Florida/Georgia Personal Injury & Workers Compensation

...BETWEEN FORT MYERS BEACH FIRE CONTROL DISTRICT AND DARREN WHITE. The Fort Myers Beach Fire Control District Board of Commissioners has voted not 2The year before the parties negotiated the agreement, the legislature amended section 215.425(4)(a), Florida Statutes (2011), to limit severance pay for local government employees to twenty weeks. Ch. 2011-143, § 1, Laws of Fla. A severance provision that violates section 215.425 is illegal and void....

QUESTIONS: 1. Does a teacher's salary contract providing for a salary increase which is entered into through collective bargaining subsequent to the beginning of the salary year represent a claim for extra compensation prohibited by s. 215.425 , F.S.? 2. Are teachers' salary contracts entered into subsequent to the start of the school year in any way affected by s. 215.425 , F.S.? 3....

...or judicial clarification, a teacher's salary contract providing for a salary increase which is entered into through collective bargaining subsequent to the beginning of the salary year does not represent a claim for extra compensation prohibited by s. 215.425 , F.S....

...Therefore, subsequent salary adjustments or supplemental payments made after a collectively bargained agreement is approved and ratified, and which are made pursuant to and in performance of said agreement, would not appear to represent "extra compensation" prohibited by s. 215.425 . After extensive research, I am unable to find any previous opinion rendered by this office or judicial decision which directly addresses the questions which you have posed, since your questions are determined by the relationship existing between s. 215.425 , F.S., and Part II, Ch. 447 , F.S. (1974 Supp.), commonly known as the Public Employees Relations Act, which was adopted by the 1974 Legislature and became effective on December 16, 1974. Section 215.425 , F.S., provides that: No extra compensation shall be made to any officer, agent, employee, or contractor after the service shall have been rendered, or the contract made; nor shall any money be appropriated or paid on any claim, the...

...allow the ratification of a bargaining agreement to be completed and the appropriation to be requested after the normal budget deadlines or the commencement of the fiscal year. See s. 447.309 (2) and (4), F.S. (1974 Supp.). It is further clear that s. 215.425 , F.S., must be construed in relation to and in harmony with the Public Employees Relations Act and the apparent intent of that act to provide a means by which meaningful collective bargaining negotiations can be conducted and the results of such negotiations effectuated through an approved and ratified agreement....

...get year. It should be noted that this type of supplemental compensation paid pursuant to a collectively bargained agreement under Part II, Ch. 447 , F.S. (1974 Supp.), does not appear to be the type of prohibited "extra compensation" referred to in s. 215.425 , F.S....

...question refers are to be made pursuant to, and as a result of, said collectively bargained agreement, it does not appear that said salary adjustment or supplemental payment falls within the prohibited category of "extra compensation" referred to in s. 215.425 , F.S....

...s adopted in accordance with that agreement. Thus, they were simply performing their services in accordance with the old salary schedule adopted for the previous year and without any binding contract applicable to the new school year. The purpose of s. 215.425 , supra, (prohibiting extra compensation for work already performed) is to carry out the basic and fundamental principle that public funds may be used only for a public purpose, and it is contrary to this policy to use public funds to give...

...e incorporated in the salary schedules and teachers' contracts for the full year. Obviously, however, this cannot be done in every case. Therefore, pending legislative or judicial clarification, it seems that it would not be unreasonable to construe s. 215.425 , supra, in light of the apparent purpose and intent of the collective-bargaining act to negotiate reasonable wages for the salary year....

Mr. George T. Reeves Madison County District School Board Attorney Post Office Drawer 652 Madison, Florida 32341 Dear Mr. Reeves: On behalf of the Madison County District School Board, you ask substantially the following question: Does section 215.425 , Florida Statutes, prohibit a school board from adopting a contract that seeks to ratify previous payments for legal services that were not authorized under the original contract but were based on an unwritten understanding between t...

...The school board therefore subsequently adopted a new contract on June 3, 2003, permitting such payments and stating its intent that such contract be applied to the 2001-2002 fiscal year. The school board, however, has been told by the Auditor General that this would be a retroactive contract and thus prohibited by section 215.425 , Florida Statutes....

