{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/23.1-1026.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/23.1-1026.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/23.1-1026.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/23.1-1026.html"}],"law_id":64122,"edition_id":1,"section_id":64122,"structure_id":14810,"section_number":"23.1-1026","catch_line":"Covered institutions; operational authority; human resources; severance policies","history":"2005, cc. 933, 945, \u00a7 23-38.120; 2016, c. 588; 2017, c. 314.","full_text":"A\n\nEach covered institution shall adopt a severance policy for its eligible participating covered employees that is applicable to voluntary and involuntary separations, including reductions in workforce. The provisions of the Workforce Transition Act (§ 2.2-3200 et seq.) shall not apply to participating covered employees.B\n\nThe terms and conditions of a covered institution’s severance policy for eligible participating covered employees shall be determined by the institution’s governing board. The covered institution and the Board of the Virginia Retirement System shall negotiate a formula according to which cash severance benefits may be converted to years of age or creditable service for participating covered employees who participate in the Virginia Retirement System.C\n\nCovered employees who (i) were employees of a covered institution and were covered by the provisions of Chapter 29 (§ 2.2-2900 et seq.) of Title 2.2 prior to the effective date of the initial management agreement, (ii) would otherwise be eligible for severance benefits under the Workforce Transition Act (§ 2.2-3200 et seq.), and (iii) are separated by a covered institution because of a reduction in workforce have the same preferential hiring rights with state agencies and other executive branch institutions as other state employees have under § 2.2-3201. A covered institution shall recognize the hiring preference conferred by § 2.2-3201 on state employees who were (a) hired by a state agency or executive branch institution before the covered institution’s effective date of the initial management agreement and (b) separated after that date by that state agency or executive branch institution because of a reduction in workforce. If a covered institution has adopted a classification system pursuant to § 23.1-1021 that differs from the classification system administered by the Department of Human Resource Management, the covered institution shall classify the separated employee according to its classification system and shall place the separated employee appropriately. Any such separated employee who is hired by a covered institution is a participating covered employee for purposes of this article. Classification decisions that are made pursuant to this subsection and apply to employees transferring between state agencies, between other executive branch institutions and covered institutions, and between covered institutions as a result of a reduction in workforce and with the preferential hiring rights provided in this subsection and in § 2.2-3201 are presumed appropriate, and a separated employee who grieves the classification decision bears the burden of demonstrating that the classification violates the separated employee’s preferential hiring rights.D\n\nAn employee’s transition from being an employee of a public institution of higher education to being a covered employee of a covered institution on the effective date of a covered institution’s initial management agreement shall not, in and of itself, constitute a severance of that employee or a reduction in workforce that would make either the covered institution’s severance policy adopted pursuant to subsection A or the Workforce Transition Act (§ 2.2-3200 et seq.) applicable to that employee.","order_by":null,"text":{"0":{"id":233452,"text":"Each covered institution shall adopt a severance policy for its eligible participating covered employees that is applicable to voluntary and involuntary separations, including reductions in workforce. The provisions of the Workforce Transition Act (§ 2.2-3200 et seq.) shall not apply to participating covered employees.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":233453,"text":"The terms and conditions of a covered institution’s severance policy for eligible participating covered employees shall be determined by the institution’s governing board. The covered institution and the Board of the Virginia Retirement System shall negotiate a formula according to which cash severance benefits may be converted to years of age or creditable service for participating covered employees who participate in the Virginia Retirement System.