1997 Minnesota Statutes

     43A.17 Salary limits, rates, ranges and exceptions. 

    Subdivision 1.    Salary limits.  As used in 
 subdivisions 1 to 9, "salary" means hourly, monthly, or annual 
 rate of pay including any lump-sum payments and cost-of-living 
 adjustment increases but excluding payments due to overtime 
 worked, shift or equipment differentials, work out of class as 
 required by collective bargaining agreements or plans 
 established under section 43A.18, and back pay on reallocation 
 or other payments related to the hours or conditions under which 
 work is performed rather than to the salary range or rate to 
 which a class is assigned.  For presidents of state 
 universities, "salary" does not include a housing allowance 
 provided through a compensation plan approved under section 
 43A.18, subdivision 3a. 

    The salary, as established in section 15A.0815, of the head 
 of a state agency in the executive branch is the upper limit on 
 the salaries of individual employees in the agency.  However, if 
 an agency head is assigned a salary that is lower than the 
 current salary of another agency employee, the employee retains 
 the salary, but may not receive an increase in salary as long as 
 the salary is above that of the agency head.  The commissioner 
 may grant exemptions from these upper limits as provided in 
 subdivisions 3 and 4. 

    Subd. 2.    General compensation.  For classes or 
 positions covered under the provisions of section 43A.18, 
 subdivision 1, the commissioner shall negotiate compensation.  
 For classes or positions covered under the provisions of section 
 43A.18, subdivisions 2 and 3, the commissioner shall establish 
 compensation.  Employees covered under section 43A.18 shall 
 receive salary at the appropriate single rate or within the 
 limits of the salary range to which their class is assigned or 
 their position compared except for any lump sum payments 
 including cost of living lump sum payments.  The commissioner 
 may grant further exemptions from this subdivision as provided 
 in subdivisions 3, 5, 6, and 7.  

    Subd. 3.    Unusual employment situations.  Upon the 
 request of the appointing authority, and when the commissioner 
 determines that changes in employment situations create 
 difficulties in attracting or retaining employees, the 
 commissioner may approve an unusual employment situation 
 increase to advance an employee within the compensation plan.  
 The action must be consistent with applicable provisions of 
 collective bargaining agreements or plans adopted under section 
 43A.18.  The commissioner shall review each proposal giving due 
 consideration to salary rates paid to other employees in the 
 same class and agency and may approve any request which in the 
 commissioner's judgment is in the best interest of the state.  
 If the commissioner determines that the position requires 
 special expertise necessitating a higher salary to attract or 
 retain qualified persons, the commissioner may grant an 
 exemption not to exceed 120 percent of the salary of the head of 
 the agency or the maximum rate established for the position, 
 whichever is less.  

    Subd. 4.    Specialists.  (a) The commissioner may 
 without regard to subdivision 1 establish special salary rates 
 and plans of compensation designed to attract and retain 
 exceptionally qualified doctors of medicine.  These rates and 
 plans shall be included in the commissioner's plan.  In 
 establishing salary rates and eligibility for nomination for 
 payment at special rates, the commissioner shall consider the 
 standards of eligibility established by national medical 
 specialty boards where appropriate.  The incumbents assigned to 
 these special ranges shall be excluded from the collective 
 bargaining process. 

    (b) The commissioner may without regard to subdivision 1, 
 but subject to collective bargaining agreements or compensation 
 plans, establish special salary rates designed to attract and 
 retain exceptionally qualified information systems staff. 

    Subd. 5.    Salary on demotion; special cases.  The 
 commissioner may, upon request of an appointing authority, 
 approve payment of an employee with permanent status at a salary 
 rate above the maximum of the class to which the employee is 
 demoted.  The commissioner shall take such action as required by 
 collective bargaining agreements or plans pursuant to section 
 43A.18.  If the action is justified by the employee's long or 
 outstanding service, exceptional or technical qualifications, 
 age, health, or substantial changes in work assignment beyond 
 the control of the employee, the commissioner may approve a rate 
 up to and including the employee's salary immediately prior to 
 demotion.  Thereafter, so long as the employee remains in the 
 same position, the employee shall not be eligible to receive any 
 increase in salary until the employee's salary is within the 
 range of the class to which the employee's position is allocated 
 unless such increases are specifically provided in collective 
 bargaining agreements or plans pursuant to section 43A.18.  

