SB 23-180

Senate Bill 23-180, which has been approved by the governor and will take effect on August 7, 2023, changes how state employees are paid. It reverses a previous decision that required all state employees to be paid twice a month starting in 2017. Instead, it returns to the original payment schedule where most state employees receive their salaries monthly, while some continue to get paid every two weeks. This bill also removes a loan program and other provisions related to transitioning to the bi-monthly payroll system that never came into effect. The change will affect how current and future state employees are compensated but won't impact higher education institutions' pay practices.

Official Summary

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.)

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