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Whitmer: Severance deals with secrecy clauses can continue

Gov. Gretchen Whitmer, January 22, 2021 photo
Michigan Office of the Governor

Gov. Gretchen Whitmer on Friday set policies regarding severance agreements with departing state employees, letting such deals continue despite criticism of payouts to some top administration officials that included confidentiality clauses.

The executive directive specifies that Michigan’s executive branch cannot agree to deny the existence of a deal or withhold its details. The measure also allows payments for something other than services rendered if the worker waives potential legal action, and the state determines it will mitigate financial risk and protect taxpayer money.

But the Democratic governor also said non-disclosure or confidentiality provisions can shield information related to an “employment decision or dispute, including but not limited to the circumstances of the departure.”

Such terms were included in a February agreement with Robert Gordon, who abruptly resigned as state health director — during the pandemic — and received $155,000. Steve Gray, the state’s former unemployment director whose agency was deluged with claims during the virus outbreak, got $85,000 to leave in November.

Whitmer said the edict’s measures “ensure greater accountability and promote transparency.”

But Republicans blasted the move. Lawmakers who have criticized the “hush money” agreements, particularly the non-disclosure provisions, again vowed to try to prohibit similar agreements as they consider spending bills in coming months. Severance payments with legislative employees also have been reported.

Whitmer “brazenly doubled down on secrecy,” said Tony Daunt, executive director of the Michigan Freedom Fund. He called the directive “a direct and arrogant assault on Michiganians’ right to know what their government is doing.”

Under the directive, an agreement could not keep a party from disclosing alleged unlawful activity related to discrimination, retaliation, sexual harassment or fraud.

Gordon, who issued similar COVID-19 restrictions after the governor’s emergency orders were upended by court, quit in January — the same day Whitmer announced restaurants and bars could reopen for indoor dining. She has not said why he left, citing the separation agreement. Gordon has said governors need to make final decisions about policy with confidential advice and be comfortable with their agency heads.