Bill Text: MN HF2142 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public employment paid time off conditions specified.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-08 - Introduction and first reading, referred to Government Operations and Elections [HF2142 Detail]
Download: Minnesota-2011-HF2142-Introduced.html
1.2relating to public employment; specifying conditions for paid time off;amending
1.3Minnesota Statutes 2010, sections 43A.17, subdivisions 8, 11; 43A.181;
1.443A.1815; 465.72; 465.722, subdivision 2; 471.66; proposing coding for new
1.5law in Minnesota Statutes, chapters 43A; 471.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 43A.17, subdivision 8, is amended to read:
1.8 Subd. 8. Accumulatedvacation leave. The commissioner shall not agree to a
1.9collective bargaining agreement or recommend a compensation plan pursuant to section
1.1043A.18, subdivisions 1, 2, 3, and 4
, nor shall an arbitrator issue an award under sections
1.11179A.01
to
179A.25 , if the compensation plan, agreement, or award permits an employee
1.12to convert accumulatedvacation leave paid time off into cash before separation from
1.13state service.
1.14This section does not prohibit the commissioner from negotiating a collective
1.15bargaining agreement or recommending approval of a compensation plan which: (1)
1.16permits an employee to receive payment for accumulatedvacation leave paid time off
1.17upon beginning an unpaid leave of absence approved for more than one year in duration if
1.18the leave of absence is not for the purpose of accepting an unclassified position in state
1.19civil service; (2) permits an employee to receive payment for accumulatedvacation leave
1.20paid time off upon layoff; or (3) permits an employee to receive payment for accumulated
1.21vacation leave paid time off if a change in employment results in the employee being
1.22ineligible to accrue furthervacation leave paid time off.
1.23 Sec. 2. Minnesota Statutes 2010, section 43A.17, subdivision 11, is amended to read:
2.1 Subd. 11. Severance pay for certain employees. (a) For purposes of this
2.2subdivision, "highly compensated employee" means an employee of the state whose
2.3estimated annual compensation is greater than 60 percent of the governor's annual salary,
2.4and who is not covered by a collective bargaining agreement negotiated under chapter
2.5179A.
2.6(b) Severance pay for a highly compensated employee includes benefits or
2.7compensation with a quantifiable monetary value, that are provided for an employee upon
2.8termination of employment and are not part of the employee's annual wages and benefits
2.9and are not specifically excluded by this subdivision. Severance pay does not include
2.10payments for accumulatedvacation, accumulated sick leave, and accumulated sick leave
2.11paid time off liquidated to cover the cost of group term insurance. Severance pay for a
2.12highly compensated employee does not include payments of periodic contributions by
2.13an employer toward premiums for group insurance policies. The severance pay for a
2.14highly compensated employee must be excluded from retirement deductions and from any
2.15calculations of retirement benefits. Severance pay for a highly compensated employee
2.16must be paid in a manner mutually agreeable to the employee and the employee's
2.17appointing authority over a period not to exceed five years from retirement or termination
2.18of employment. If a retired or terminated employee dies before all or a portion of the
2.19severance pay has been disbursed, the balance due must be paid to a named beneficiary
2.20or, lacking one, to the deceased's estate. Except as provided in paragraph (c), severance
2.21pay provided for a highly compensated employee leaving employment may not exceed an
2.22amount equivalent to six months of pay.
2.23(c) Severance pay for a highly compensated employee may exceed an amount
2.24equivalent to six months of pay if the severance pay is part of an early retirement incentive
2.25offer approved by the state and the same early retirement incentive offer is also made
2.26available to all other employees of the appointing authority who meet generally defined
2.27criteria relative to age or length of service.
2.28 Sec. 3. Minnesota Statutes 2010, section 43A.181, is amended to read:
2.2943A.181 UNREIMBURSED MEDICAL COSTSVACATION DONATION
2.30PROGRAM.
2.31 Subdivision 1. Donation ofvacation time. A state employee may donate up to 12
2.32hours of accruedvacation time paid time off in any fiscal year to the account established
2.33by subdivision 2 for the benefit of another state employee. The employee must notify the
2.34employee's agency head of the amount of accruedvacation time the employee wishes to
2.35donate and the name of the other state employee who is to benefit from the donation. The
3.1agency head shall determine the monetary value of the donated time, using the gross salary
3.2of the employee making the donation. The agency head shall transfer that amount, less
3.3deductions for applicable taxes and retirement contributions, to the account established
3.4by subdivision 2. A donation of accruedvacation time is irrevocable once its monetary
3.5value has been transferred to the account.
