STATE OF MINNESOTA

OFFICE OF HIGHER EDUCATION

UNCLASSIFIED PERSONNEL COMPENSATION PLAN

Effective

July l 201+1_, tlu·ough June 30, 20 B 2

(FY 20 1.1~ - FY 2012~)

TABLE OF CONTENTS

Title Page

A. Purpose ....... . ... .. .................................... . ............. . .............................. ..

B. Appoint1nents ...... ....... ... ... ....................... .. ............. .. ............................ ..

C. Definition and responsibility ........................ .. ..... .............. ...... .... ........ ......... 1-2

D. Work Schedule .......... ........ . ...... ... ......... ....... .... . ... .... .... ....... ............... ....... 2-J

E. Termination of Appointment. .............................................. .. .. ....... ....... ... .... . ZJ

F. Salary Ranges and Salaries ............. . ......................................................... .... 3-.1~

G. Advancement through the Salary Range ........................................................... ~-2.6

H. Health/Dental Premium Account..... .. ....... . . ...... ......... ... ...................... .... ...... 2._6

r. Medical/Dental Expense Account. ............. ..... ................. .............. ........... ..... 2.6 J. Dependent Care Expense Account. ......... ... .................................... .. ............... §.+

K. Transit Expense Account........ . .............. . .. .. ................ .... ........................... §.+ L. Health Care Savings Plan ............. . ........................................................ .. ..... _-§.+ M. Granting of Achievement Awards................................................................ . §.+

N. Salary Administration Procedures ...................... .. .. ................... ..... .............. ~ . 6+1& 0. Vacation Leave ........................ . ....... ...................................... ............... . ... _-1&-2-l..Q P. Sick Leave .. ....... ......... .. ... . . .............. .. .......... . ...... .. ...... ...... . .............. ··· ~ · . . _-2-l4-

l+_Q Q. Holidays ........ .. ....................... .. .... ..... ..... ...... ............................. ......... ... 1+_Q-1;!.1 R. Severance Pay ............ ...... . . . ........................................... . .... . . ... . . ........ .. .... 11;!.-

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S. Other Leaves of Absence ............................................................................. 1ZJ-

U4 T. Other Benefits .................. .. ...................................................................... 12.4 U. Effective Date .......... . .......... ...... . ..... ... ........... . ........... . ........ .......... .... . ....... 142.

Appendix A Vacation Leave Accrual Schedule .. .. .. .. . .. . .. . .. . .. .. .. .. .. .. .. . .. .. .. . .. .. . 1 ~.1

Appendix B Sick Leave Accrual Schedule ............ . . .. .. ........ ....... .. ................ 162.

Appendix C Pro Rata Schedule for Holiday Pay ........ .................................... . 11§.

Appendix D Expansion of Sick Leave Benefits Letter ......... . .. ..... .. .... ...... . .... ..... . 17

UNCLASSIFIED PERSONNEL COMPENSATION PLAN

A. Purpose

The purpose of this Plan is to comply with applicable statutes and to set forth clear Office of Higher Education (ORE) policies within which human resources may be fairly and effectively managed to achieve the following objectives:

1. To promote and foster effective management of the office and to ensure professional staff development;

2. To achieve and maintain a competitive compensation position in a special employment market so as to attract and retain qualified personnel, and to attain and ensure equity with Minnesota public postsecondary education systems and state agencies;

3. To ensure that compensation is internally consistent in terms of relative responsibility and individual performance; and

4. To maintain maximum flexibility so that the office may respond to changing mandates or special assignments from the legi slature and governor.

B. Appointments

Unclassified personnel shall be appointed by the OHE DirectorCommiss ioner and shall serve at the pleasure of the OHE DirectorCommissioner.

C. Definition and Responsibility

1. Definition.

For the purpose of this Plan, unclassified employees are those described in Minnesota Statutes Section l36A.03, including entry leve l personnel who may be required for general or specialized staff assistance appointed in accordance with Minnesota Statutes Section 136A.03.

For the purpose of this Plan, the following definitions may apply:

a. A "full-time unclassified employee" means an employee who is scheduled to work an average of eighty (80) hours per bi-weekly payroll period.

b. A " part-time unclassified employee" means an employee who is scheduled to work on a regular and recurring schedule of less than eighty (80) hours in a bi-weekly payroll period.

c. A " temporary unclassified employee" means an employee who is appointed with a definite ending date. A temporary appointment may not exceed a total of twelve (12) months. A temporary employee will not rece ive vacation, s ick leave, a floating holiday or insurance benefi ts.

OI-IE Unclassified Plan 2011± - 2012J 1

2 . Responsibility.

Members of the OHE staff who serve in the unclassified service shall be regarded as profess ional employees who are selected for their special competence and ability to fulfill responsibilities in research, planning, or administration of programs and activities of the OHE. As profess ional employees, unclass ified persotmel will be expected to perform those duties which reasonably can be included among the responsibilities of their respective positions as defined and interpreted by and under the general supervision of the OHE DirectorCommissioner. It is recognized that the nature of the respons ibilities for w hich such profess ional personnel are appointed is defi ned in terms of the activ ities to be performed with objectives to be accomplished.

D. Worl\. Schedule

1. Standard Work Schedules. It is recognized that because of the nature of the ir work, employees covered by this agreement may be required to work varied hours, work on holidays and weekends, making the mainta ining of consistent sta rting and stopping times or the assignment of the number of hours worked in one day sometimes imposs ible. Employee's hours may be adjusted in accordance with circumstances and with the approva l of the Appointing Authority or hi s/her designee.

2. Flexible Work Schedules. Upon approval of Appointing Authority or his/her des ignee and employee flex-sched ule may be established or terminated.

