Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 2142

as introduced - 87th Legislature (2011 - 2012) Posted on 02/08/2012 12:15pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/08/2012

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22
1.23 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27
2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20
3.21 3.22 3.23 3.24 3.25 3.26 3.27
3.28 3.29 3.30 3.31 3.32 3.33 3.34 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13
4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29
4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15
5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24
5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12
6.13 6.14 6.15 6.16 6.17 6.18

A bill for an act
relating to public employment; specifying conditions for paid time off; amending
Minnesota Statutes 2010, sections 43A.17, subdivisions 8, 11; 43A.181;
43A.1815; 465.72; 465.722, subdivision 2; 471.66; proposing coding for new
law in Minnesota Statutes, chapters 43A; 471.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 43A.17, subdivision 8, is amended to read:


Subd. 8.

Accumulated deleted text begin vacationdeleted text end leave.

The commissioner shall not agree to a
collective bargaining agreement or recommend a compensation plan pursuant to section
43A.18, subdivisions 1, 2, 3, and 4, nor shall an arbitrator issue an award under sections
179A.01 to 179A.25, if the compensation plan, agreement, or award permits an employee
to convert accumulated deleted text begin vacation leavedeleted text end new text begin paid time offnew text end into cash before separation from
state service.

This section does not prohibit the commissioner from negotiating a collective
bargaining agreement or recommending approval of a compensation plan which: (1)
permits an employee to receive payment for accumulated deleted text begin vacation leavedeleted text end new text begin paid time offnew text end
upon beginning an unpaid leave of absence approved for more than one year in duration if
the leave of absence is not for the purpose of accepting an unclassified position in state
civil service; (2) permits an employee to receive payment for accumulated deleted text begin vacation leavedeleted text end new text begin
paid time off
new text end upon layoff; or (3) permits an employee to receive payment for accumulated
deleted text begin vacation leavedeleted text end new text begin paid time offnew text end if a change in employment results in the employee being
ineligible to accrue further deleted text begin vacation leavedeleted text end new text begin paid time offnew text end .

Sec. 2.

Minnesota Statutes 2010, section 43A.17, subdivision 11, is amended to read:


Subd. 11.

Severance pay for certain employees.

(a) For purposes of this
subdivision, "highly compensated employee" means an employee of the state whose
estimated annual compensation is greater than 60 percent of the governor's annual salary,
and who is not covered by a collective bargaining agreement negotiated under chapter
179A.

(b) Severance pay for a highly compensated employee includes benefits or
compensation with a quantifiable monetary value, that are provided for an employee upon
termination of employment and are not part of the employee's annual wages and benefits
and are not specifically excluded by this subdivision. Severance pay does not include
payments for accumulated deleted text begin vacation, accumulated sick leave, and accumulated sick leavedeleted text end new text begin
paid time off
new text end liquidated to cover the cost of group term insurance. Severance pay for a
highly compensated employee does not include payments of periodic contributions by
an employer toward premiums for group insurance policies. The severance pay for a
highly compensated employee must be excluded from retirement deductions and from any
calculations of retirement benefits. Severance pay for a highly compensated employee
must be paid in a manner mutually agreeable to the employee and the employee's
appointing authority over a period not to exceed five years from retirement or termination
of employment. If a retired or terminated employee dies before all or a portion of the
severance pay has been disbursed, the balance due must be paid to a named beneficiary
or, lacking one, to the deceased's estate. Except as provided in paragraph (c), severance
pay provided for a highly compensated employee leaving employment may not exceed an
amount equivalent to six months of pay.

(c) Severance pay for a highly compensated employee may exceed an amount
equivalent to six months of pay if the severance pay is part of an early retirement incentive
offer approved by the state and the same early retirement incentive offer is also made
available to all other employees of the appointing authority who meet generally defined
criteria relative to age or length of service.

Sec. 3.

Minnesota Statutes 2010, section 43A.181, is amended to read:


43A.181 UNREIMBURSED MEDICAL COSTS deleted text begin VACATIONdeleted text end DONATION
PROGRAM.

Subdivision 1.

Donation of deleted text begin vacationdeleted text end time.