3.6 Subd. 2. Benefit account. Thevacation paid time off benefit account, consisting
3.7of money transferred under subdivision 1, is administered by the commissioner of
3.8management and budget. Money in the account is appropriated to the commissioner for
3.9purposes of this section.
3.10 Subd. 3. Use of account assets. Expenditures from the account established by
3.11subdivision 2 may be made to pay unreimbursed medical expenses when the total of those
3.12expenses is at least $10,000 and the expenses are incurred because of the illness of or
3.13injury to a state employee or the employee's spouse or dependent. Up to 40 percent of
3.14the funds donated to an individual employee's account may be used to pay for housing
3.15and transportation accessibility costs required by the employee who suffered an injury.
3.16Any money remaining after all of the expenses incurred by the employee named to benefit
3.17from a donation have been paid may be transferred to a general pool. The commissioner
3.18may use the pool to pay unreimbursed medical expenses for another state employee
3.19named to benefit from donatedvacation time but whose unreimbursed expenses exceed
3.20the monetary value of the donated time.
3.21 Sec. 4. [43A.1812] PAID TIME OFF.
3.22A collective bargaining agreement or compensation plan covering a state employee
3.23may provide for paid time off, but may not separately provide for sick leave or vacation
3.24leave. An employee may not earn more than 160 hours of paid time off in a calendar year.
3.25At the end of each calendar year, an employee may not have a balance of more than 160
3.26hours of paid time off. For purposes of this section, paid time off does not include a
3.27holiday, as defined in section 645.44, subdivision 5.
3.28 Sec. 5. Minnesota Statutes 2010, section 43A.1815, is amended to read:
3.2943A.1815VACATION PAID TIME OFF DONATION TO SICK LEAVE
3.30ACCOUNT.
3.31 (a) In addition to donations under section43A.181 , a state employee may donate
3.32a total of up to 40 hours of accruedvacation leave paid time off each fiscal year to the
3.33sick leave paid time off account of one or more state employees. A state employee may
3.34not be paid for more than 80 hours in a payroll period during which the employee uses
4.1sick leave paid time off credited to the employee's account as a result of a transfer from
4.2another state employee'svacation account.
4.3(b) The recipient employee must receive donations, as available, for a life-threatening
4.4condition of the employee or spouse or dependent child that prevents the employee
4.5from working. A recipient may use program donations retroactively to when all forms
4.6of paid leave are exhausted if the employee has sufficient donations to cover the period
4.7of retroactivity.
4.8(c) An applicant for benefits under this section who receives an unfavorable
4.9determination may select a designee to consult with the commissioner or commissioner's
4.10designee on the reasons for the determination.
4.11 (d) The commissioner shall establish procedures under section43A.04, subdivision
4.124 , for eligibility, duration of need based on individual cases, monitoring and evaluation of
4.13individual eligibility status, and other topics related to administration of this program.
4.14 Sec. 6. Minnesota Statutes 2010, section 465.72, is amended to read:
4.15465.72 SEVERANCE PAY.
4.16 Subdivision 1. Payment; limits. Except as may otherwise be provided in Laws
4.171959, chapter 690, as amended, a county, city, township, school district or other
4.18governmental subdivision may pay severance pay to its employees and adopt rules for
4.19the payment of severance pay to an employee who leaves employment. Severance
4.20pay does not include compensation for accumulatedsick leave paid time off or other
4.21payments in the form of periodic contributions by an employer toward premiums for
4.22group insurance policies for a former employee. The severance pay must be excluded
4.23from retirement deductions and from any calculations in retirement benefits. Severance
4.24pay must be paid in a manner mutually agreeable to the employee and employer over
4.25a period not to exceed five years from retirement or termination of employment. If a
4.26retired or terminated employee dies before all or a portion of the severance pay has been
4.27disbursed, that balance due must be paid to a named beneficiary or, lacking one, to the
4.28deceased's estate. Severance pay provided for an employee leaving employment may not
4.29exceed an amount equivalent to one year of pay.