3. E mergency Work Schedules. In emergency s ituations, the Appointing Authority or his/her designee may change work schedules without advance notice for such time periods as the Appointing Authority or his/her designee determines that alternative schedules are necessary.

4. Work Week Defined. A fixed and regu larly recurring period of seven fficonsecutive calendar days that are chosen by the Appointing Authority or his/her des ignee.

~Overtime E ligibility. Due to their exempt status, OHE professiona l personnel are exempt from the provisions of the Federal Fair Labor Standards Act and are normally not eligible for ove1time pay or compensatory time off with pay. , ove1time must be approved in advance by the emp loyee's supervisor and the Appointing Authority or his/her designee for overtime as provided below:

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5. Non exempt employees. The Appointing Authority or his/her designee may upon investigation designate specific employees to be non e><empt under the federa l fair Labor Standards Act and therefore be subject to the overtime provisions of the law.

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5. "Non exempt employees are e ligible for overtime for all hours v.'orked in e)teess of 40 during the seven day work period shall be compensated at the rate of time and one half ( l l/2) .

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5. Exempt and exeluded employees. Unclassified emp loyees are not normally eligible for overtime pay or compensatory time off with pay. If .1! the work-re lated emergency situation is declared by the Commiss ioner of Minnesota Management & Budget, the Commiss ioner of Minnesota Management & Budget shall determine if employees shall be paid for overtime. Emergencies are defi ned as nonrecurring s ituations that could not be anticipated or planned . for. E mergencies do not include seasona l fluctuation in workload (e .g . Legis lature in sess ion, budget deve lopment, etc.) which occurs on a regu lar and reasonab ly predictable basis. If

OHE Unclassif ied Plan 201.2,-±-1~~ 2

compensat ion is authori zed, payment sha ll be at straight time in e ither cash or compensatory time at the Appoint ing Authority's option.

Qyertime Rates and Payments. At his/her discretion, the Appointing Authority or his/her designee may authori:z:e exempt emp lo~·ees to be compensated at the rate of one hour of compensatory tit:ne for evet)' hour worked in e>tcess of eighty (80) hours in a pay period .

E. Termination of Appointment

Employment of personnel serving in the unclassified service may be term ina ted by the Appointing A uthority prov ided that written notice of termination norma lly shall be issued to the employee at least thirty (30) calendar days prior to the termination date . An unc lass ified employee who w ishes to resign shall be expected to submit his/her resi gnation to the OHE DirectorCommissioner at least thirty (30) calendar days prior to the effective date of his res ignation. Severance pay shall be in accordance with the provis ions of this Plan as outlined in Section R.

F. Salary Ranges and Salaries

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1. The OHE DirectorCommissioner shall be appointed by and shall serve at the pleasure of the Governor._-The Governor sets the OHE DirectorCommissioner 's sa lary rate within the salary limits as specified in MN Statutes 15A.0815, Subd.l . The actua l salat)' established for the OHE Director shall serve as the upper limit of compensation for all unclassified employees covered by th is P lan. If unusua l employment situations create difficulties in attracting 'or retaining unclassified employees, and it is the judgment ofthe OHE Director to be in the best interest of the Office, the OHE Director may request e><emption from this requirement from the Commissioner of Minnesota Management & Budget not to e>teeed one hundred twenty percent ( 120%) of the of the OHE Director's salat)' or the employee's sal at)' range maxim1:1m, whichever is less.

Consistent with existing statutes and Section F-2 of this P lan, unc lassified positions within the office will be assigned to the following range structure:

.IV. • 'liH'l ,1 'lll1~ ~.I , D , (li' ""'

'7 / 1/'lll11 1 / 1 / 'lll1 ~-A·~~"& A-"·~ - ~A-"&&~-~~~~"&&&& ~· ~ .. e-~ - ~·-~A4 4 ! 4 !

OFFICIAL BARCS

J().B -FbSA OWNING l:JSE.I) -+1-l+l-l -+1-l+l-l (;()Mp

(;(}00 C-hASS

S~A~l:JS -BA-RG A+ GRID

MINIHR MAXJH R (;(}00 D

+l+hE GHE

GHBb I eJ<en~ 13 t $35.86/ $50.03/ ~ ;Q.Q ;Q.Q HBP-B {}-1B

B*ee~:~ti¥e B1<ee +est $+4,8+6 $104,463 GHE

B*em13t $32.23/ $45.00/ 00&4M Manager ;Q.Q ;Q.Q HEP-B %B

e><ee +est $6+,296 $93,960 eJ<ec Eb 1~

GHE B*em13t $28.59/ $39.51/ 008£-1- Manager l Atifn.ffi ;Q.Q ;Q.Q HEP-B %B

$59,696 $82,49+ ~ +est GHE

e><em13t $24.+61 $34.26/ ~ Manager 2 ;Q.Q ;Q.Q HEP-B MB e1<ee +est $51,699 $+ 1,535

