This bill amends the Public School Code of 1949, specifically Section 1164, to update the terminology and provisions related to compensation agreements for school administrators in Pennsylvania. The term "compensation plans" is replaced with "compensation agreements," and the definition of "school administrator" is expanded to include principals, assistant principals, and vice principals, while removing the previous exclusion of these roles. Additionally, the bill introduces new definitions and requirements for the agreements, including a process for performance evaluations, a complaint process, and a mediation process for disputes.

Furthermore, the bill mandates that school employers must meet and discuss compensation and benefits with school administrators prior to adopting any agreements. It establishes that once an agreement is approved, it becomes binding, and the terms of any previous agreement remain in effect until a new one is ratified. The bill also outlines an appeal process for school administrators regarding performance concerns and rights specified in the agreements, ensuring they have representation during disciplinary meetings. The act is set to take effect in 60 days.