4.30 Sec. 7. Minnesota Statutes 2010, section 465.722, subdivision 2, is amended to read:
4.31 Subd. 2. Limits on severance pay. Notwithstanding any contrary provision of
4.32section465.72, subdivision 1 , severance pay for a highly compensated employee includes
4.33benefits or compensation with a quantifiable monetary value, that are provided for an
4.34employee upon termination of employment and are not part of the employee's annual
5.1wages and benefits and are not specifically excluded by this subdivision. Severance pay
5.2shall not include payments for accumulatedvacation, accumulated sick leave paid time
5.3off, and accumulatedsick leave paid time off liquidated to cover the cost of group term
5.4insurance provided under section471.61 to retiring employees. Severance pay for a
5.5highly compensated employee does not include payments of periodic contributions by
5.6an employer toward premiums for group insurance policies. The severance pay for a
5.7highly compensated employee must be excluded from retirement deductions and from any
5.8calculations of retirement benefits. Severance pay for a highly compensated employee
5.9must be paid in a manner mutually agreeable to the employee and the governing body
5.10of the local unit of government over a period not to exceed five years from retirement
5.11or termination of employment. If a retired or terminated employee dies before all or a
5.12portion of the severance pay has been disbursed, the balance due must be paid to a named
5.13beneficiary or, lacking one, to the deceased's estate. Except as provided in subdivision 3,
5.14severance pay provided for a highly compensated employee leaving employment may
5.15not exceed an amount equivalent to six months of wages.
5.16 Sec. 8. [471.657] PAID TIME OFF.
5.17A collective bargaining agreement or compensation plan covering an employee
5.18of a statutory or home rule charter city, county, town, school district, metropolitan or
5.19other regional agency, or other political subdivision may provide for paid time off, but
5.20may not separately provide for sick leave or vacation leave. An employee may not earn
5.21more than 160 hours of paid time off in a calendar year. At the end of each calendar
5.22year, an employee may not have a balance of more than 160 hours of paid time off. For
5.23purposes of this section, paid time off does not include a holiday, as defined in section
5.24645.44, subdivision 5.
5.25 Sec. 9. Minnesota Statutes 2010, section 471.66, is amended to read:
5.26471.66 VACATIONS.
5.27 Subdivision 1. With or without pay. The governing body of each city and town in
5.28the state of Minnesota, however organized, may by resolution or ordinance provide for the
5.29granting of paid time off and for the granting of vacations, with or without pay, to all its
5.30regularly employed employees or officers, upon such terms and under such conditions as
5.31said governing body may determine, and subject to section 471.657 and subject to such
5.32requirements as to length of service with such municipality as said governing body may
5.33require.
6.1 Subd. 2. No retroactivity. Nothing in subdivision 1 shall be construed as retroactive
6.2in its purpose or intent so as to give the governing body of any such city or town the right
6.3to grantvacations paid time off based on service of its employees or officers rendered prior
6.4to the enactment of such ordinance or resolution.
6.5 Subd. 3. Elected officials. No elected official of a statutory or home rule charter
6.6city, county, town, school district, metropolitan or regional agency, or other political
6.7subdivision of this state, may receive monetary compensation for unusedvacation or
6.8sick leave paid time off accruals. Nothing in this subdivision shall restrict an elected
6.9official from takingvacation or sick leave time paid time off that may be provided for
6.10by resolution or ordinance of the governing body of a statutory or home rule charter
6.11city, county, town, school district, metropolitan or regional agency, or other political
6.12subdivision of this state, subject to section 471.657.
6.13 Sec. 10. EFFECTIVE DATE.
6.14Sections 1 to 9 are effective July 1, 2013. For an employee whose vacation, sick
6.15leave, or paid time off balances exceed the maximum permissible accumulation specified
6.16in section 4 or 8 on that date, the maximum permissible balance is the person's balance
6.17on that date. The higher balance is authorized only during the person's employment with
6.18the person's employer as of July 1, 2013.
1.3Minnesota Statutes 2010, sections 43A.17, subdivisions 8, 11; 43A.181;
1.443A.1815; 465.72; 465.722, subdivision 2; 471.66; proposing coding for new
1.5law in Minnesota Statutes, chapters 43A; 471.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 43A.17, subdivision 8, is amended to read:
1.8 Subd. 8. Accumulated
1.9collective bargaining agreement or recommend a compensation plan pursuant to section
1.12to convert accumulated
1.13state service.
1.14This section does not prohibit the commissioner from negotiating a collective
1.15bargaining agreement or recommending approval of a compensation plan which: (1)
1.16permits an employee to receive payment for accumulated
1.17upon beginning an unpaid leave of absence approved for more than one year in duration if
1.18the leave of absence is not for the purpose of accepting an unclassified position in state
1.19civil service; (2) permits an employee to receive payment for accumulated
1.20paid time off upon layoff; or (3) permits an employee to receive payment for accumulated
1.21
1.22ineligible to accrue further
1.23 Sec. 2. Minnesota Statutes 2010, section 43A.17, subdivision 11, is amended to read:
2.1 Subd. 11. Severance pay for certain employees. (a) For purposes of this
2.2subdivision, "highly compensated employee" means an employee of the state whose
2.3estimated annual compensation is greater than 60 percent of the governor's annual salary,
2.4and who is not covered by a collective bargaining agreement negotiated under chapter
2.5179A.
