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HB 1170

AN ACT to amend and reenact section 54-06-14 of the North Dakota Century Code, relating to state employee annual leave; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Landon Bahl and 7 co-sponsors

North Dakota HB 1170 grants new hires 40 hours of “new hire leave” usable in the first year, not paid out at separation, while adjusting annual and sick leave rules for permanent s

Filed with Secretary Of State 04/11
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WeVote Research Nonpartisan
Bill Summary · HB 1170

Summary — HB 1170 (North Dakota)

Amends and reenacts NDCC § 54‑06‑14 (annual leave and sick leave for state employees)

Main purpose

HB 1170 revises statutory rules governing annual and sick leave for permanent state employees (those not employed under a written contract of hire), adds a limited “new hire” leave credit, clarifies employer discretion at hire for leave grants (including for hard‑to‑fill positions), and restates existing payout and continuity rules for sick‑leave compensation. The bill takes effect May 1, 2026.

Key provisions (specific changes)

  • Codifies coverage: applies to individuals in permanent state employment who are not under a written contract of hire (amends and reenacts NDCC § 54‑06‑14).
  • New hire leave: upon hire, each covered employee is granted 40 hours of “new hire leave” to be used within the first year of employment. Any unused new hire leave after year one is eliminated. New hire leave:
    • Is not “earned” paid time off; and
    • Is not paid out at separation.
  • Annual leave accrual:
    • Must fall within a range of 1 to 2 working days per month (to be defined by employing‑unit rules, generally based on tenure).
    • Employing units may grant annual leave at hire within that 1–2 day/month range (i.e., adjust initial leave based on experience/tenure).
    • Employing units may grant an amount at hire that exceeds the standard tenure‑based amount if the position was previously identified as a “hard‑to‑fill” occupation under NDCC § 54‑06‑31(5) and the agency has met § 54‑06‑31(1) requirements.
  • Sick leave accrual: must be within 1 to 1.5 working days per month, based on tenure and as set by unit rules.
  • Pay and sick‑leave payout:
    • Annual and sick leave are compensated at full pay while used during employment.
    • Employees with ≥10 continuous years of state employment are entitled to a lump‑sum payment equal to one‑tenth of the pay attributed to their unused sick leave (computed at final salary/wage; rate = 1 hour pay per hour unused sick leave).
    • Continuity of state employment for payout purposes is defined (includes reinstatement within two years after reduction‑in‑force and specified voluntary leave limits).
  • Rulemaking and filing: each employing agency/unit must adopt rules governing annual and sick leave and file those rules (and amendments) with the Office of Management and Budget.

Who is affected

  • Primary: permanent state employees of North Dakota who are not employed under a written contract of hire.
  • Secondary: state agencies, units, and entities (human resources, payroll) — required to adopt rules, manage the new hire leave credit, and administer accruals and payouts; Office of Management and Budget (filing requirement).
  • Employers may have discretion to offer higher initial annual leave for hard‑to‑fill positions (subject to § 54‑06‑31 conditions).

Procedural / timeline notes

  • Statutory section amended and reenacted as part of this act.
  • Effective date: May 1, 2026.
  • Sponsors (bill text versions list): Representatives Motschenbacher, Bahl, Christy, Fisher, Dressler; Senators Cleary, Dwyer, Gerhardt.
  • Enrollment documents show House and Senate passage (House vote recorded: Yeas 61, Nays 29; Senate vote recorded: Yeas 36, Nays 10).

Fiscal/administrative impact (concise)

The bill does not appropriate funds. Administrative impacts include implementing the 40‑hour new hire leave credit, updating agency leave rules and payroll systems, and accommodating any additional upfront leave usage or larger initial annual‑leave grants for qualifying hard‑to‑fill hires. The net fiscal effect depends on agencies’ rule choices and employees’ use of the new hire leave; no statewide cost estimate is provided in the bill text.

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

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