...the actual contract terms as understood and agreed between the parties on the above date, and which should have been memorialized in writing. The BOARD and ATTORNEY recognize that this effective date may involve certain provisions of law, including Section 215.425 , Florida Statutes . . . ." While this office recognizes that school boards possess home rule powers, the exercise of such authority must be consistent with the provisions of state law. 1 Section 215.425 , Florida Statutes, provides: "No extra compensation shall be made to any officer, agent, employee, or contractor after the service has been rendered or the contract made; nor shall any money be appropriated or paid on any claim the s...

...compensation for work which has already been performed for an agreed upon wage." 3 Therefore, the payment of retroactive compensation, lump sum allowances or other forms of compensation not provided for by law or contract is generally prohibited by section 215.425 , Florida Statutes....

...which appears to have occurred on June 3, 2003. Accordingly, the subsequent adoption of a contract that sought to ratify previous payments for legal services that were not authorized under the original contract would, in my opinion, be prohibited by section 215.425 , Florida Statutes....

...es at variance with legislation); Op. Att'y Gen. Fla. 83-72 (1983) (in the case of a direct conflict between a state statute and a rule, policy or other form of legislative action taken by a district school board, the state statute would prevail). 2 Section 215.425 , Fla....

trustee to manage such a fund. Question Three Section 215.425, Florida Statutes, provides in part that "[n]o

...West Melbourne City Attorney 1803 Airport Boulevard Melbourne, Florida 32901 Dear Mr. Bohne: On behalf of the City of West Melbourne, you ask substantially the following question: May the City of West Melbourne adopt a policy that provides a hiring bonus to newly hired employees without violating section 215.425 or section 166.021 , Florida Statutes? Section 215.425 , Florida Statutes, provides: "No extra compensation shall be made to any officer, agent, employee, or contractor after the service has been rendered or the contract made; nor shall any money be appropriated or paid on any claim the s...

...resolutions of governing boards of special districts . . . ." 1 Extra compensation generally refers to an additional payment for services performed or compensation over and above that fixed by contract or law when the services are rendered. 2 Thus, section 215.425 , Florida Statutes, prohibits extra compensation after the services have been rendered....

...given after service has been performed, not to compensation earned during service. Therefore, the payment of retroactive compensation, lump sum allowances, or other forms of compensation not provided for by law or contract is generally prohibited by section 215.425 , Florida Statutes....

...3 Thus, for example, this office stated in Attorney General Opinion 91-51 that the payment of a bonus to employees of the tax collector's office for services they have already performed and been compensated for would constitute "extra compensation," which is prohibited by section 215.425 in the absence of a preexisting employment contract that includes a provision making this payment a part of the salary for the position. In 1992, the Legislature amended section 215.425 , Florida Statutes, to authorize both counties and municipalities to adopt extra compensation programs to reward outstanding employees. 4 In the same act, the Legislature amended section 166.021 , Florida Statutes, to provide in subsection (7): "Notwithstanding the prohibition against extra compensation set forth in s. 215.425 , the governing body of a municipality may provide for an extra compensation program, including a lump-sum bonus payment program, to reward outstanding employees whose performance exceeds standards, if the program provides that a bonus pay...

...If such a policy is adopted prior to the hiring of the officer or employee, no extra compensation is being paid after the service has been rendered or the contract made; rather, it is a part of the offer of employment. 6 Thus, the provisions of sections 215.425 and 166.021 , Florida Statutes, do not appear to be implicated....

...There are no constitutional or legislative provisions fixing salaries for municipal officers or employees. 7 Therefore, such salaries may be fixed as provided in the city's enabling legislation or charter. While a municipality is subject to the provisions of sections 215.425 and 166.021 (7), Florida Statutes, such provisions do not appear to apply to the adoption of a policy that authorizes a hiring bonus to newly hired employees....

...In adopting such a policy, however, the governing body of the municipality must determine that such expenditures satisfy a municipal purpose. 8 Accordingly, I am of the opinion that the City of West Melbourne may adopt a policy that provides a hiring bonus without violating section 215.425 or section 166.021 , Florida Statutes, provided the city commission determines that such an expenditure of municipal funds would serve a municipal purpose. Sincerely, Charlie Crist Attorney General CC/tjw 1 Section 215.425 , Fla....