~ GHB

e><em13t $21 .25/ $29.05/ OO&-£J Professional 2-l-9 2-l-9 HBPA @B

Pref+est $44,3+0 $60,656 -t--fb--41

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OFFICIAL BARCS

JO.B -FLSA- OWNING l:J.S.ED -l+UlJ -l+UlJ CQDE

(;LA.S8 STATUS -BARG A+ GRID MIN/HR MAX/HR

CQM.I! ()liE

-TJT.L.E CQDE R,<~-,NCE ()liE

GHBb I el<eHlf3t $36.58/ $5 1.03/ ~ ~ HeP-B Q.1B Gf

oo8n5 el<eeHliYe e*ee +est $+6,3+9 $ 106,55 1 GHe

e>temf3t $32 .8+1 $45.90/ 008454 Manager ~ ~ HEP-B (}@ {16

el<ee +est $68,633 $95,839 e*ee Eb 11 GHe e1cem13t $29.16/ $4 0.3 0/

00853 1 Manager I Adm+R ~ ~ HeP-B {fiD ~ $60,886 $84,!46 fl:rl1 +est

GHe elC6ffif3t $25.26/ $34.95/

008532 Manager 2 ~ ~ HeP-B G4B 04 e*ee +est $52,+43 $n,9+6 EW1 GHe

E*em13t $2 L68/ $29.63/ 008533 Profess iona l 2+9 2+9 HHlA Gm @

Prof+est $45,268 $6 1,86+ -l----fh-4j GHe e1cem13t $ 1+.84 / $24 .1 +/

008534 Professional Prof+est 2+9 2+9 HEM 02B 00. $3+,250 $50,46+

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Fiscal Year 201 4 Salarv Ranqes {Effective 7/1/2013 - 6/30/201 4)

JOB OFFICIAL

FLSA OWNING BARGS

7/1/13 7/1/13 CLASS USED COMP OHE CODE STATUS BARG GRID MIN/HR MAX/HR TITLE ATOHE CODE RANGE

OHE L-1 Exempt 220 220 HEP8

$37.68 $52.56 078 07 008725 Executive Exec Test $78,676 ~109 , 745

OHE Exempt $33.86 $47.28

008454 Manager 220 220 HEP8 068 06 Exec (L-1) Exec Test $70,700 $98,721

OHE Exempt $30.03 $41 .51

008531 Manager 1 Admin 220 220 HEP8 058 05 LL-21 Test

$62,703 $86,673

OHE Exempt $26.02 $36.00 008532 Manager 2 220 220 HEP8 048 04

[L-:U Exec Test $54,330 $75,168

OHE Exempt $22.33 $30.52

008533 Professional 1 219 219 HEPA 038 03 LL-41

Prof Test $46,625 $63,726

OHE Exempt $18.38 $24.90

008534 Professional 2 219 219 HEPA 028 02 [L-5j

Prof Test $38,377 $51 ,991

Fiscal Year 201 5 Salary Ranges (Effective 7/1/2014 - 6/30/201 5)

JOB OFFICIAL FLSA OWNING

BARGS 7/1/14 7/1/14 CLASS USED COMP OHE CODE STATUS BARG GRID MIN/HR MAX/HR

TITLE ATOHE CODE RANGE OHE L-1 Exempt

220 220 HEP8 $38.81 $54.14

078 07 008725 Executive Exec Test $81,035 ~ 113,044 008454 OHE Exempt 220 220 HEP8 $34.88 .$_48.70 068 06

OHE Unclassified Plan 20 1}±-1~:~

Manager Exec Test $72,829 ~ 101 ,686 Exec (L-1) OHE Exempt $30.93 $42.76

008531 Manager 1 Admin 220 220 HEP8 058 LL-2J Test

$64,582 $89,283

OHE

008532 Manager 2 Exempt

220 220 HEP8 $26.80 $37.08

048 (L-3) Exec Test $55,958 $77,423

OHE Exempt $23.00 $31.44

008533 Professional 1 219 219 HEPA 038 LL-41

Prof Test $48,024 $65,647

OHE Exempt $18.93 $25.65

008534 Professional 2 219 219 HEPA 028 LL-Q.l

Prof Test $39,526 $53,557

2. Assignment of pos itions to these salary ranges sha ll be based upon the fo llowing class if ication system for unc lass if ied employees of the office:

L-1 Exec. B road executive manageria l responsibility including planning, directing, coordinating, and deve lopmenta l respons ibility for agency administration and operat ions, long- range programs, strategic planning, resea rch proj ects, organizational planning activities and administration of personne l organized as a separate division or major area of responsibility.

L- l B road executive manageria l responsibility including planning, directing, coordinating, and developmenta l respons ibility for long-range programs or research proj ects .

L-2 Direct managerial, administrative, coordinative, planning, and/or developmenta l respons ibility for a specif ic program(s); analytical , planning, or research projects; and supervis ion or personnel for an office or section of the agency.

L-3 D irect administrative or mid-manageri a l responsibili ty for progra m(s) advanced statistical research and/or programmatic respons ibility, and supervision of personnel w ithin a div is ion as ass igned by an L- 1 Executive or top leve l management.

L-4 Specia lized research, planning, and/or programmatic ad mi nistrative respons ibilities w ithin a divis ion tha t are assigned by a L- l Execut ive, top leve l management or supervisor who reports to a L-l Execut ive.

L-5 Profess ional positions with responsibility for program eva luat ions, planning, program administration , or research analyses and stud ies that are ass igned by a supervisor in the div is ion or L- l Executive.

3 . The sa lary ranges set forth above w ill be rev iewed continuously (at least biennially) to ensure adequacy of sa laries pa id and f lex ibili ty in established compensation practices . Changes in salary ranges mu st be approved by the Appo inting A uthority and fo rwarded for rev iew and approva l to the Commiss ioner of M innesota Ma nagement & B udget and the Joi nt

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Subcomm ittee on Employee Relations ofthe Legislative Coord inati ng Comm iss ion prior to implementation.

