Section 1, Section 63A-17-102 is amended to read: 63A-17-102. Definitions. As used in this chapter: (1)"Agency" means any department or unit of Utah state government with authority to employ personnel. (2)"Career service" means positions under schedule B as defined in Section 63A-17-301. (3)"Career service employee" means an employee who has successfully completed a probationary period of service in a position covered by the career service. (4)"Career service status" means status granted to employees who successfully complete probationary periods for competitive career service positions. (5)"Classified service" means those positions subject to the classification and compensation provisions of Section 63A-17-307. (6)"Controlled substance" means controlled substance as defined in Section 58-37-2. (7) (a)"Demotion" means a disciplinary action resulting in a reduction of an employee's current actual wage. (b)"Demotion" does not mean: (i)a nondisciplinary movement of an employee to another position without a reduction in the current actual wage; or (ii)a reclassification of an employee's position under the provisions of Subsection 63A-17-307 (3) and rules made by the department. (8)"Director" means the director of the division. (9)"Disability" means a physical or mental disability as defined and protected under the Americans with Disabilities Act, 42 U.S.C. Section 12101 et seq. (10)"Division" means the Division of Human Resource Management, created in Section 63A-17-105 . (11)"Employee" means any individual in a paid status covered by the career service or classified service provisions of this chapter. (12)"Examining instruments" means written or other types of proficiency tests. (13)"Human resource function" means those duties and responsibilities specified: (a)under Section 63A-17-106; (b)under rules of the division; and (c)under other state or federal statute. (14)"Market comparability adjustment" means a salary range adjustment determined necessary through a market survey of salary data and other relevant information. (15)"Probationary employee" means an employee serving a probationary period in a career service position but who does not have career service status. (16)"Probationary period" means that period of time determined by the division that an employee serves in a career service position as part of the hiring process before career service status is granted to the employee. (17)"Probationary status" means the status of an employee between the employee's hiring and the granting of career service status. (18)"Structure adjustment" means a division modification of salary ranges. (19)"Temporary employee" means a career service exempt employees employee described in Subsection 63A-17-301(1)(r). (20)"Total compensation" means salaries and wages, bonuses, paid leave, group insurance plans, retirement, and all other benefits offered to state employees as inducements to work for the state.

Section 2, Section 63A-17-105 is amended to read: 63A-17-105. Division of Human Resource Management created -- Director -- Chief Human Resources Officer -- Staff. (1)There is created within the department, the Division of Human Resource Management. (2) (a) The division shall be administered by a director appointed by the executive director, with the approval of the governor. (b) (3) The director shall : (a) be a person with experience in human resource management and shall be ; (b) be accountable to the executive director for the director's performance in office . ; (c) serve as the chief human resource officer for the state executive branch; and (3) (d) The director shall advise the governor on human resource matters and policies.

