Overview
QCC did not have documented internal policies or procedures in place when it executed any of the 20 employee settlement agreements identified for the period January 1, 2019 through December 30, 2023. We also noted that QCC did not maintain a centralized list of settlement agreements. Further, our review showed that 10 of the employee settlement agreements contained non-disclosure, non-disparagement, or similarly restrictive clauses. We also found two instances where the settlement stated not to rehire the employee; however, their names did not appear on the human resources “watch list.”
The table below summarizes the dates, amounts, and payment methods (if applicable) of the 20 employee settlement agreements that QCC entered into during the period January 1, 2019 through December 30, 2023.
| Were Allegations Specified in the Agreement? | Settlement Date | Amount | Method of Payment | Did the Agreement Include Non-disclosure, Non-disparagement, or Similarly Restrictive Clauses? |
|---|---|---|---|---|
| No* | May 14, 2019 | $2,250 | CTR | No |
| No** | December 9, 2019 | Nonmonetary | N/A | Yes |
| No* | May 12, 2020 | $14,200 | CTR | No |
| No* | May 25, 2021 | $600 | CTR | Yes |
| No* | May 25, 2021 | $3,300 | CTR | Yes |
| No* | May 25, 2021 | $600 | CTR | Yes |
| No* | May 25, 2021 | $500 | CTR | Yes |
| No* | December 7, 2021 | $1,635 | CTR | No |
| No* | October 5, 2022 | $50,000 | CTR | Yes |
| No* | November 18, 2022 | $3,250 | CTR | No |
| Yes** | November 25, 2022 | Nonmonetary | N/A | No |
| No* | December 6, 2022 | $1,800 | CTR | Yes |
| No* | June 21, 2023 | $850 | CTR | No |
| No* | June 21, 2023 | $725 | CTR | No |
| No* | June 26, 2023 | $25,000 | CTR | Yes |
| Yes* | November 8, 2023 | $12,000 | CTR | Yes |
| No* | April 14, 2022 | Nonmonetary | N/A | No |
| No* | February 19, 2020 | Nonmonetary | N/A | No |
| No* | October 21, 2019 | Nonmonetary | N/A | No |
| No* | May 10, 2022 | Nonmonetary | N/A | Yes |
* The settlement was related to an employment action (for example, employee termination because of alleged performance issues).
** The settlement was allegedly related to a general human resources issue (for example, an agreement to remove a letter and/or an evaluation from an employee’s human resources file).
If QCC does not have a documented, transparent, and accountable process to handle employee settlement agreements, especially those containing non-disclosure, non-disparagement, or similarly restrictive clauses, then it cannot ensure that employee settlement agreements are handled in an ethical, legal, or appropriate manner. Also, by not maintaining a comprehensive “watch list,” QCC may rehire a former employee with a provision in the settlement stating not to rehire.
Authoritative Guidance
Section 5.09 of Title 815 of the Code of Massachusetts Regulations states the following:
(1) Responsibility of assigned attorney or staff person: Preparation of Reports. When litigation involving a monetary claim against the Commonwealth covered by these regulation terminates in a final Settlement or judgment with regard to such a claim, the agency attorney or staff person assigned to handle or monitor the claim shall do the following:
(a) Prepare a report indicating:
1. the principal amount of the settlement or judgment;
2. the amount of any attorney’s fee award;
3. the amount of any interest award or accrued, and whether the interest continues to accrue post-judgment;
4. a request for payment of the amount;
5. a description of the basis for the request, (e.g., Court order or settlement agreement); and
6. whether the assigned attorney desires to award the payment check to the claimant;
(b) Forward the report with a copy of the settlement or judgment just described to the General Counsel of the [Office of the Comptroller of the Commonwealth] within the time frames set forth in [Section 5.09(2) of Title 815 of the Code of Massachusetts Regulations]. . . .
(2) Time for preparation of reports. The report . . . shall be sent by the agency attorney to the General Counsel of the Comptroller:
(a) if based on a settlement agreement, within 15 days of signing of the final settlement papers; or
(b) if based on a judgment against the Commonwealth or any agency, within fifteen days of the Commonwealth’s decision not to appeal; or
(c) if based on a judgment against the Commonwealth or an agency, where the Commonwealth decides to take an appeal from the judgment, within fifteen days of any final order on appeal or in remand proceedings, if such remand proceedings are ordered.
We consider this to be a best practice, since this regulation outlines the procedures required by CTR for executive branch state agencies.
Item 7 of one of the agreements in our sample contained a no-reemployment clause stating, “[Employee] shall not apply for future employment including volunteer opportunities at Quinsigamond Community College.”
Item 4 of one of the agreements in our sample contained a no-reemployment clause stating, “[Employee] shall not apply for future employment at Quinsigamond Community College.”
Reasons for Issue
QCC stated that it followed CTR’s policy for reporting monetary settlements. QCC also stated that it had an undocumented policy for employee settlement agreements, and QCC addressed employee settlement agreements on a case-by-case basis.
Recommendations
- QCC should develop, document, and implement a policy related to employee settlement agreements, including those with no reemployment clauses.
- QCC should track and document all complaints that include non-disclosure, non-disparagement, or similarly restrictive clauses in employee settlement agreements.
Auditee’s Response
The [Office of the State Auditor (OSA)] sought certain information related to state employee settlements pursuant to its authority outlined in Massachusetts General Laws Chapter 11, Section 12. Consistent with OSA’s authority and in keeping with the College’s duty to protect confidential information and Personally Identifiable Information (“PII”), a memorandum of understanding was entered into between the College and OSA addressing the confidentiality and security of this employee information.
Elaborating on the College’s prior produced information and statements regarding settlements, the applicable collective bargaining agreements (CBA) and the Non-Unit Professionals Personnel Policies Handbook (NUP) provide additional relevant context regarding when such agreements are entered into. Moreover, the College’s settlements with employees are entered into and processed consistent with the [Settlements and Judgments] Policy and applicable Comptroller procedures for processing, and consider, where applicable, legal advice and guidance from the Office of the Attorney General, Office of the General Counsel, Legal Unit of the Commonwealth’s Human Resources Division, and/or Office of the Comptroller, as applicable, at the time agreements were/are entered into.
Going forward and in consultation with the College’s Office of General Counsel, the College will establish written parameters to reference regarding the potential for entering settlement agreements with employees and whether such agreements should include language pertaining to non-disclosure, nondisparaging, non-publication, or ”similarly restrictive” clauses should such language be sought by any party to such an agreement. The College does not view and we believe OSA understands that an agreement reached that is non-precedent setting, especially in the context of union grievances, stands apart from the “similarly restrictive clauses” discussed in the prior sentence.
Auditor’s Reply
Based on its response, QCC is taking measures to address our concerns regarding this matter. As QCC crafts the policies it indicated above, we reiterate the importance of policies regarding no-reemployment clauses and internal controls to ensure that they are complied with. As part of our post-audit review process, we will follow up on this matter in approximately six months.
| Date published: | April 4, 2025 |
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