SF4859
Additional compensation authorization to certain state employees when an agency does not make a scheduled payroll payment
Legislative Session 94 (2025-2026)
Related bill: HF4648
AI Generated Summary
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
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 25, 2026 | Senate | Action | Introduction and first reading | ||
| March 25, 2026 | Senate | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [
"Adds explicit exceptions and procedures for late payroll payments, including payment for hours worked with exemptions for certain leaves, grievances, and penalty distributions."
],
"removed": [],
"summary": "This bill amends Minn. Stat. 2024, §16A.17, subd. 8 to add procedures and carve out exceptions for late payroll payments, clarifying that compensation may be paid for hours worked with exceptions for leave under a collective bargaining agreement, leave under a plan under §43A.18 or the rules of the Department of Management and Budget, or to resolve a formal employee grievance, or to distribute a financial penalty paid by an agency for late payroll payments when a penalty is required under a collective bargaining agreement.",
"modified": [
"Revises the existing subsection 8 to specify exceptions and related procedural guidance."
]
},
"citation": "16A.17",
"subdivision": "8"
},
{
"analysis": {
"added": [
"Cross-references §43A.18 to incorporate leaves/plans under that statute as exceptions to late payroll payment provisions."
],
"removed": [],
"summary": "This bill references Minn. Stat. §43A.18 (collective bargaining and related plans/rules) to permit leaves or plans under that statute to be used as exceptions to the late payroll payment rules.",
"modified": [
"Clarifies interaction between the late payroll payment provision and §43A.18 provisions."
]
},
"citation": "43A.18",
"subdivision": ""
}
]Progress through the legislative process
In Committee