    Subd. 6.    Salary on transfer.  The commissioner may 
 authorize an employee transferring between two classes 
 established as equivalent for purposes of transfer to retain a 
 rate of compensation above the maximum of the range of the class 
 to which the employee is transferring.  The commissioner shall 
 take such action as required by a collective bargaining 
 agreement or plans pursuant to section 43A.18.  Thereafter, so 
 long as the employee remains in the same class, the employee 
 shall receive an increase in salary only as provided pursuant to 
 applicable collective bargaining agreements or plans pursuant to 
 section 43A.18, until the employee's salary is within the range 
 of the class to which the position is allocated.  

    Subd. 7.    Injured on duty pay.  Notwithstanding 
 section 176.021, subdivision 5, the commissioner may provide for 
 injured on duty pay through collective bargaining agreements or 
 plans pursuant to section 43A.18.  

    Subd. 8.    Accumulated vacation leave.  The 
 commissioner of employee relations 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 vacation leave 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 permits an employee to 
 receive payment for accumulated vacation leave 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. 

    Subd. 9.    Political subdivision compensation limit.  
 The salary and the value of all other forms of compensation of a 
 person employed by a statutory or home rule charter city, 
 county, town, school district, metropolitan or regional agency, 
 or other political subdivision of this state, or employed under 
 section 422A.03, may not exceed 95 percent of the salary of the 
 governor as set under section 15A.082, except as provided in 
 this subdivision.  Deferred compensation and payroll allocations 
 to purchase an individual annuity contract for an employee are 
 included in determining the employee's salary.  Other forms of 
 compensation which shall be included to determine an employee's 
 total compensation are all other direct and indirect items of 
 compensation which are not specifically excluded by this 
 subdivision.  Other forms of compensation which shall not be 
 included in a determination of an employee's total compensation 
 for the purposes of this subdivision are: 

    (1) employee benefits that are also provided for the 
 majority of all other full-time employees of the political 
 subdivision, vacation and sick leave allowances, health and 
 dental insurance, disability insurance, term life insurance, and 
 pension benefits or like benefits the cost of which is borne by 
 the employee or which is not subject to tax as income under the 
 Internal Revenue Code of 1986; 

    (2) dues paid to organizations that are of a civic, 
 professional, educational, or governmental nature; and 

    (3) reimbursement for actual expenses incurred by the 
 employee which the governing body determines to be directly 
 related to the performance of job responsibilities, including 
 any relocation expenses paid during the initial year of 
 employment. 

    The value of other forms of compensation shall be the 
 annual cost to the political subdivision for the provision of 
 the compensation.  The salary of a medical doctor or doctor of 
 osteopathy occupying a position that the governing body of the 
 political subdivision has determined requires an M.D. or D.O. 
 degree is excluded from the limitation in this subdivision.  The 
 commissioner may increase the limitation in this subdivision for 
 a position that the commissioner has determined requires special 
 expertise necessitating a higher salary to attract or retain a 
 qualified person.  The commissioner shall review each proposed 
 increase giving due consideration to salary rates paid to other 
 persons with similar responsibilities in the state and nation.  
 The commissioner may not increase the limitation until the 
 commissioner has presented the proposed increase to the 
 legislative coordinating commission and received the 
 commission's recommendation on it.  The recommendation is 
 advisory only.  If the commission does not give its 
 recommendation on a proposed increase within 30 days from its 
 receipt of the proposal, the commission is deemed to have 
 recommended approval. 

    Subd. 10.    Local elected officials; certain compensation 
 prohibited.  The compensation plan for an elected official of 
 a statutory or home rule charter city, county, town, or school 
 district may not include a provision for vacation or sick 
 leave.  The salary of an official covered by this subdivision 
 may not be diminished because of the official's absence from 
 official duties because of vacation or sickness. 

    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 
 vacation, accumulated sick leave, and accumulated sick leave 
 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. 

    Subd. 12.    Actuaries.  Actuaries employed by the 
 department of health, human services, or commerce are not 
 subject to subdivision 1. 

    HIST: 1981 c 210 s 17; 1982 c 560 s 26; 1983 c 299 s 12-14; 
 1984 c 462 s 27; 1Sp1985 c 17 s 7; 1986 c 444; 1988 c 667 s 7,8; 
 1990 c 571 s 20,21; 1992 c 505 s 1; 1992 c 549 art 5 s 2; 1993 c 
 315 s 5,6; 1993 c 345 art 5 s 2; 1995 c 248 art 2 s 7; 1996 c 
 425 s 4; 1997 c 202 art 2 s 33; 2Sp1997 c 3 s 9,10