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":233454,"text":"Covered employees who (i) were employees of a covered institution and were covered by the provisions of Chapter 29 (§ 2.2-2900 et seq.) of Title 2.2 prior to the effective date of the initial management agreement, (ii) would otherwise be eligible for severance benefits under the Workforce Transition Act (§ 2.2-3200 et seq.), and (iii) are separated by a covered institution because of a reduction in workforce have the same preferential hiring rights with state agencies and other executive branch institutions as other state employees have under § 2.2-3201. A covered institution shall recognize the hiring preference conferred by § 2.2-3201 on state employees who were (a) hired by a state agency or executive branch institution before the covered institution’s effective date of the initial management agreement and (b) separated after that date by that state agency or executive branch institution because of a reduction in workforce. If a covered institution has adopted a classification system pursuant to § 23.1-1021 that differs from the classification system administered by the Department of Human Resource Management, the covered institution shall classify the separated employee according to its classification system and shall place the separated employee appropriately. Any such separated employee who is hired by a covered institution is a participating covered employee for purposes of this article. Classification decisions that are made pursuant to this subsection and apply to employees transferring between state agencies, between other executive branch institutions and covered institutions, and between covered institutions as a result of a reduction in workforce and with the preferential hiring rights provided in this subsection and in § 2.2-3201 are presumed appropriate, and a separated employee who grieves the classification decision bears the burden of demonstrating that the classification violates the separated employee’s preferential hiring rights.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":233455,"text":"An employee’s transition from being an employee of a public institution of higher education to being a covered employee of a covered institution on the effective date of a covered institution’s initial management agreement shall not, in and of itself, constitute a severance of that employee or a reduction in workforce that would make either the covered institution’s severance policy adopted pursuant to subsection A or the Workforce Transition Act (§ 2.2-3200 et seq.) applicable to that employee.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":14810,"edition_id":1,"name":"Restructured Financial and Administrative Authority; Covered Institutions; Management Agreements","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":14809,"metadata":{},"date_created":"2026-06-26 03:50:04","date_modified":"2026-06-26 03:50:04","permalink":{"id":185539,"object_type":"structure","relational_id":14810,"identifier":"4","token":"23.1\/III\/10\/4","url":"\/23.1\/III\/10\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14809,"edition_id":1,"name":"Restructured Higher Education Financial and Administrative Operations Act","identifier":"10","label":"chapter","depth":3,"order_by":1,"parent_id":14060,"metadata":{},"date_created":"2026-06-26 03:50:04","date_modified":"2026-06-26 03:50:04","permalink":{"id":185515,"object_type":"structure","relational_id":14809,"identifier":"10","token":"23.1\/III\/10","url":"\/23.1\/III\/10\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14060,"edition_id":1,"name":"Management and Financing","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":13111,"metadata":{},"date_created":"2026-06-26 03:46:44","date_modified":"2026-06-26 03:46:44","permalink":{"id":185513,"object_type":"structure","relational_id":14060,"identifier":"III","token":"23.1\/III","url":"\/23.1\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13111,"edition_id":1,"name":"Institutions of Higher Education; Other Educational and Cultural Institutions","identifier":"23.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:18","date_modified":"2026-06-26 03:44:18","permalink":{"id":184581,"object_type":"structure","relational_id":13111,"identifier":"23.1","token":"23.1","url":"\/23.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":72164,"structure_id":14810,"section_number":"23.1-1004","catch_line":"Management agreement; eligibility and application","url":"\/23.1-1004\/","token":"23.1\/III\/10\/4\/23.1-1004","metadata":false},{"id":83668,"structure_id":14810,"section_number":"23.1-1005","catch_line":"Approval of a management agreement","url":"\/23.1-1005\/","token":"23.1\/III\/10\/4\/23.1-1005","metadata":false},{"id":56640,"structure_id":14810,"section_number":"23.1-1006","catch_line":"Management agreement; contents and scope","url":"\/23.1-1006\/","token":"23.1\/III\/10\/4\/23.1-1006","metadata":false},{"id":63108,"structure_id":14810,"section_number":"23.1-1007","catch_line":"Management agreement; duration