Rafael E. Suarez-Rivas City Attorney City of Miramar QUESTION: Does the subsequent payment by the city to a retired employee of the monetary equivalent of his unused sick leave in excess of 120 days violate s. 215.425 , F.S., when city policy authorizes, and the employee at the time of his retirement received, reimbursement for 120 days of unused sick leave only? SUMMARY: The subsequent payment by the city commission to a retired employee of the monetar...

...his unused sick leave in excess of 120 days when the employee was compensated at the time of retirement in accordance with the city system authorizing reimbursement only for 120 days of sick leave would constitute extra compensation in violation of s. 215.425 , F.S....

...ivalent to the value of his unused sick leave in excess of 120 days. The payment for sick leave in excess of 120 days would appear to be limited only to the particular employee and would not be a revision of the city's policies or retirement plan. 1 Section 215.425 , F.S., provides in pertinent part that "[n]o extra compensation shall be made to any officer, agent, employee, or contractor after the service has been rendered." 2 The purpose of this provision is to carry out a basic and fundamental principle that public funds may be used only for a public purpose....

...It is contrary to this policy to use public funds to award extra compensation for work which has already been performed for an agreed upon wage . 3 Thus, retroactive extra compensation, lump sum allowances or other forms of compensation not provided by law or contract are prohibited by s. 215.425 , F.S. Extra compensation generally refers to an additional payment for services performed or compensation over and above that fixed by contract or by law when the services are rendered. 4 In considering the applicability of s. 215.425 , F.S., to municipalities, this office has stated that a city may not expend public funds to reimburse retired city employees expending personal monies to purchase additional past service credit which the city elected not to provide when it had an opportunity to do so since such action would constitute extra compensation in violation of s. 215.425 , F.S....

...He has received the agreed upon wage for services rendered. To subsequently authorize an additional payment by the city over and above that permitted under the city's existing program would, in my opinion, constitute the payment of extra compensation contrary to s. 215.425 , F.S....

...RAB/tjw 1 Retirement and pension rights and public employer contributions toward retirement benefits are considered to be a part of an employee's compensation. See , City of Hialeah v. Willey, 189 So.2d 194 (3 D.C.A. Fla., 1966); 67 C.J.S. Officers ss. 236 and 245. 2 Section 215.425 , F.S., formerly s....

...thorized nor authorize what the Legislature has forbidden). Counties and district school boards have also been granted home rule powers. This office has also considered these local governmental entities to be subject to the restrictions contained in s. 215.425 , F.S....

...vices already performed at an agreed upon wage); and AGO 82-28 (retroactive payment to a vocational teacher for eight years of prior vocational work related experience has been considered by this office to constitute extra compensation prohibited by s. 215.425 , F.S.)....

...7 Compare , Green v. Galvin, 114 So.2d 187 (1 D.C.A. Fla., 1959), holding that the payment to the administratrix of the estate of a deceased public employee of the value of his accrued annual leave did not violate s. 11, Art. XVI, State Const. 1885 [now, s. 215.425 , F.S.]....

constitute extra compensation in violation of section 215.425, Florida Statutes, it does not appear to be

light of section 215.425, Florida Statutes, and if so, under what conditions? Section 215.425, Florida

already receiving benefits under the plan. Section 215.425, F.S., as amended by Ch. 92-90, Laws of Florida

RETROACTIVELY TO THE BEGINNING OF THE FISCAL YEAR? Section 215.425, F.S. (formerly s 11, Art. XVI, State Const

...f law relating to such schedules are met. Subsections (4) and (5) of Rule 6A-1.52, F.A.C., provide that: (4) No extra compensation shall be made to any employee of the board after service shall have been rendered, or the contract made as provided by section 215.425 , Florida Statutes....

...ary schedule. When it is determined that an incorrect amount has been paid the differences shall be adjusted between the board and the employee to the end that each employee shall receive the amount to which he is entitled under the salary schedule. Section 215.425 , F.S., provides in pertinent part that "[n]o extra compensation shall be made to any officer, agent, employee, or contractor after the service has been rendered or the contract made. . . ." Section 215.425 , F.S., formerly s....

