Liquidated Damages

Liquidated Damages


A teacher is required by law to give his or her employing board of education a written resignation by May 15th of any school year when the teacher intends not to return to the district for the following school year.  If a teacher does not give “notice” by May 15th, the teacher’s contract is deemed extended until the end of the next school year.  A teacher who does not fulfill the terms of his or her employment contract is “breaching” the contract.


A teacher does not have the authority to enter into an employment contract with the board of education of any other school district until they are legally released by their current board of education.

 A Board’s remedy for a teacher breaching a contract 

Absent a liquidated damage clause in the negotiated agreement or in school board policy, the board may require the teacher to pay damages to the district for a breach of contract.  The district must do its best to decrease or “mitigate” its damages.  Damages may include the cost of advertising the position, interviewing costs for candidates for the position, substitute pay, or the difference between the salary of the current teacher and the teacher’s more expensive replacement.  If the teacher’s replacement costs the district less, there may be no damages.

 Suspension of teaching certification 

Any teacher who enters into a teaching contract with another school district without having first been released from his/her original or continuing contract, risks the suspension of his/her teaching certificate for one year.


Upon written complaint signed by 2/3 of the members of the local board of education, the state board of education must suspend the teacher’s certificate for the remainder of the term of the  contract if, after a hearing before the state board, the teacher is found guilty of the charge.