HF192 Summary

• Establishes a compensation freeze for legislative and executive branch state employees effective upon enactment, prohibiting all forms of compensation increases including cost-of-living adjustments, step and lane changes, and employer contributions to benefits until new compensation structure is implemented.

• Requires the Commissioner of Management and Budget to contract for a compensation study comparing state employee total compensation to private sector positions with similar skill, effort, responsibilities, and working conditions, with results due by March 1, 2012, and implementation by July 1, 2012.

• Creates an employee gainsharing program providing one-time bonus compensation (up to 10 percent of documented first-year savings) to employees whose suggestions or involvement result in documented cost-savings to the state.

• Removes restrictions on state agencies contracting with private vendors by eliminating the requirement to certify that no current state employees are able and available to perform the work, while allowing employee groups to compete for contracts without assessment of statewide or agency indirect costs.

• Amends the performance appraisal system to tie individual pay increases to performance evaluations, prohibiting automatic step and lane increases or cost-of-living adjustments unless supervisors certify satisfactory performance, and requires at least 5 percent of base salary to be paid as performance-based bonus during fiscal years 2012-2013.