...See, AGO's 85-57 (in the absence of a collective bargaining agreement entered into prior to performance of such services, retroactive payment at masters degree salary level to teachers receiving such degrees at end of fiscal year for that year's teaching services constitutes "extra compensation" and is prohibited by s. 215.425 , F.S.); 82-28 (retroactive payment to a vocational teacher for 8 years of prior vocational work-related experience constitutes "extra compensation" prohibited by s. 215.425 , F.S., and thus the district school board is unauthorized to make such a retroactive salary payment to the teacher); 81-98 (municipality may not legally expend public funds to reimburse employees of the city who have expended personal mon...

...city elected not to provide when it had the opportunity to do so, because such action would constitute extra compensation or a lump sum allowance not provided for by law or contract and granted after the rendition of services which is prohibited by s. 215.425 , F.S.). Thus, the payment of retroactive compensation, lump sum allowances or other forms of compensation not provided for by law or contract is prohibited by s. 215.425 , F.S. A limited exception to this general prohibition is provided in s. 215.425 stating that a district school board, when adopting salary schedules for a fiscal year "may apply the schedule for payment of all services rendered subsequent to July 1 of that fiscal year." The situation under consideration herein does no...

...such payments, retroactive payments at the level of a certified teacher salary to a substitute or emergency teacher who receives his or her certificate following the commencement of such teaching duties constitutes "extra compensation" prohibited by s. 215.425 , F.S., and thus, the School Board of Hernando County is unauthorized to make such retroactive payment to a substitute teacher....

retroactive payments to the teachers in question. Section 215.425, in pertinent part, provides: No extra

related, they will be addressed together. Section 215.425, F.S., provides in part that: No extra

BOOTH, Judge. This cause is before us on appeal from the order below granting Appellees’ motions for summary judgment. Appellant contends that the trial court erred in holding that his retirement contract was rendered unenforceable by section 215.425, Florida Statutes (1991), a statute that provides, in pertinent part, that “[n]o extra compensation shall be made to any officer, agent, employee, or contractor after the service has been rendered or the contract made....” Under t...

...Frank J. Rooney, Inc., 654 So.2d 911, 914 (Fla.1995). In this case, Appellant was still rendering services on February 4, 1991, when the parties executed the retirement contract providing additional retirement income. Thus, the contract did not violate section 215.425. See Op.Att’y Gen.Fla. 97-21 (1997) (stating that section 215.425 does not preclude “professional transition leave” with pay and benefits for one year as part of an “alteration [of] the current pension plan to provide an early retirement option to current employees who are not receiving benefi...

...than would ordinarily be provided should be upheld as an “important tool in allowing a municipality some latitude in making personnel decisions .. .”)• We hold, therefore, that in the instant case the retirement contract is not in violation of section 215.425....

...Accordingly, the summary judgment entered below is REVERSED in part and AFFIRMED in part, and the case is REMANDED for proceedings consistent herewith. JOANOS and VAN NORTWICK, JJ., concur. . The Attorney General also opined in 97-21 that lump-sum payments violated section 215.425 in the absence of a statute, collective agreement, personnel policy, or regulation providing for such payments. Op.Att'y Gen.Fla. 97-21 (1997). This part of the opinion does not render Appellant’s retirement agreement unlawful under section 215.425 because the additional portion of Appellant's increased compensation is not provided in a lump-sum; and because Appellant, as a department head in the municipal government, had the right to enter into an individual employment agreemen...

...Thus, the portion of Attorney General Opinion 97-21 regarding lump-sum payments does not render Appellant's contract unlawful. . Attorney General opinions relied on by Appel-lee City, who cited them for the proposition that added retirement benefits provided when a beneficiary is no longer rendering services violates section 215.425, are distinguishable from the instant case....

