The proposed bill, titled the "State Employment Contract Regulation Act," aims to regulate public employment contracts for state employees and officers in Michigan. It establishes limitations on severance payments, prohibiting contracts that offer severance pay exceeding an amount equal to the employee's normal wages for a specified number of weeks. Additionally, the bill mandates that employment contracts cannot include clauses that prevent employees from disclosing information about legal violations, the existence of the contract, or its contents. It also requires that contracts explicitly state they represent the complete agreement between the parties involved.

Furthermore, the bill allows for exceptions where the Attorney General or legal counsel can authorize severance payments exceeding the stipulated limits if deemed necessary to protect the state's interests, particularly in mitigating litigation risks. In such cases, the full text of the employment contract must be made publicly available within a specified timeframe. The bill emphasizes transparency by requiring public bodies to disclose contracts involving severance pay, thereby enhancing accountability in public employment practices.