SF4859

Purpose

• Authorizes additional compensation to certain state employees when an agency does not make a scheduled payroll payment.
• Amends Minnesota Statutes to establish how late-payroll payments should be handled and paid.

Main provisions

• The bill amends Minnesota Statutes 2024, section 16A.17, subdivision 8, to require the commissioner to prescribe procedures that ensure payment is made only for hours worked, with specific exceptions.
• Exceptions to the “hours worked” rule include: 1) leave under a collective bargaining agreement (CBA), 2) leave under a plan described in section 43A.18 or the rules of the Department of Management and Budget, 3) to resolve a formal employee grievance permitted by law or a CBA, and 4) to distribute a financial penalty paid by an agency responsible for late payroll payment issuance when a penalty is required under a CBA.
• The bill aims to provide a framework for how late-payroll situations are resolved, including allowing payments beyond hours worked only in the enumerated cases and guiding how penalties are handled.

Significant changes to existing law

• Establishes that procedures for late-payroll payments will be prescribed by the commissioner, clarifying how compensation can be made in late-payroll situations.
• Explicitly permits, under defined exceptions, compensation for time not worked (such as certain leaves or grievance resolution), whereas previously payment would generally be restricted to hours worked.
• Introduces a mechanism related to distributing penalties charged to agencies for late payroll, in line with a collective bargaining agreement.

Relevant Terms

• additional compensation
• scheduled payroll payment
• hours worked
• leave under a collective bargaining agreement
• leave under a plan (section 43A.18) / rules of the Department of Management and Budget
• formal employee grievance
• collective bargaining agreement
• financial penalty
• late payroll payment
• commissioner
• Minnesota Statutes 2024 section 16A.17 subdivision 8