...The opinions denying benefits all involved beneficiaries who were provided extra compensation after they had already retired under their previous agreements. See Op.Att’y Gen.Fla. 92-49 (1992) (finding that cost of living adjustment provided to beneficiary already retired violated section 215.425); Op.Att’y Gen.Fla. 91-37 (1991) (finding that providing retiree, who was already retired and receiving agreed benefits, with monetary value of leave above 120 hours, contrary to city system of compensating retiring employees only up to 120 hours, violated section 215.425); Op.Att'y Gen.Fla. 89-53 (1989) (finding that purchase of annuity after beneficiary retired constituted "extra compensation” that was contrary to section 215.425)....

constitute extra compensation contrary to section 215.425, Florida Statutes The First District Court

elected officials or full-time employees. Section 215.425, Florida Statutes, provides in pertinent part:

...e previous six months; 3) an employee is required to refund to the district the pro-rata portion of the lump sum payment that is not earned in the event of a termination of employment for any reason during the six month period following the payment. Section 215.425 , F.S., provides in pertinent part that "[n]o extra compensation shall be made to any officer, agent, employee, or contractor after the service has been rendered[.]" 4 Extra compensation generally refers to an additional payment for s...

...5 The purpose of this provision is to implement a basic and fundamental principle, included in Florida's Constitution, 6 that public funds may be used only for a public purpose. Thus, retroactive extra compensation, lump sum allowances or other forms of compensation not provided by law or contract are prohibited by s. 215.425 , F.S., 7 in the absence of a statutory exemption or specific authorization for such payments....

...programs to reward outstanding employees. 8 Chapter 92-90, Laws of Florida, added the following provision, as s. 125.01 (1)(bb), F.S. (1992 Supp.), which authorizes a county, [n]otwithstanding the prohibition against extra compensation set forth in s. 215.425 , [to] provide for an extra compensation program, including a lump-sum bonus payment program, to reward outstanding employees whose performance exceeds standards, if the program provides that a bonus payment may not be included in an employee's regular base rate of pay and may not be carried forward in subsequent years. Thus, the statute authorizes a plan very similar to the one you have maintained since 1984. 9 With the adoption of these exemptions to s. 215.425 , F.S., the Legislature has recognized such employee bonuses as an innovation which serves the public interest....

...icts. In the absence of a specific provision for the district to adopt such a plan, such an authorization for special districts may not be implied. 10 You may wish to work with your local legislative representatives to develop amendatory language to s. 215.425 , F.S., which would provide the necessary authority for special districts to make such payments....

...thorized to include a lump sum bonus payment provision in its employment contracts. Sincerely, Robert A. Butterworth Attorney General RAB/tgk 1 See, ss. 373.0698 and 373.073 (1)(b)4., F.S. 2 Section 373.079 (4)(a), F.S. 3 Section 373.083 (1), F.S. 4 Section 215.425 , F.S., formerly s....

accrual of leave and the payment of such leave. Section 215.425, F.S., prohibits extra compensation being made

"unit of government" as that phrase is used in section 215.425, Florida Statutes, as amended by Chapter 2011-143

...r the unclaimed compensation in question is available for services performed by board members during the current fiscal year if funds for that purpose have been budgeted and remain unspent at the time a board member's application has been processed. Section 215.425 , F.S., provides: No extra compensation shall be made to any officer, agent, employee, or contractor after the service shall have been rendered, or the contract made; nor shall any money be appropriated or paid on any claim, the subje...

...l passed by [a majority] of the members elected to each house of the legislature. It is clear that any application for retroactive compensation for services rendered by board members prior to the instant fiscal year must be by claim bill pursuant to s. 215.425 , id....

and have been compensated for would violate section 215.425, Florida Statutes, unless there is a preexisting

...Lustgarten: You ask on behalf of the Mayor and the City Commission of the City of Miramar substantially the following question: Does the establishment of an annuity by the city commission for a retired city employee who is currently receiving pension benefits from the existing city pension plan violate s. 215.425 , F.S.? In sum, I am of the opinion that: The establishment of an annuity by the city commission for a retired city employee who is currently receiving pension benefits under the existing city pension plan would violate the provisions of s. 215.425 , F.S., which prohibits extra compensation for work already performed....

...In recognition of the employee's lengthy service to the city, the city commission is interested in creating an annuity which would increase the employee's benefits equal to the benefits she would have received had she still been in the city's employ on the date of the increase in 1988. Section 215.425 , F.S., provides in part: No extra compensation shall be made to any officer, agent, employee, or contractor after the service has been rendered or the contract made; nor shall any money be appropriated or paid on any claim the subjec...

...t to previously established salary schedules. 5 Similarly, this office concluded in AGO 82-28 that the retroactive payment to a vocational teacher for 8 years of prior vocational work-related experience constitutes "extra compensation" prohibited by s. 215.425 , F.S. 6 Thus, retroactive extra compensation, lump sum allowances or other forms of compensation not provided for by law or contract are prohibited by s. 215.425 , F.S....

