MN HF756

Amends Minnesota Statutes section 43A.20 to require the performance appraisal and bonus pay system include three components: evaluation of individual employee performance relative to goals, evaluation of the employee's program performance toward targeted outcomes, and evaluation of the entire agency's performance toward targeted outcomes.

Eliminates the exclusion for union-represented employees from performance-based pay increases, making performance evaluations the basis for all employee pay increases and requiring supervisor certification that individual performance justifies salary increases.

Prohibits employees from receiving salary increases based on cost of living or step/lane progression unless their supervisor certifies satisfactory individual performance that justifies additional public spending on compensation.

Requires during the biennium ending June 30, 2013, that at least five percent of total base salary and wages be withheld and paid only as a performance bonus after completion of the appraisal and determination that performance is satisfactory.

Effective July 1, 2011, with provisions applying to collective bargaining agreements entered into on or after that date.