance payments entirely for state officers, elected or appointed, and restricting state employees, non-civil servants in the executive or legislative branch, from receiving a severance payout greater than 12 weeks of normal wages.

The plan also prevents severance payouts from being shrouded in secrecy, ensuring things like crimes committed in the workplace and employment contracts aren’t hidden from the public eye.

“Government works for the people, not the other way around,” Maddock said. “These backroom payouts undermine trust and shield public officials from accountability. It’s time to end the secrecy and put taxpayers first.”

The legislation now moves to the state Senate for further consideration.