HB 314 Summary

• Establishes new section 124.16 limiting annual salary or wage increases for state employees to the percentage increase in the Consumer Price Index (CPI), rounded to the nearest tenth.

• Caps maximum salary increases at 5% even if CPI increases exceed that amount; prohibits any salary increase if CPI decreases or does not increase.

• Exempts from salary caps: promotions or position transfers, and one-time catch-up increases for employees whose salaries were frozen due to state financial conditions.

• Makes salary restrictions binding on collective bargaining agreements by adding section 124.16 compliance to the list of state laws that prevail over conflicting union contract provisions under section 4117.10.

• Applies restrictions to pay progression through established salary schedules, requiring those increases to comply with the CPI limitation.