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HF 4648

Additional compensation to state employees when an agency does not make a scheduled payroll payment authorized.

2025-2026 Regular Session Introduced by Jess Hanson

The bill allows penalties paid by agencies for late payroll to be redistributed as additional compensation to affected state employees.

Introduction and first reading, referred to State Government Finance and Policy
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Bill Summary · HF 4648

Summary of HF 4648 (2025-2026) – Minnesota

Purpose and intent

HF 4648 authorizes additional compensation to state employees when an agency fails to make a scheduled payroll payment. The bill amends the state payroll statute to allow for the distribution of a financial penalty collected from an agency responsible for late payroll issuance to affected employees, as a form of compensation.

Key provisions and changes

  • Statutory reference updated: Amends Minnesota Statutes 2024, section 16A.17, subdivision 8 (Exceptions).

  • Existing payroll payment framework: The commissioner is responsible for prescribing procedures to ensure payment is made for hours worked, with certain exceptions (e.g., leave).

  • New exception provision (partial): The bill lists additional circumstances under which pay can be issued, aligning with existing paid leave and grievance procedures:

    1. Leave under a collective bargaining agreement.
    2. Leave under a plan pursuant to section 43A.18 or the Department of Management and Budget rules.
    3. To resolve a formal employee grievance permitted by law or collective bargaining agreement.

  • New mechanism for late payroll penalties: The bill adds a new item permitting the distribution of a financial penalty paid by an agency responsible for late payroll issuance to the employees affected by the late payment, when such penalties are required under a collective bargaining agreement.

  • Policy objective: Create a remedy for employees when payroll is not issued on time by allocating penalties collected from responsible agencies to those employees as additional compensation.

Who is affected

  • State employees: Directly affected in cases where payroll is delayed by a state agency.
  • Employing agencies: Responsible for late payroll penalties under applicable collective bargaining agreements; these penalties may be redistributed to affected employees.
  • Labor relations framework: Affects how penalties under collective bargaining agreements are applied and how compensation is distributed when payroll is late.

Procedural and timeline aspects

  • Introduction and referral: HF 4648 was introduced on March 25, 2026, and referred to the State Government Finance and Policy committee (as of the bill’s first reading).

  • Sponsors: Primary sponsor and a co-sponsor are listed (Co-sponsor: Jess Hanson).

  • Effective date and implementation: The text provided does not specify an effective date or detailed implementation timeline beyond the statutory amendment language. Final implementation would depend on enactment and any administrative rule updates by the commissioner.

Overall assessment

HF 4648 seeks to address payroll lateness by:
- Recognizing late-pay penalties as a potential source of additional compensation for affected employees.
- Ensuring compensation for hours worked and addressing time-sensitive pay through clarified exceptions and grievance mechanisms.
- Providing a structured approach for distributing penalties tied to late payroll issuance within the framework of collective bargaining agreements.

Readers should monitor the bill’s progression for any changes to the exact language, implementation details, and the scope of penalties and compensation distributions as it moves through the legislative process.

Compiled from official sources — confirm details with the bill’s official record.

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