House Bill 595 Summary

• Increases award limits for nonclassified state officers and employees from $25,000 to $25,000 in meritorious service, cost savings, and other pay categories per fiscal year, with exceptions for extraordinary circumstances requiring state board of examiners approval.

• Establishes retention bonuses for both classified and nonclassified employees requiring affirmative certification of meritorious service after at least six months of service, with authorization for legal remedies including vacation fund deductions if employee resigns during the designated retention period.

• Revises compensation advancement provisions to base pay increases on performance, internal equity, and external market changes through methods including ongoing increases, temporary or conditional increases, and market-related payline moves to address salary compression.

• Authorizes nonperformance-related pay of up to 5% of base pay or $5,000 per fiscal year for classified employees when necessary to obtain or retain qualified personnel due to market conditions, with prior approval from division of human resources and division of financial management.

• Becomes effective July 1, 2022, as an emergency measure.