G. Advancement Tht·ough the Salat·y Range

Employees covered by this Plan shall receive a sa lary increase of three twe percent Q.~%), rounded to the nearest cent per hour effective l.!!ly_l,January 2, 20 13,_-if the Appointing Authority certifies that the employee has achieved performance standards or objectives. This sa laty increase shall not resu lt in a sa lary above the new max imum of the salaty range for the classification. Effective July I, 20 14, employees covered by this Plan may receive a salaty increase of three percent (3%) rounded to the nearest cent per hour, if the Appo inti ng Authority certifies that the employee has achieved performance standards or ob jectives. This sa lary increase also applies to employees whose rates of pay exceed the new maximum of their sa lary range~ with the e>tception of the following employees: Employees whose sa laries are specified in statute Employees whose rates of pay exceed the salary of their agency head, applicable to agencies listed in M.S. 15A.08 15, unless e>,empted under the exceptions to the agency head salary limit listed in M.S. 43A.I7, subdiv ision 3.

The salary ranges for classes covered by this Plan effective Ju ly I, 20 II through June 30, 2013 are contained in Section F of this Plan.

1. Performance-Based Salary Increases.

Effective January 14, 201~ and December 3 1, 201 4, and at the beginning ofthe first fu ll pay period in each January thereafter, an employee who is 'Nho is covered by this Plan on the prev ious day and whose current rate of pay does not equal or exceed the maximum of the salaty range -is eligible for onea performance-based salary increase of up to three and one­half percent (3.5%) rounded to the nearest cent per hour. ifthe emp loyee's current rate of pay does not equa l or exceed the ma>timum rate of a pay of the app licable sa laty range or does not equal or exceed the app licab le sa lary li mit provided in M.S. 43A.17 subdivision 1 or 3. Such increase sha ll be in the form of an adjustment to the employee's base salary rate and shall, not te-exceed the sa lary range maximum. The salary increase shall be tied to the employee's performance as measured against previously established standards and objectives.

Effective January 4, 2012, an employee may receive a performance based salary increase up to three and one half percent (3 .5%) if: • the employee has been continuous ly employed in a position covered by this Plan through

the effective date of this Plan, and • the employee's base sa lary rate does not equal or e>tceed the maKimum of the salary

range or the app licab le salary li mit provided in M.S. 43/\ . 17, subdiv ision I or 3.

Effective January 2, 20 13, an employee may receive a performance based salary increase up to three and one ha lf percent (3 .5%) if: • the employee has been continuous ly employed in a position covered by this Plan through

the effective date of th is Plan, and • the employee's base sa lary rate does not equa l or e>tceed the ma>dmum of the salary

range or the app licable sa lary limit provided in M.S. 43A.l7, subdivision l or 3.

OHE Unclass if ied Plan 201J±-1~~ 6

An unc lass ified emp loyee may be granted only one performance based increase in each fiscal year.

Effective January l , 201§.4, the-the aggregate sa lary increases granted to employees in an agency sha ll not exceed tlu-ee and one-half percent (3 .5%) of the aggregate sa laries of e lig ible employees in the agency.

The A ppointing Authority has the discretion to award or-may- withhold the amount to be awarded~ based on performance, budget constrai nts, or to rea lign inte rnal sa lary relationships. At the discretion of the Appointing Authori ty, salary increases may be delayed and if granted, shall be effect ive no later than the beginning of the first full pay period in the following June. An unclass ified employee may be granted only one performance based increase in each fi sca l year.

2. Hiring Incentive.

At the written request of the Appointing A uthori ty and with the approval of the Commissioner of Minnesota Management & Budget, the OHE may offer a hiring incentive of up to five thousand dollars ($5,000) to a candidate accepting appointment in a difficult to fill position where an incentive is necessary to attract a qualified individual. The Appointing Authority shall determine the amount of the incentive, not to exceed five thousand dollars ($5 ,000), and the timing of incentive payments and communicate them to the candidate in writing prior to the appointment. However, no incentive payment may be granted before six (6) months or later than twenty-four (24) months of continuous sati sfactory employment at the OHE.

H. Health/Dental Premium Account

The Employer provides insurance e ligib le unc lassified employees with the option to pay for the unclassified employee's portion of the health and dental premiums on pre-tax basis as permitted by law or regulation.

I. Medicalillental Expense Account

The Employer agrees to a llow insurance e lig ible unclassified employees to participate in a medical and dental expense reimbursement program to cover co-payments, deductibles, and other medical and dental expenses or expenses for services not covered by health or dental insurance on a pre-tax basis as permitted by law or regulation, up to a maximum expenditure of sa laty reduction contributions allowed per calendar year under Section 125 of the Internal Revenue Code or other app licable federal law. five thousand dollars ($5,000) in calendar year 201 2. Effective January 1, 20 13 thereafter, two thousand fi ve hundred dollars ($2,500) shall be the maximum expenditure in each cal endar year.

J. Dependent Care Expense Account

The Employer provides insurance elig ible unclassified employees with the option to participate in a dependent care reimbursement program for work-re lated dependent care expenses on a pre-tax basis as permitted by law or regulation.

OHE Unclassified Plan 201i ±-12J 7

K. Transit Expense Account

The Employer provides insurance eligible unclassified employees with the option to participate in a program to pay work-related parking and transit expenses on a pre-tax basis.

L. Health Care Savings Plan

All employees shall contribute one percent (1%) of their gross earnings subject to retirement into an individual Health Care Savings Plan account with the Minnesota State Retirement System each pay period. The contribution shall occur regardless of whether or not their position is retirement eligible.

M. Granting of Achievement Awards

An unclassified employee who has demonstrated outstanding performance may receive achievement awards in the amount of a lump sum payment not to exceed two thousand dollars ($2,000) per fiscal year. In no instance during a fiscal year shall achievement awards be granted to more than twenty percent (20%) of the number of unclassified positions authorized at the beginning of the fiscal year.