and oversight","url":"\/23.1-1007\/","token":"23.1\/III\/10\/4\/23.1-1007","metadata":false},{"id":58529,"structure_id":14810,"section_number":"23.1-1008","catch_line":"Covered institutions; operational authority generally","url":"\/23.1-1008\/","token":"23.1\/III\/10\/4\/23.1-1008","metadata":false},{"id":68969,"structure_id":14810,"section_number":"23.1-1009","catch_line":"Covered institutions; operational authority; projects","url":"\/23.1-1009\/","token":"23.1\/III\/10\/4\/23.1-1009","metadata":false},{"id":71430,"structure_id":14810,"section_number":"23.1-1010","catch_line":"Covered institutions; operational authority; creation of entities and participation in joint ventures","url":"\/23.1-1010\/","token":"23.1\/III\/10\/4\/23.1-1010","metadata":false},{"id":66142,"structure_id":14810,"section_number":"23.1-1011","catch_line":"Covered institutions; operational authority; campus police","url":"\/23.1-1011\/","token":"23.1\/III\/10\/4\/23.1-1011","metadata":false},{"id":69766,"structure_id":14810,"section_number":"23.1-1012","catch_line":"Covered institutions; operational authority; financial operations generally","url":"\/23.1-1012\/","token":"23.1\/III\/10\/4\/23.1-1012","metadata":false},{"id":79752,"structure_id":14810,"section_number":"23.1-1013","catch_line":"Covered institutions; operational authority; financial operations; investment of operating funds","url":"\/23.1-1013\/","token":"23.1\/III\/10\/4\/23.1-1013","metadata":false},{"id":68235,"structure_id":14810,"section_number":"23.1-1014","catch_line":"Covered institutions; operational authority; financial operations; financing and indebtedness","url":"\/23.1-1014\/","token":"23.1\/III\/10\/4\/23.1-1014","metadata":false},{"id":65904,"structure_id":14810,"section_number":"23.1-1015","catch_line":"Covered institutions; operational authority; financial operations; power to issue bonds, notes, or other obligations","url":"\/23.1-1015\/","token":"23.1\/III\/10\/4\/23.1-1015","metadata":false},{"id":86805,"structure_id":14810,"section_number":"23.1-1016","catch_line":"Covered institutions; operational authority; financial operations; capital projects","url":"\/23.1-1016\/","token":"23.1\/III\/10\/4\/23.1-1016","metadata":false},{"id":74516,"structure_id":14810,"section_number":"23.1-1017","catch_line":"Covered institutions; operational authority; procurement","url":"\/23.1-1017\/","token":"23.1\/III\/10\/4\/23.1-1017","metadata":false},{"id":79632,"structure_id":14810,"section_number":"23.1-1018","catch_line":"Covered institutions; operational authority; information technology","url":"\/23.1-1018\/","token":"23.1\/III\/10\/4\/23.1-1018","metadata":false},{"id":68739,"structure_id":14810,"section_number":"23.1-1019","catch_line":"Covered institutions; operational authority; property, grants, and loans","url":"\/23.1-1019\/","token":"23.1\/III\/10\/4\/23.1-1019","metadata":false},{"id":61212,"structure_id":14810,"section_number":"23.1-1020","catch_line":"Covered institutions; operational authority; human resources; covered employees generally","url":"\/23.1-1020\/","token":"23.1\/III\/10\/4\/23.1-1020","metadata":false},{"id":78983,"structure_id":14810,"section_number":"23.1-1021","catch_line":"Covered institutions; operational authority; human resources; establishment of a human resources program","url":"\/23.1-1021\/","token":"23.1\/III\/10\/4\/23.1-1021","metadata":false},{"id":59817,"structure_id":14810,"section_number":"23.1-1022","catch_line":"Covered institutions; operational authority; human resources; election by certain covered employees","url":"\/23.1-1022\/","token":"23.1\/III\/10\/4\/23.1-1022","metadata":false},{"id":67808,"structure_id":14810,"section_number":"23.1-1023","catch_line":"Covered institutions; operational authority; human resources; grievance procedures","url":"\/23.1-1023\/","token":"23.1\/III\/10\/4\/23.1-1023","metadata":false},{"id":75091,"structure_id":14810,"section_number":"23.1-1024","catch_line":"Covered institutions; operational authority; human resources; miscellaneous personnel matters","url":"\/23.1-1024\/","token":"23.1\/III\/10\/4\/23.1-1024","metadata":false},{"id":76407,"structure_id":14810,"section_number":"23.1-1025","catch_line":"Covered institutions; operational authority; human resources; certain insurance plans","url":"\/23.1-1025\/","token":"23.1\/III\/10\/4\/23.1-1025","metadata":false},{"id":64122,"structure_id":14810,"section_number":"23.1-1026","catch_line":"Covered institutions; operational authority; human resources; severance policies","url":"\/23.1-1026\/","token":"23.1\/III\/10\/4\/23.1-1026","metadata":false},{"id":82551,"structure_id":14810,"section_number":"23.1-1027","catch_line":"Covered institutions; duties; tuition, fees, rentals, and other charges","url":"\/23.1-1027\/","token":"23.1\/III\/10\/4\/23.1-1027","metadata":false},{"id":73063,"structure_id":14810,"section_number":"23.1-1028","catch_line":"Covered institutions; duties; leases of property","url":"\/23.1-1028\/","token":"23.1\/III\/10\/4\/23.1-1028","metadata":false}],"previous_section":{"id":76407,"structure_id":14810,"section_number":"23.1-1025","catch_line":"Covered institutions; operational authority; human resources; certain insurance plans","url":"\/23.1-1025\/","token":"23.1\/III\/10\/4\/23.1-1025","metadata":false},"next_section":{"id":82551,"structure_id":14810,"section_number":"23.1-1027","catch_line":"Covered institutions; duties; tuition, fees, rentals, and other charges","url":"\/23.1-1027\/","token":"23.1\/III\/10\/4\/23.1-1027","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/23.1-1026\/","history_text":"

