The proposed "State Employment Contract Regulation Act" aims to establish regulations surrounding public employment contracts for state employees and officers in Michigan. It specifically limits severance payments to an amount not exceeding the equivalent of weeks of the employee's normal wages and prohibits contracts that include nondisclosure clauses regarding workplace violations, the existence of the contract, or its contents. Additionally, the act mandates that any employment contract providing for severance pay equal to or greater than six weeks of wages must be made publicly available on the employing public body's website within 28 days of its execution.

The bill also allows for exceptions where, if deemed necessary by the Attorney General or legal counsel, severance pay exceeding the stipulated limit may be authorized to mitigate litigation risks and reduce public expenditure. In such cases, the full text of the employment contract must be submitted electronically to key legislative leaders within three days of its execution. This act applies to all employment contracts entered into, amended, extended, or renewed after its effective date.