A state employee may donate up to 12
hours of accrued deleted text begin vacation timedeleted text end new text begin paid time offnew text end in any fiscal year to the account established
by subdivision 2 for the benefit of another state employee. The employee must notify the
employee's agency head of the amount of accrued deleted text begin vacationdeleted text end time the employee wishes to
donate and the name of the other state employee who is to benefit from the donation. The
agency head shall determine the monetary value of the donated time, using the gross salary
of the employee making the donation. The agency head shall transfer that amount, less
deductions for applicable taxes and retirement contributions, to the account established
by subdivision 2. A donation of accrued deleted text begin vacationdeleted text end time is irrevocable once its monetary
value has been transferred to the account.

Subd. 2.

Benefit account.

The deleted text begin vacationdeleted text end new text begin paid time offnew text end benefit account, consisting
of money transferred under subdivision 1, is administered by the commissioner of
management and budget. Money in the account is appropriated to the commissioner for
purposes of this section.

Subd. 3.

Use of account assets.

Expenditures from the account established by
subdivision 2 may be made to pay unreimbursed medical expenses when the total of those
expenses is at least $10,000 and the expenses are incurred because of the illness of or
injury to a state employee or the employee's spouse or dependent. Up to 40 percent of
the funds donated to an individual employee's account may be used to pay for housing
and transportation accessibility costs required by the employee who suffered an injury.
Any money remaining after all of the expenses incurred by the employee named to benefit
from a donation have been paid may be transferred to a general pool. The commissioner
may use the pool to pay unreimbursed medical expenses for another state employee
named to benefit from donated deleted text begin vacationdeleted text end time but whose unreimbursed expenses exceed
the monetary value of the donated time.

Sec. 4.

new text begin [43A.1812] PAID TIME OFF.
new text end

new text begin A collective bargaining agreement or compensation plan covering a state employee
may provide for paid time off, but may not separately provide for sick leave or vacation
leave. An employee may not earn more than 160 hours of paid time off in a calendar year.
At the end of each calendar year, an employee may not have a balance of more than 160
hours of paid time off. For purposes of this section, paid time off does not include a
holiday, as defined in section 645.44, subdivision 5.
new text end

Sec. 5.

Minnesota Statutes 2010, section 43A.1815, is amended to read:


43A.1815 deleted text begin VACATIONdeleted text end new text begin PAID TIME OFFnew text end DONATION deleted text begin TO SICK LEAVE
ACCOUNT
deleted text end .

(a) In addition to donations under section 43A.181, a state employee may donate
a total of up to 40 hours of accrued deleted text begin vacation leavedeleted text end new text begin paid time offnew text end each fiscal year to the
deleted text begin sick leavedeleted text end new text begin paid time offnew text end account of one or more state employees. A state employee may
not be paid for more than 80 hours in a payroll period during which the employee usesdeleted text begin
sick leave
deleted text end new text begin paid time offnew text end credited to the employee's account as a result of a transfer from
another state employee's deleted text begin vacationdeleted text end account.

(b) The recipient employee must receive donations, as available, for a life-threatening
condition of the employee or spouse or dependent child that prevents the employee
from working. A recipient may use program donations retroactively to when all forms
of paid leave are exhausted if the employee has sufficient donations to cover the period
of retroactivity.

(c) An applicant for benefits under this section who receives an unfavorable
determination may select a designee to consult with the commissioner or commissioner's
designee on the reasons for the determination.

(d) The commissioner shall establish procedures under section 43A.04, subdivision
4
, for eligibility, duration of need based on individual cases, monitoring and evaluation of
individual eligibility status, and other topics related to administration of this program.

Sec. 6.

Minnesota Statutes 2010, section 465.72, is amended to read:


465.72 SEVERANCE PAY.

Subdivision 1.

Payment; limits.

Except as may otherwise be provided in Laws
1959, chapter 690, as amended, a county, city, township, school district or other
governmental subdivision may pay severance pay to its employees and adopt rules for
the payment of severance pay to an employee who leaves employment. Severance
pay does not include compensation for accumulated deleted text begin sick leavedeleted text end new text begin paid time offnew text end or other
payments in the form of periodic contributions by an employer toward premiums for
group insurance policies for a former employee. The severance pay must be excluded
from retirement deductions and from any calculations in retirement benefits. Severance
pay must be paid in a manner mutually agreeable to the employee and employer over
a period not to exceed five years from retirement or termination of employment. If a
retired or terminated employee dies before all or a portion of the severance pay has been
disbursed, that balance due must be paid to a named beneficiary or, lacking one, to the
deceased's estate. Severance pay provided for an employee leaving employment may not
exceed an amount equivalent to one year of pay.