This law was first created in 2005. The record of its establishment is cataloged in chapters 933<\/a> and 945<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2016, chapter 588<\/a>; in 2017, chapter 314<\/a>.<\/p>","references":[{"id":58529,"section_number":"23.1-1008","catch_line":"Covered institutions; operational authority generally","order_by":null,"url":"\/23.1-1008\/"},{"id":59817,"section_number":"23.1-1022","catch_line":"Covered institutions; operational authority; human resources; election by certain covered employees","order_by":null,"url":"\/23.1-1022\/"},{"id":62951,"section_number":"51.1-145","catch_line":"Employer contributions","order_by":null,"url":"\/51.1-145\/"}],"refers_to":[{"id":65778,"section_number":"2.2-2900","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-2900\/"},{"id":65287,"section_number":"2.2-3200","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-3200\/"},{"id":54495,"section_number":"2.2-3201","catch_line":"Duties of Department of Human Resource Management and executive branch agencies to involuntarily separated employees","order_by":null,"url":"\/2.2-3201\/"},{"id":78983,"section_number":"23.1-1021","catch_line":"Covered institutions; operational authority; human resources; establishment of a human resources program","order_by":null,"url":"\/23.1-1021\/"}],"permalink":{"id":185629,"object_type":"law","relational_id":64122,"identifier":"23.1-1026","token":"23.1\/III\/10\/4\/23.1-1026","url":"\/23.1-1026\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/23.1-1026\/","token":"23.1\/III\/10\/4\/23.1-1026","dublin_core":{"Title":"Covered institutions; operational authority; human resources; severance policies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 23.1-1026","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each covered institution<\/span> shall adopt a severance policy for its eligible participating covered employees<\/span> that is applicable to voluntary and involuntary separations, including reductions in workforce. The provisions of the Workforce Transition Act (§ 2.2-3200<\/a> et seq.) shall not apply to participating covered employees<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The terms and conditions of a covered institution<\/span>’s severance policy for eligible participating covered employees<\/span> shall be determined by the institution’s governing board<\/span>. The covered institution<\/span> and the Board of the Virginia Retirement System<\/span> shall negotiate a formula according to which cash severance benefits may be converted to years of age or creditable service for participating covered employees<\/span> who participate in the Virginia Retirement System<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Covered employees who (i) were employees of a covered institution<\/span> and were covered by the provisions of Chapter 29 (§ 2.2-2900<\/a> et seq.) of Title 2.2 prior to the effective date of the initial management agreement<\/span>, (ii) would otherwise be eligible for severance benefits under the Workforce Transition Act (§ 2.2-3200<\/a> et seq.), and (iii) are separated by a covered institution<\/span> because of a reduction in workforce have the same preferential hiring rights with state agencies and other executive branch institutions as other state employees have under § 2.2-3201<\/a>. A covered institution<\/span> shall recognize the hiring preference conferred by § 2.2-3201<\/a> on state employees who were (a) hired by a state agency or executive branch institution before the covered institution<\/span>’s effective date of the initial management agreement<\/span> and (b) separated after that date by that state agency or executive branch institution because of a reduction in workforce. If a covered institution<\/span> has adopted a classification system pursuant to § 23.1-1021<\/a> that differs from the classification system administered by the Department of Human Resource Management, the covered institution<\/span> shall classify the separated employee according to its classification system and shall place the separated employee appropriately. Any such separated employee who is hired by a covered institution<\/span> is a participating covered employee<\/span> for purposes of this article. Classification decisions that are made pursuant to this subsection and apply to employees transferring between state agencies, between other executive branch institutions and covered institutions<\/span>, and between covered institutions<\/span> as a result of a reduction in workforce and with the preferential hiring rights provided in this subsection and in § 2.2-3201<\/a> are presumed appropriate, and a separated employee who grieves the classification decision bears the burden of demonstrating that the classification violates the separated employee’s preferential hiring rights. