Restore Current Pay Periods For State Employees

The majority of state employees who are paid through the state's payroll system (state employees) are paid monthly and some state employees are paid biweekly. In 2015, in anticipation of the implementation of a new payroll system for state employees, the general assembly enacted an act to require that all state employees be paid twice a month for pay periods that began on or after July 1, 2017. Because the payroll system that would have paid state employees twice a month was not implemented, the act:

• Repeals the requirement that state employees be paid twice a month and restores the monthly and biweekly pay periods;
• Repeals the one-time loan program that would have allowed any state employee to apply to the department of personnel for a loan to assist the employee in July 2017, when the transition to the twice a month payroll system would have created a 2-week lag in state employees' pay; and
• Repeals the state personnel director's authority to delay the date by which state employees would be paid twice a month, as the state personnel director no longer intends to implement a twice a month payroll system.

In addition, state employee salaries that are paid on a monthly basis are paid on the last working day of the month; except that the salary for the month of June is paid on the first working day of July (pay-day shift). The act codifies current practice by specifying that the pay-day shift does not apply to institutions of higher education.

APPROVED by Governor May 1, 2023

EFFECTIVE August 7, 2023

NOTE: This act was passed without a safety clause and takes effect 90 days after sine die.
(Note: This summary applies to this bill as enacted.)