2.6(b) Severance pay for a highly compensated employee includes benefits or
2.7compensation with a quantifiable monetary value, that are provided for an employee upon
2.8termination of employment and are not part of the employee's annual wages and benefits
2.9and are not specifically excluded by this subdivision. Severance pay does not include
2.10payments for accumulated
2.11paid time off liquidated to cover the cost of group term insurance. Severance pay for a
2.12highly compensated employee does not include payments of periodic contributions by
2.13an employer toward premiums for group insurance policies. The severance pay for a
2.14highly compensated employee must be excluded from retirement deductions and from any
2.15calculations of retirement benefits. Severance pay for a highly compensated employee
2.16must be paid in a manner mutually agreeable to the employee and the employee's
2.17appointing authority over a period not to exceed five years from retirement or termination
2.18of employment. If a retired or terminated employee dies before all or a portion of the
2.19severance pay has been disbursed, the balance due must be paid to a named beneficiary
2.20or, lacking one, to the deceased's estate. Except as provided in paragraph (c), severance
2.21pay provided for a highly compensated employee leaving employment may not exceed an
2.22amount equivalent to six months of pay.
2.23(c) Severance pay for a highly compensated employee may exceed an amount
2.24equivalent to six months of pay if the severance pay is part of an early retirement incentive
2.25offer approved by the state and the same early retirement incentive offer is also made
2.26available to all other employees of the appointing authority who meet generally defined
2.27criteria relative to age or length of service.
2.28 Sec. 3. Minnesota Statutes 2010, section 43A.181, is amended to read:
2.2943A.181 UNREIMBURSED MEDICAL COSTS
2.30PROGRAM.
2.31 Subdivision 1. Donation of
2.32hours of accrued
2.33by subdivision 2 for the benefit of another state employee. The employee must notify the
2.34employee's agency head of the amount of accrued
2.35donate and the name of the other state employee who is to benefit from the donation. The
3.1agency head shall determine the monetary value of the donated time, using the gross salary
3.2of the employee making the donation. The agency head shall transfer that amount, less
3.3deductions for applicable taxes and retirement contributions, to the account established
3.4by subdivision 2. A donation of accrued
3.5value has been transferred to the account.
3.6 Subd. 2. Benefit account. The
3.7of money transferred under subdivision 1, is administered by the commissioner of
3.8management and budget. Money in the account is appropriated to the commissioner for
3.9purposes of this section.
3.10 Subd. 3. Use of account assets. Expenditures from the account established by
3.11subdivision 2 may be made to pay unreimbursed medical expenses when the total of those
3.12expenses is at least $10,000 and the expenses are incurred because of the illness of or
3.13injury to a state employee or the employee's spouse or dependent. Up to 40 percent of
3.14the funds donated to an individual employee's account may be used to pay for housing
3.15and transportation accessibility costs required by the employee who suffered an injury.
3.16Any money remaining after all of the expenses incurred by the employee named to benefit
3.17from a donation have been paid may be transferred to a general pool. The commissioner
3.18may use the pool to pay unreimbursed medical expenses for another state employee
3.19named to benefit from donated
3.20the monetary value of the donated time.
3.21 Sec. 4. [43A.1812] PAID TIME OFF.
3.22A collective bargaining agreement or compensation plan covering a state employee
3.23may provide for paid time off, but may not separately provide for sick leave or vacation
3.24leave. An employee may not earn more than 160 hours of paid time off in a calendar year.
3.25At the end of each calendar year, an employee may not have a balance of more than 160
3.26hours of paid time off. For purposes of this section, paid time off does not include a
3.27holiday, as defined in section 645.44, subdivision 5.
3.28 Sec. 5. Minnesota Statutes 2010, section 43A.1815, is amended to read:
3.2943A.1815
3.30
3.31 (a) In addition to donations under section
3.32a total of up to 40 hours of accrued
3.33
3.34not be paid for more than 80 hours in a payroll period during which the employee uses
4.1
4.2another state employee's
4.3(b) The recipient employee must receive donations, as available, for a life-threatening
4.4condition of the employee or spouse or dependent child that prevents the employee
4.5from working. A recipient may use program donations retroactively to when all forms
4.6of paid leave are exhausted if the employee has sufficient donations to cover the period
4.7of retroactivity.
4.8(c) An applicant for benefits under this section who receives an unfavorable
4.9determination may select a designee to consult with the commissioner or commissioner's
4.10designee on the reasons for the determination.
4.11 (d) The commissioner shall establish procedures under section
4.124
4.13individual eligibility status, and other topics related to administration of this program.