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> An employee’s transition from being an employee of a public institution of higher education<\/span> to being a covered employee of a covered institution<\/span> on the effective date of a covered institution<\/span>’s initial management agreement<\/span> shall not, in and of itself, constitute a severance of that employee or a reduction in workforce that would make either the covered institution<\/span>’s severance policy adopted pursuant to subsection A or the Workforce Transition Act (§ 2.2-3200<\/a> et seq.) applicable to that employee. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCOVERED INSTITUTIONS; OPERATIONAL AUTHORITY; HUMAN RESOURCES; SEVERANCE POLICIES\n(\u00a7 23.1-1026)\n\nA. Each covered institution shall adopt a severance policy for its eligible\nparticipating covered employees that is applicable to voluntary and involuntary\nseparations, including reductions in workforce. The provisions of the Workforce\nTransition Act (§ 2.2-3200 et seq.) shall not apply to participating\ncovered employees.\n\nB. The terms and conditions of a covered institution’s severance policy\nfor eligible participating covered employees shall be determined by the\ninstitution’s governing board. The covered institution and the Board of\nthe Virginia Retirement System shall negotiate a formula according to which cash\nseverance benefits may be converted to years of age or creditable service for\nparticipating covered employees who participate in the Virginia Retirement\nSystem.\n\nC. Covered employees who (i) were employees of a covered institution and were\ncovered by the provisions of Chapter 29 (§ 2.2-2900 et seq.) of Title 2.2\nprior to the effective date of the initial management agreement, (ii) would\notherwise be eligible for severance benefits under the Workforce Transition Act\n(§ 2.2-3200 et seq.), and (iii) are separated by a covered institution\nbecause of a reduction in workforce have the same preferential hiring rights\nwith state agencies and other executive branch institutions as other state\nemployees have under § 2.2-3201. A covered institution shall recognize the\nhiring preference conferred by § 2.2-3201 on state employees who were (a)\nhired by a state agency or executive branch institution before the covered\ninstitution’s effective date of the initial management agreement and (b)\nseparated after that date by that state agency or executive branch institution\nbecause of a reduction in workforce. If a covered institution has adopted a\nclassification system pursuant to § 23.1-1021 that differs from the\nclassification system administered by the Department of Human Resource\nManagement, the covered institution shall classify the separated employee\naccording to its classification system and shall place the separated employee\nappropriately. Any such separated employee who is hired by a covered institution\nis a participating covered employee for purposes of this article. Classification\ndecisions that are made pursuant to this subsection and apply to employees\ntransferring between state agencies, between other executive branch institutions\nand covered institutions, and between covered institutions as a result of a\nreduction in workforce and with the preferential hiring rights provided in this\nsubsection and in § 2.2-3201 are presumed appropriate, and a separated\nemployee who grieves the classification decision bears the burden of\ndemonstrating that the classification violates the separated employee’s\npreferential hiring rights.\n\nD. An employee’s transition from being an employee of a public institution\nof higher education to being a covered employee of a covered institution on the\neffective date of a covered institution’s initial management agreement\nshall not, in and of itself, constitute a severance of that employee or a\nreduction in workforce that would make either the covered institution’s\nseverance policy adopted pursuant to subsection A or the Workforce Transition\nAct (§ 2.2-3200 et seq.) applicable to that employee.\n\nHISTORY: 2005, cc. 933, 945, \u00a7 23-38.120; 2016, c. 588; 2017, c. 314.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}