N. Salary Administration Procedures

1. Position Descriptions.

A new or promoted unclassified employee shall receive a current position description on or before the effective date of employment. Therefore, such position descriptions should be reviewed by the employee and supervisor on a regular basis (at least annually) to determine if changes have occurred which should be incorporated into the position description.

2. Promotion.

Upon promotion unclassified employees receive an immediate salary increase to a higher salary range. The Appointing Authority may grant an immediate salary increase of up to twelve percent (12%) or the midpoint of the new salary range, whichever is greater. The Appointing Authority may grant a larger increase with advance approval from the Commissioner of Minnesota Management & Budget based on specific written findings supporting a higher salary. No promotional increase shall be granted which would place an unclassified employee's rate of pay above the salary range maximum.

3. Salary on Demotion for Other Than Cause.

Upon demotion, an employee's current rate of pay shall remain the same ifthe rate falls within the new salary range unless the employee voluntarily chooses to accept a lower rate of pay. If the current rate of pay exceeds the maximum of the new range, it shall be reduced to the maximum of the new range unless a) the employee agrees to accept a lower salary rate or b) the demotion is the result of a reallocation to a lower classification or c) the demotion is a result of a gradual change in assigned duties, or d) the Commissioner of Minnesota Management & Budget approves a request from the Appointing Authority to pay a rate which exceeds the maximum under the provisions of Minnesota Statutes 43A.l7, subdivision 5.

OHE Unclassified Plan 201~-±-l~-6 8

4. Sa lary on Demotion for Cause.

Upon demotion, an employee shall receive a sa lary rate within the range for the c lass ification to which the employee is demoted.

5. Request for Review.

A request for position re-eva luation, performance rev iew, or sa lary range ass ignment review may be initiated at any time by an employee or supervisor. The proced ure for handling such requests shall be established by the agency personnel officer or OHE DirectorCommissioner.

0. Vacation Leave

1. Vacation Leave Accrual and Usage .

Upon entry to State serv ice in a full-time, unlimited, unclass ified position, an eligible unclassified employee shall be credited with e ighty (80) hours (ten (10) days) of vacation leave. Part-time unclass ified employees (excluding temporary unclass ified employees and employees who transfer from any other posit ion in state government) shall be credited w ith a pro rata vacation leave hours based on the accruals as stated in Appendix A. The credited hours sha ll be reduced prop01tionately as vacation leave is accumulated. Vacation hours credited upon entry to State service and is but-not offset by accumulated vacation prior to separation from State service shall not be e ligible for liquidation.

If a current employee in State service is appointed to a full-time, unlimited, unclass ified position and that employee has his/her accumulated vacation leave hours transferred, the employee shall not be credited additional vacation leave hours.

In addition, the OHE DirectorCommissioner may at his/her discretion, adjust the Length of Service of such employees to refl ect credit for all, none or a portion of any prior private or public sector experience directly re lated to the position to which the employee is being appointed.

Current employees sha ll have one hundred twenty (120) calendar days from the effective date of this Plan to req uest credit for prior relevant private or public sector experience. Such employee must submit documentation of the qua li fY ing experience to the Appointing Authority for approval. At his/her discretion, the Appointing Authority may adjust Length of Serv ice to reflect cred it for a ll , none, or a portion of the related private or public sector experience. Any change in Length of Service shall be effect ive the pay period in which the Appointing Authority approves the request and shall only affect future leave accrual.

All unclassified emp loyees (excluding temporary unclassified employees) shall earn vacation leave with pay in accordance with Appendix A. Vacation leave may be accumulated to any amount provided that once during each fiscal year, the unclassified employee's balance must be reduced to thirty-five (35) days (280 hours) or less. If this is not accomplished by the last day of the fisca l year, the unclassified employee's accumulation sha ll automat ically be reduced to thirty-five (35) days (280 hours). In einergency s ituations, the Appo inting Authority, with approva l of the Commiss ioner of Minnesota Management & Budget, may temporarily suspend the max imum number of hours which may be accumulated. An unclassified employee is eligible to utilize thi s sect ion when newly appointed or when changed from a class ified appointment. An employee who transfers to a position covered

OHE Unclassified Plan 201~±-1.2,~ 9

under the provis ions of this Plan from any other position in state government may transfer his/her accumulated vacat ion leave balance (not to exceed two huAdred eighty (280j hours) and length of serv ice credit for purposes of vacation accrual.

T he taking of vacation leave shall require prior approval ofthe employee's supervi sor who shall take into account demands of the workload as well as the interests of the unclassified employee in approving or disapproving time for vacation leave with pay.

Vacation leave hours shall not be used during the payroll period in which the hours are accrued.

2 . Vacation Leave Liquidation.

An unclassified employee separated from State service shall be compensated at the employee's current rate of pay, for all accumulated and unused vacation leave cred ited at the time of separation to a maximum of thirty-five (35) days (280 hours). The max imum cap shall not apply in situations where the payout is due to the employee's death . Vacation leave may not be used in combination with unpaid leave on separation from state service to extend insurance coverage.

An unclassified employee, in this Plan, who is placed on emergency layoff, shall not have his/her accumulated vacation liquidated.

For budget reasons, an Appointing Authority may e lect to distribute the vacation and severance payment, whether paid to the employee or to an individual Minnesota State Retirement System Health Care Savings Plan account, over a period of up to two (2) years from the elate of separation. Ifthe employee dies before all ofthe vacation and severance pay has been disbursed, the balance due shall be paid to a named beneficiary, if any, or to the employee's estate .

