Public Officers and EmployeesLocal Agency Executives
Section § 3511.1
This section defines key terms used in the chapter. 'Compensation' refers to the salary, stipend, or bonus paid to executives by local agency employers.
'Cost-of-living' is defined using the California Consumer Price Index for specific workers. A 'local agency' includes counties, cities, school districts, and other public agencies, and a 'local agency executive' is someone in a senior position like a CEO or department head, or someone with an employment contract, who is not regulated by specific labor laws like the Meyers-Milias-Brown Act.
Section § 3511.2
This law states that from January 1, 2012, any contract created or renewed between a local government agency and an executive cannot include either of two things. First, the contract cannot automatically renew with a pay increase larger than a standard cost-of-living increase. Second, the contract cannot include a cash settlement larger than what's allowed under specific rules outlined in another section of law (Section 53260).