Local Education Agencies - As introduced, prohibits a school board from offering or providing severance pay to a director of schools who is terminated without cause in an amount that exceeds the annual salary amount the director was receiving at the time of termination; prohibits a school board from offering or providing severance pay to a director of schools who is terminated with cause. - Amends TCA Title 49, Chapter 2.

HB 2489 limits severance pay for school directors in Tennessee. It prohibits school boards from offering severance exceeding the director’s annual salary if terminated without cause, and bans severance entirely for terminations with cause. The bill amends Tennessee law (TCA Title 49, Chapter 2) to apply to all contracts entered into or renewed on or after July 1, 2025. This directly affects school boards and directors of schools by restricting financial settlements upon termination.