3. Conversion of Accumulated Vacation to Deferred Compensation.

Once each fiscal year, an unclass ified employee may elect to convert a portion of his/her accumulated vacation to a contribution to a deferred compensation plan fo r which the state provides payroll deduction ; or to receive a State-paid contribution to the State deferred compensation program. Employees must complete the vacation conversion process by June 51

" of each fiscal year. The Appointing Authori ty may deny requests or limi t the amount of vacation hours converted on an agency-wide basis for the State pa id contribution or the vacation convers ion provided in this section due to budget restrict ions.

a. State Paid Contribution The State paid contribution shall be in an amount matching the unclass ified employee's contributions on a dollar for dollar basis, not to exceed three hundred dollars ($3 00) per unclass ified employee.

b. Convers ion of Accumulated Vacation to Deferred Compensation Unclassified employees at the L-4 through L-5 classification levels may convert up to forty ( 40) hours of accumulated vacation per fiscal year. Unclassified emp loyees at the L- 1 Executive through the L-3 c lassification levels may convert up to fifty (50) hours per fisca l year. Contributions to deferred compensation plans made through the convers ion of vacation hours are subj ect to a ll of the rules and regulations of the respective plans.

OHE Unclass ified Plan 201~±-1_23 10

P. Sicl{ Leave

Temporary unclass ified employees are not e lig ible to accrue sick leave. Upon entry to State service, an elig ible full-time employee sha ll be cred ited with one hundred and four (1 04) hours of s ick leave. Part-time employees sha ll be credited with s ick leave hours based on the accruals as stated in Appendix B times twenty-six (26) pay periods. The credited hours sha ll be reduced proportionate ly as s ick leave is accumulated. Thereafter, a full-time unclass ified employee will earn four ( 4) hours of sick leave for each succeeding payroll period of continuous employment. Part-time unc lass ified employees w ill earn s ick leave in accordance with the sched ule set forth in Appendix B.

If an emp loyee returns to State service and has sick leave hours restored, he/she shall not be credited with sick leave hours upon re-ent ry to State service. If a current State employee has his/her accrued sick leave hours transferred, he/she shall not be credited with any additional s ick leave hours.

Usage.

Sick lea·t'e hours shall not be used during the payroll period in which hours are accrued .

Whenever practicable, an unc lass ified employee shall su bmit a written request for s ick leave in advance of the period of absence. When advance notice is not possible, the unclass ified employee shall not ify hi s/her su pervisor at the earliest opportuni ty. An unc lassified employee using s ick leave may be required to furnish a statement from his/her med ical practitioner or a medical practitioner, des ignated by the Appointing A uthority, indicating the nature and expected duration of the illness or disability. The Appointing Authority may also require a similar statement from a med ical pract itioner if the A ppointing Authority has reason to believe the employee is not able to work or has been exposed to a contagious disease w hich endangers the hea lth of other persons.

Sick leave hours shal l not be used during the payroll period in which hours are accrued .

An unc lass ified employee shall be granted paid s ick leave to the extent of his/her accumulated hours for the following:

o illness or disability; o medical, chiropractic or dental care for the employee's spouse or dependent child liv ing

in the household or minor child whether or not the child lives in the same hou sehold as the unclassified employee;

o exposure to contagious disease which endangers the health of other persons; o inab ility to work because of the employee's pregnancy or child birth; o birth or adoption of the employee's child , not to exceed five (5) days; o to arrange for necessary nurs ing care for members of the fami ly not to exceed five (5)

days; o to attend the funera l of a spouse, parent, grandparent, step-grandparent, guardian,

children, grandchildren, s ibling, or other c lose re lative, stepch ild, ward or parent of grandparent of the spouse for a reasonable period of time, including necessary trave l time, but not or absences to aid bereaved re latives or to attend to the estate of the deceased;

o the illness or disability of family members of the same household or other dependents for such reasonable periods as the employee's attendance may be necessary; or

OHE Unclassified Plan 201~±-1~~ 11

_•_with advance notice, the time necessary (including reasonable travel to and from the work s ite to accompany employee ' s parent (s) to med ica l chiropract ic appointments.

See also Appendix D, Letter of July 2, 201 3, regard in g employee use of accrued sick leave of the illness and injllly of cettain family members.

An e lig ible employee who moves without a break in service to a position under this Plan from any other position in Minnesota State Government, shall have his/her leave accumulated sick leave balance transferred. If the previous accrual rate and maximum accumulation were greater than those provided in this Plan, the leave balance shall be transferred in an amount equal to what the employee would have accumulated under this Plan.

An unclassified employee who is reappointed to State service within four (4) years from the date of separation in good standing shall have his/her unpa id sick leave balance and bank, if any, restored provided that any unclass ified employee being reappointed after receiving severance pay shall have his/her leave restored proportionate ly by deducting the hours which were paid as severance.

An employee may use the restored sick leave immediately upon return to State service.

Q. Holidays

1. Observed Holidays.

All unclass ified employees covered by this Plan shall be e ligible for paid holidays. The followin g days shall be observed as paid holidays:

New Year's Martin Luther King Day Presidents Day Memorial Day Independence Day Labor Day Veterans Day Thanksgiving Day Day after Thanksgiving Christmas

When any of the above holidays fall on Saturday, the preced ing Friday shall be observed as the holiday, and when any of the above holidays fall on a Sunday, the following Monday shall be observed as the holiday. A ll unclass ified staff covered under this P lan who is in payroll status is eligible for paid holidays . However, unclass ified staff on temporary appointments of six months or less shall not be e ligible for the f loating holiday.