...es at an agreed upon wage. To subsequently authorize the purchase of an annuity by the city in recognition of those services for which the employee has been compensated, would, in my opinion, constitute the payment of extra compensation, contrary to s. 215.425 F.S. 8 Accordingly, I am of the opinion that the establishment of an annuity by the city commission for a retired city employee who is currently receiving pension benefits under the existing city pension plan would violate the provisions of s. 215.425 , F.S., which prohibits extra compensation for work already performed. Sincerely, Robert A. Butterworth Attorney General RAB/tjw 1 Section 215.425 , F.S., was formerly s....

...credit to aid any private corporation, association, partnership or person. 5 Attorney General Opinion 86-53. And see, AGO 85-57 stating that in the absence of a collective bargaining agreement entered into prior to the performance of such services, s. 215.425 , F.S., prohibited a school board from retroactively paying at a masters degree salary teachers who received such degrees at the end of the fiscal year for that year's teaching services....

...6 Cf., AGO 81-98 (municipality may not legally expend public funds to reimburse municipal employees who have expended personal monies to purchase additional past service credit in order to obtain full retirement benefits which city elected not to provide when it had an opportunity to do so, as such action would violate s. 215.425 , F.S.)....

...state retirement system and the monies contributed by the county to such system on the attorney's behalf had been returned, the payment of such funds to the attorney's private retirement system would not constitute "extra compensation" prohibited by s. 215.425 , F.S., provided that the amount paid over is equal to that which was contributed to the state retirement plan....

...The subsequent determination by the Division of Retirement that the attorney is not eligible to participate in the state retirement plan would not appear to convert or cause such contributions to be considered "extra compensation" within the meaning of s. 215.425 , F.S.

...rification of her past work experience, became entitled under the school board's policy and the terms of the collective bargaining agreement to receive credit for her past experience. She was at the time advanced eight levels on the salary schedule. Section 215.425 , F.S., provides in pertinent part that `[n]o extra compensation shall be made to any officer, agent, employee, or contractor after the service shall have been rendered or the contract made . . . .' Section 215.425 was formerly Art....

...he opportunity to do so, in order to obtain full retirement benefits because such action would constitute extra compensation or a lump sum allowance not provided for by law or contract granted after the rendition of services which is prohibited by s 215.425 . Thus retroactive extra compensation, lump sum allowances or other forms of compensation not provided for by law or contract and not earned in regular monthly installments are prohibited by s 215.425 . Chapter 80-114, Laws of Florida, amended s 215.425 to specify a limited exception to that section's general prohibition by providing that a district school board when adopting salary schedules for a fiscal year `may apply the schedule for payment of all services rendered subsequent to July 1...

...In the instant inquiry, the teacher seeks to recover the difference between what she received during the years 1973-1981 and what she would have been entitled to had she provided proof of her past work experience in compliance with school board policy. Such a payment would be, in my opinion, prohibited by the terms of s 215.425 ....

...dgeted and remain unspent at the time a board member's application has been processed; however, any application for retroactive compensation for services rendered by board members prior to the instant fiscal year must be by claims bill pursuant to s 215.425 , F.S....

...Compare AGO 075-279 wherein this office opined that a teacher's salary contract providing for a salary increase which is entered into through collective bargaining subsequent to the beginning of the salary year does not represent a claim for extra compensation prohibited by s 215.425 as the teacher did not perform his teaching services for an agreed upon salary under a binding contract applicable to the current year but rather performed those services in accordance with the previous year's salary schedule pending negotiat...

...Thus this office was of the opinion that a subsequent salary adjustment made after the collectively bargained agreement was approved and ratified and which was made pursuant to and in performance of said agreement did not appear to represent `extra compensation' prohibited by s 215.425 ....

...Accordingly, I am of the opinion, until and unless judicially or legislatively determined to the contrary, that the retroactive payment to a vocational teacher for eight years of prior vocational work related experience constitutes `extra compensation' prohibited by s 215.425 , F.S., and thus the district school board is unauthorized to make such a retroactive salary payment to the teacher....