MN HF5

Prohibits all state employee salary and wage increases effective July 1, 2011, including across-the-board increases, cost-of-living adjustments, step increases, longevity increases, and lump-sum payments.

Allows salary increases only for employees who are promoted or transferred to positions with greater responsibilities and higher salary or wage rates.

Prevents state appointing authorities from entering into collective bargaining agreements or compensation plans that increase salaries or wages in prohibited ways.

Prohibits either state appointing authorities or employee representatives from requesting interest arbitration related to prohibited salary or wage increases, and prevents arbitrators from issuing awards that would increase compensation in violation of the freeze.

Voids contract terms in effect on June 30, 2011, to the extent they would provide prohibited salary or wage increases after that date.