2. Floating Holidays.

Unclassified employees shall rece ive one (1) floating holiday each fisca l year of this Plan, except a temporary unclassified emp loyee shall not be e lig ible for a floating holiday. The employee must request a floating holiday in adva nce. The scheduling of such a day shall be

OHE Unclassified Plan 201~-1- 1~~ 12

by mutual agreement between the supervisor and employee. The floating holiday shall be taken in the fiscal year in which it is earned or it is lost. No cash payment shall be made for a floating holiday.

3. Holiday Pay Entitlement.

In order to receive a paid holiday, an eligible employee shall be payroll status on the normal work day immediately preceding and the normal work day immediately following the holiday(s).

An eligible person mandatorily retired on a holiday or holiday weekend shall be entitled to be paid for the holiday(s).

Eligible persons who normally work less than full-time shall have their holiday pay prorated according to Appendix C.

4. Religious Holidays.

When a religious holiday not observed as a holiday as provided in Section Q-1, falls on an unclassified employee's regularly scheduled work day, the unclassified employee shall be entitled to that day off to observe the religious holiday(s).

Time to observe religious holidays shall be taken without pay except where the unclassified employee has sufficient accumulated vacation leave, or by mutual consent with the Appointing Authority, is able to make the time up within the same payroll period. Unclassified employees shall notify their supervisor of their intention to observe the religious holiday in advance of the holiday.

R. Severance Pay

An unclassified employee shall be entitled to severance pay immediately following separation from the State by reason of: ill death; o retirement after ten ( 1 0) years of continuous state service with immediate entitlement at the

time of retirement to a retirement benefit under the State retirement program; ill separation after twenty (20) years of continuous state service; co termination resulting from abolition of unlimited unclassified position due to mandated

reduction or fiscal constraints; or ill separation after five (5) years of continuous State employment as an employee in the

unclassified service.

Employees are not eligible to receive severance pay upon emergency layoff.

Employees separating from the State for at least one of the reasons listed above shall be entitled to thirty-five percent (35%) of the employee's accumulated but unused sick leave balance at the time of separation.

Severance payments received on or after the implementation of this Plan shall be paid in cash if the severance payment is being made because of the death ofthe employee, or ifthe gross amount of severance payment to be paid under this section is less than five thousand dollars ($5,000). If

OHE Unclassified Plan 201~-1-1~~ 13

the gross severance payment is equal to or greater than five thousand dollars ($5,000), the severance pay shall be transferred to an individua l Minnesota State Retirement System Hea lth Care Savings Account established under Minnesota Statutes 352.98.

Employees who have received severance pay and are subsequently reappointed to State service are eligible for future severance pay based on only the hours accrued s ince reappointment.

For budget reasons, an Appointing Authority may e lect to di stribute the vacat ion and severance payment, whether paid to the manager or to an individual Minnesota State Retirement System Health Care Sav ings Plan account, over a period of up to two (2) yea rs from the date of separation. If the employee dies before a ll of the vacation and severance pay has been disbursed, the balance due sha ll be paid to a named beneficiary, if any, or to the employee's estate.

S. · Other Leaves of Absence

Application foa· Leave. As far as practicab le, a ll requests for leave of absence shall be submitted in writing by the unclass ified employee to the immediate supervisor and approved by the OHE DirectorComm issioner prior to the begi nning of the period of absence. The request shall state the reason for, and the anticipated duration of, the leave of absence.

1. Leaves of Absence - Paid

Military, jury duty, court appearance, e lect ion judge, emergency, athletic, blood donation, administrative, investigatmy, and voting time leaves will be in accordance with the State Managerial Plan.

2. Leaves of Absence- Unpaid

Medical , natura l or adoptive parent, military, voluntary service, public office, e lder care, persona l, salary savings and political process leaves will be in accordance with the State Managerial Plan.

Emergency Layoff. Employees may be placed on emergency layoff if it is deemed necessary by the Commissioner of M innesota Management & Budget. Emergency layoff may be dec lared for events that include but are not limited to: a natural disaster, epidemic, national security emergency, nuclear emergency or fi sca l exigency. During periods of emergency layoff the Appointing Authority may continue to provide the Employer' s portion of insurance premiums.

3. DeveloRmental Leave

An unclass ified employee, who is at a L-3 level or above, is e ligible for a developmental leave to secure additional education, training, or experience which will better prepare him/her to carry out his/her management responsibi li ties. A developmental leave may be granted for any period up to two (2) years at no pay, partial pay, or full pay. Granting of a deve lopmental leave is at the discretion of the OI-IE DirectorCommissioner. The employee shall be eligi ble to retain State-pa id insurance benefits for which she/he is otherwise eligible while on developmental leave.

A developmental leave may be granted if the following cr iteria are met: o T he employee has at least three (3) years State service;

OHE Unclassified Plan 201}1-12_~ 14

o The employee is a full-time employee at the time in which the developmental leave is granted;

o The emp loyee has submitted to the OH E DirectorCommissioner a written plan for the developmental leave showing how it will serve the purpose described above;

g The organizational function and goa ls can be carried out during the employee 's absence; o Funds are avai lable for this purpose; and e The em ployee agrees to return to State employment followin g the completion of a paid

developmental leave for the amount of time specified by the OHE DirectorCommissioner at the time the leave was approved.

Reinstatement After Leave. An unclassified employee returning from an approved leave of absence shall be entit led to return to employment in his/her position, or another position in the employee 's c lass ification, or a position or comparab le duties and pay for wh ich he/she is qualified. An employee returning from an extended leave of absence oftwo (2) months or more shall notify the OHE DirectorCommiss ioner or designee in writing at least two weeks prior to the intended date of return from leave. The employee returning from a leave of absence sha ll return at least at the sa me rate of pay he/she had been receiving at the t ime the leave of absence commenced.

