Act 74 of 2011 (SB 829), which takes effect on September 5, 2011, amends Section 1301 of the Second Class Township Code regarding the Township Manager, by authorizing second class townships the option to enter into an employment agreement with its township manager. These employment agreements are subject to certain limitations as provided by Act 74. Act 74 limits the term of the agreement to the Township's organizational meeting after the next municipal election, but not for more then two years. For example, with 2011 being a municipal election year, any employment agreement entered into prior to the November election would terminate at the township's organizational meeting in January 2012. Any employment agreement entered into between the November 2011 election and the January 2012 organizational meeting would be limited to two years, as the organizational meeting after the next municipal election would not be until January of2014, more then two years away a township can set forth the terms for severance compensation; however, Act 74 prohibits any guarantee of employment throughout the term of the agreement or any legal remedy of specific performance. Act 74 does not change the fact that the township manager serves at the discretion of the board and is an at-will employee. A full copy of Act 74 is enclosed.

Robert T. McClintock
Voice (610) 430-8000
Fax (610) 692-6210
rmcclintock@lambmcerlane.com