Sec. 7.

Minnesota Statutes 2010, section 465.722, subdivision 2, is amended to read:


Subd. 2.

Limits on severance pay.

Notwithstanding any contrary provision of
section 465.72, subdivision 1, severance pay for a highly compensated employee includes
benefits or compensation with a quantifiable monetary value, that are provided for an
employee upon termination of employment and are not part of the employee's annual
wages and benefits and are not specifically excluded by this subdivision. Severance pay
shall not include payments for accumulated deleted text begin vacation, accumulated sick leavedeleted text end new text begin paid time
off
new text end , and accumulated deleted text begin sick leavedeleted text end new text begin paid time offnew text end liquidated to cover the cost of group term
insurance provided under section 471.61 to retiring employees. Severance pay for a
highly compensated employee does not include payments of periodic contributions by
an employer toward premiums for group insurance policies. The severance pay for a
highly compensated employee must be excluded from retirement deductions and from any
calculations of retirement benefits. Severance pay for a highly compensated employee
must be paid in a manner mutually agreeable to the employee and the governing body
of the local unit of government over a period not to exceed five years from retirement
or termination of employment. If a retired or terminated employee dies before all or a
portion of the severance pay has been disbursed, the balance due must be paid to a named
beneficiary or, lacking one, to the deceased's estate. Except as provided in subdivision 3,
severance pay provided for a highly compensated employee leaving employment may
not exceed an amount equivalent to six months of wages.

Sec. 8.

new text begin [471.657] PAID TIME OFF.
new text end

new text begin A collective bargaining agreement or compensation plan covering an employee
of a statutory or home rule charter city, county, town, school district, metropolitan or
other regional agency, or other political subdivision may provide for paid time off, but
may not separately provide for sick leave or vacation leave. An employee may not earn
more than 160 hours of paid time off in a calendar year. At the end of each calendar
year, an employee may not have a balance of more than 160 hours of paid time off. For
purposes of this section, paid time off does not include a holiday, as defined in section
645.44, subdivision 5.
new text end

Sec. 9.

Minnesota Statutes 2010, section 471.66, is amended to read:


471.66 VACATIONS.

Subdivision 1.

With or without pay.

The governing body of each city and town in
the state of Minnesota, however organized, may by resolution or ordinance provide for the
granting of new text begin paid time off and for the granting of new text end vacationsdeleted text begin , with ordeleted text end without pay, to all its
regularly employed employees or officers, upon such terms and under such conditions as
said governing body may determine, and subject to new text begin section 471.657 and subject to new text end such
requirements as to length of service with such municipality as said governing body may
require.

Subd. 2.

No retroactivity.

Nothing in subdivision 1 shall be construed as retroactive
in its purpose or intent so as to give the governing body of any such city or town the right
to grant deleted text begin vacationsdeleted text end new text begin paid time offnew text end based on service of its employees or officers rendered prior
to the enactment of such ordinance or resolution.

Subd. 3.

Elected officials.

No elected official of a statutory or home rule charter
city, county, town, school district, metropolitan or regional agency, or other political
subdivision of this state, may receive monetary compensation for unused deleted text begin vacation or
sick leave
deleted text end new text begin paid time offnew text end accruals. Nothing in this subdivision shall restrict an elected
official from taking deleted text begin vacation or sick leave timedeleted text end new text begin paid time offnew text end that may be provided for
by resolution or ordinance of the governing body of a statutory or home rule charter
city, county, town, school district, metropolitan or regional agency, or other political
subdivision of this statenew text begin , subject to section 471.657new text end .

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 9 are effective July 1, 2013. For an employee whose vacation, sick
leave, or paid time off balances exceed the maximum permissible accumulation specified
in section 4 or 8 on that date, the maximum permissible balance is the person's balance
on that date. The higher balance is authorized only during the person's employment with
the person's employer as of July 1, 2013.
new text end