Cancellation of Leaves. Leaves of absence or extensions of leaves which are subject to the discretionary authority of the OHE DirectorCommissioner or des ignee may be canceled by the OHE DirectorCommissioner or designee upon reasonable notice to the employee. Such notice sha ll ordinarily be in writing except in case of emergency. At the discretion of the OHE DirectorCommiss ioner or designee, the emp loyee may terminate hi s/her leave of absence prior to the previously agreed upon date of expiration of the leave.

T. Othe1· Benefits

Other Benefits listed below and covered by this Plan shall apply to all unclassified employees, except temporary unclassified employees not e ligible for group insurance. These benefits will be according to the provi sions stated in the State Manageria l Plan:

U. Effective Date

Group Lnsurance Expense Reimbursement Mobile Dev ice Allowance Relocation Expenses Worker's Compensation Injured on Duty Pay Ea rly Retirement Incentive

This Plan shall become effective July 1, 20 lJ+ except those items included in Section T, Other Benefits, which sha ll be effective on the dates as shown in that plan and continue in force unt il a revised plan and/or amendments are approved by the Commissioner of Minnesota Management & Budget and the Joint Subcommittee on Employee Re lations of the Legis lative Coordinating Commiss ion.

OHE Unclassified Plan 2011±-1~~ 15

APPENDIX A

H ours of Vacation Accrued During Each Payt·oll Period of Continuous Service

Length of Set-vice Requirement

Othet· Unclassified Numbet· ofHom·s L-4 through L-5 Employees 0 through 20

Wol"l<ed During Pay 0-5 Years years and L-4 through L-5 Over 20 Y eus Per iod 6 through 20

Less than 9.5 0 0 0

At least 9 .5, but less l.25 1.5 1.75

than 19.5 At least 19 .5 but less

1.50 2 2 .25 than 29.5 At least 29.5 but less

2.25 3 3.5 0 than 39.5 At least 39.5 but less

3 4 4.5 0 than 49.5 At least 49. 5 but less

3.75 5 5.75 than 59.5 At least 59.5 but less

4.50 6 6.75 than 69 .5 At least 69.5 but less

5.25 7 8 than 79. 5 At least 79 .5

6 8 9

.,.-

Upon init ia l entry to the State service in a full -t ime, unlimited, unclassified position, an eligible

I unclass ified employee sha ll be credited with e ighty (80) hours (ten (I 0) days) of vacation leave. Such

cred it shall be red uced proportioi1ate ly as vacation leave is accumulated.

OH E Unclassified Plan 20 1~±-1~:~ 16

APPENDIX B

Hours of Sick Leave Accrued During Each Payroll Period of Continuous Service

Numbet· of Hours Worked/Paid Number of Hours Accrued

Less than 9.5 0

At least 9.5 but less than 19.5 .75

At least 19.5 but less than 29.5 1.0

At least 29.5 but less than 39.5 1.50

At least 39.5 but less than 49.5 2.0

At least 49.5 but less than 59.5 2.50

At least 59.5 but less than 69.5 3.0

At least 69.5 but less than 79.5 3.50

At least 79.5 4.0

**For purposes of this Appendix, "hours worked/paid" means all hours worked, and all paid

leaves of absence, paid vacation and sick leave, and paid holidays.

OHE Unclassified Plan 201~±-1.2,J. 17

APPENDIX C

Pro Rata Schedule for Holiday Pay

Hours that would have been worl{ed during the pay pel'iod had there been no holiday

Less than 9.5 At least 9. 5 but less than 19.5 At least 19.5 but less than 29.5 At least 29 .5 but less than 39.5 At least 39.5 but less than 49.5 At least 49 .5 but less than 59.5 At least 59.5 but less than 69 .5 At least 69.5 but less than 79.5 At least 79.5

~Aai-IJeFSiGA 02 271J/VS 2

2013-2015 OHE Plan Rev: 12-1--1008-13

OH E Unclassif ied Plan 201}±-12~ 18

Holiday hours earned for each holiday in the pay period

0 1 2 3 4 5 6 7 8

APPENDIX D

.J:1 MINNESOTA l..!t"Ma~agemen~ .......... &Budget

DATE: July 2, 2013

TO: State Supervisors

FROM:

RE:

Human Resource Directors/Designees . Labor Relations Directors/Designees

Carolyn J. Travis Acting Assistant Commissioner/State Negotiator

Expansion of Sick Leave Benefits

The Minnesota legislature recently passed a law which expands employees' entitlement to use accrued sick leave benefits. Effective August 1, 2013, state employees may use paid sick leave for reasonable periods of tlme as the employee's attendance may be necessary due to the illness or injury of the following family members:

• Adult children • Spouse • Brother or Sister • Parent • Stepparent • Grandparent

The new law expands prior law that allowed for the use of sick leave for the illness or injury of an employee's "child" (including stepchild and biological, adopted and foster child). Along with the expansion to include additional family members, this law does not require that these persons live in the employee's household. ,

An employer may limit the use of personal sick leave for the illness or injury of the employee's: adult child; spouse not living in household; brother or sister; parent or stepparent not living in household; or gra_ndparent to a cap of 160 hours in any 12-month period.

The new law is an expansion of what is currently found in the sick leave article of the labor contracts and Plans. You are to apply the expanded provisions of the law, as well as the sick leave provisions of the applicable contracUPlan.

If you have any questions, please contact your Labor Relations representative.

400 Centennial Building • 658 Cedar Street • St. Paul, Minnesota 55155 Voice: (651) 201-8000 • Fax: (651) 296-8685 • TTY: MN Relay 711

An Equal Opportunity Employer

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