4.14 Sec. 6. Minnesota Statutes 2010, section 465.72, is amended to read:
4.15465.72 SEVERANCE PAY.
4.16 Subdivision 1. Payment; limits. Except as may otherwise be provided in Laws
4.171959, chapter 690, as amended, a county, city, township, school district or other
4.18governmental subdivision may pay severance pay to its employees and adopt rules for
4.19the payment of severance pay to an employee who leaves employment. Severance
4.20pay does not include compensation for accumulated
4.21payments in the form of periodic contributions by an employer toward premiums for
4.22group insurance policies for a former employee. The severance pay must be excluded
4.23from retirement deductions and from any calculations in retirement benefits. Severance
4.24pay must be paid in a manner mutually agreeable to the employee and employer over
4.25a period not to exceed five years from retirement or termination of employment. If a
4.26retired or terminated employee dies before all or a portion of the severance pay has been
4.27disbursed, that balance due must be paid to a named beneficiary or, lacking one, to the
4.28deceased's estate. Severance pay provided for an employee leaving employment may not
4.29exceed an amount equivalent to one year of pay.
4.30 Sec. 7. Minnesota Statutes 2010, section 465.722, subdivision 2, is amended to read:
4.31 Subd. 2. Limits on severance pay. Notwithstanding any contrary provision of
4.32section
4.33benefits or compensation with a quantifiable monetary value, that are provided for an
4.34employee upon termination of employment and are not part of the employee's annual
5.1wages and benefits and are not specifically excluded by this subdivision. Severance pay
5.2shall not include payments for accumulated
5.3off, and accumulated
5.4insurance provided under section
5.5highly compensated employee does not include payments of periodic contributions by
5.6an employer toward premiums for group insurance policies. The severance pay for a
5.7highly compensated employee must be excluded from retirement deductions and from any
5.8calculations of retirement benefits. Severance pay for a highly compensated employee
5.9must be paid in a manner mutually agreeable to the employee and the governing body
5.10of the local unit of government over a period not to exceed five years from retirement
5.11or termination of employment. If a retired or terminated employee dies before all or a
5.12portion of the severance pay has been disbursed, the balance due must be paid to a named
5.13beneficiary or, lacking one, to the deceased's estate. Except as provided in subdivision 3,
5.14severance pay provided for a highly compensated employee leaving employment may
5.15not exceed an amount equivalent to six months of wages.
5.16 Sec. 8. [471.657] PAID TIME OFF.
5.17A collective bargaining agreement or compensation plan covering an employee
5.18of a statutory or home rule charter city, county, town, school district, metropolitan or
5.19other regional agency, or other political subdivision may provide for paid time off, but
5.20may not separately provide for sick leave or vacation leave. An employee may not earn
5.21more than 160 hours of paid time off in a calendar year. At the end of each calendar
5.22year, an employee may not have a balance of more than 160 hours of paid time off. For
5.23purposes of this section, paid time off does not include a holiday, as defined in section
5.24645.44, subdivision 5.
5.25 Sec. 9. Minnesota Statutes 2010, section 471.66, is amended to read:
5.26471.66 VACATIONS.
5.27 Subdivision 1. With or without pay. The governing body of each city and town in
5.28the state of Minnesota, however organized, may by resolution or ordinance provide for the
5.29granting of paid time off and for the granting of vacations
5.30regularly employed employees or officers, upon such terms and under such conditions as
5.31said governing body may determine, and subject to section 471.657 and subject to such
5.32requirements as to length of service with such municipality as said governing body may
5.33require.
6.1 Subd. 2. No retroactivity. Nothing in subdivision 1 shall be construed as retroactive
6.2in its purpose or intent so as to give the governing body of any such city or town the right
6.3to grant
6.4to the enactment of such ordinance or resolution.
6.5 Subd. 3. Elected officials. No elected official of a statutory or home rule charter
6.6city, county, town, school district, metropolitan or regional agency, or other political
6.7subdivision of this state, may receive monetary compensation for unused
6.8
6.9official from taking
6.10by resolution or ordinance of the governing body of a statutory or home rule charter
6.11city, county, town, school district, metropolitan or regional agency, or other political
6.12subdivision of this state, subject to section 471.657.
6.13 Sec. 10. EFFECTIVE DATE.
6.14Sections 1 to 9 are effective July 1, 2013. For an employee whose vacation, sick
6.15leave, or paid time off balances exceed the maximum permissible accumulation specified
6.16in section 4 or 8 on that date, the maximum permissible balance is the person's balance
6.17on that date. The higher balance is authorized only during the person's employment with
6.18the person's employer as of July 1, 2013.