Section 3, Section 63A-17-106 is amended to read: 63A-17-106. Responsibilities of the director. (1)As used in this section, "miscarriage" means the spontaneous or accidental loss of a fetus, regardless of gestational age or the duration of the pregnancy. (2)The director shall have full responsibility and accountability for the administration of the statewide human resource management system. (3)Except as provided in Section 63A-17-201, an agency may not perform human resource functions without the consent of the director. (4)Statewide human resource management rules made by the division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, shall take precedence if there is a conflict with agency rules, policies, or practices. (5)The division may operate as an internal service fund agency in accordance with Section 63J-1-410 for the human resource functions the division provides. (6)The director shall: (a)develop, implement, and administer a statewide program of human resource management that will: (i)aid in the efficient execution of public policy; (ii)foster careers in public service for qualified employees; and (iii)render assistance to state agencies in performing their missions; (b)design and administer the state pay plan; (c)design and administer the state classification system and procedures for determining schedule assignments; (d)design and administer the state recruitment and selection system; (e)administer agency human resource practices and ensure compliance with federal law, state law, and state human resource rules, including equal employment opportunity; (f)consult with agencies on decisions concerning employee corrective action and discipline; (g)maintain central personnel records; (h)perform those functions necessary to implement this chapter unless otherwise assigned or prohibited; (i)perform duties assigned by the governor, executive director, or statute; (j)make rules for human resource management, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act; (k)establish and maintain a management information system that will furnish the governor, the Legislature, and agencies with current information on authorized positions, payroll, and related matters concerning state human resources; (l)conduct research and planning activities to: (i)determine and prepare for future state human resource needs; (ii)develop methods for improving public human resource management; and (iii)propose needed policy changes to the governor; (m)study the character, causes, and extent of discrimination in state employment and develop plans for its elimination through programs consistent with federal and state laws governing equal employment opportunity in employment; (n) when requested by charter schools or counties, municipalities, and other political subdivisions of the state, provide technical service, training recommendations, or advice on human resource management at a charge determined by the director; (o) (n) establish compensation policies and procedures for early voluntary retirement; (p) (o) confer with the heads of other agencies about human resource policies and procedures; (q) (p) submit an annual report to the executive director, the governor, and the Legislature; and (r) (q) assist with the development of a vacant position report required under Subsection 63J-1-201(2)(b)(vi). (7) (a)After consultation with the executive director, the governor, and the heads of other agencies, the director shall establish and coordinate statewide training programs, including training described in Subsection (7)(e). (b)The programs developed under this Subsection (7) shall have application to more than one agency. (c)The division may not establish training programs that train employees to perform highly specialized or technical jobs and tasks. (d)The division shall ensure that any training program described in this Subsection (7) complies with Title 63G, Chapter 22, State Training and Certification Requirements. (e) (i)As used in this Subsection (7)(e): (A)"Employee" means the same as that term is defined in Section 63A-17-112. (B)"Supervisor" means an individual in a position at an agency, as defined in Section 63A-17-112, that requires the regular supervision and performance evaluation of an employee. (ii)A supervisor shall attend the training: (A)within six months of being promoted or hired to the position of supervisor; and (B)at least annually. (iii) Training attendance and the A supervisor's completion of training and effective use of training information and principles shall be considered in an evaluation of a the supervisor's job performance. (iv)The training shall include: (A)effective employee management and evaluation methods based on the pay for performance management system described in Section 63A-17-112; (B)instruction to improve supervisor and employee communications; (C)best practices for recognizing and retaining high-performing employees; (D)best practices for addressing poor-performing employees; and (E)any other information and principles identified by the division to improve management or organizational effectiveness. (8) (a) (i)The division may collect fees for training as authorized by this Subsection (8). (ii)Training funded from General Fund appropriations shall be treated as a separate program within the department budget. (iii)All money received from fees under this section will be accounted for by the department as a separate user driven training program. (iv)The user training program includes the costs of developing, procuring, and presenting training and development programs, and other associated costs for these programs. (b) (i)Funds remaining at the end of the fiscal year in the user training program are nonlapsing. (ii)Each year, as part of the appropriations process, the Legislature shall review the amount of nonlapsing funds remaining at the end of the fiscal year and may, by statute, require the department to lapse a portion of the funds. (9)Rules described in Subsection (6)(j) shall provide for at least three work days of paid bereavement leave for an employee: (a)following the end of the employee's pregnancy by way of miscarriage or stillbirth; or (b)following the end of another individual's pregnancy by way of a miscarriage or stillbirth, if: (i)the employee is the individual's spouse or partner; (ii) (A)the employee is the individual's former spouse or partner; and (B)the employee would have been a biological parent of a child born as a result of the pregnancy; (iii)the employee provides documentation to show that the individual intended for the employee to be an adoptive parent, as that term is defined in Section 78B-6-103 , of a child born as a result of the pregnancy; or (iv)under a valid gestational agreement in accordance with Title 78B, Chapter 15, Part 8, Gestational Agreement, the employee would have been a parent of a child born as a result of the pregnancy.

Section 4, Section 63A-17-112 is amended to read: 63A-17-112. Pay for performance management system -- Employees paid for performance. (1)As used in this section: (a) (i)"Agency" means, except as provided in Subsection (1)(a)(ii), the same as that term is defined in Section 63A-17-102. (ii)"Agency" does not include the State Board of Education, the Office of the State Treasurer, Office of the State Auditor, Office of the State Attorney General, Utah System of Higher Education, the Legislature, the judiciary, or, as defined in Section 63E-1-102, an independent entity. (b) (i)"Employee" means an employee of an agency. (ii)"Employee" does not include an individual in a schedule AB, as described in Section 63A-17-301, position. : (A) an individual in a schedule AB position, as described in Section 63A-17-301; (B) an individual in a position that is not eligible to receive a retirement benefit under Title 49, Utah State Retirement and Insurance Benefit Act; or (C) an individual that an agency hires for a time-limited position that will last fewer than 12 consecutive months. (c)"Pay for performance" means a plan for incentivizing an employee for meeting or exceeding to meet or exceed production or performance goals, in which the plan is well-defined before work begins, eligible work groups are defined, specific goals and targets for the employee are determined, and measurement procedures are in place , and specific incentives are provided when goals and targets are met . (d)"Pay for performance management system" means the system described in Subsection (2). (2)The division shall establish and, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules for the administration of a pay for performance management system. (3)The pay for performance management system shall include: (a)guidelines and criteria for an agency to adopt pay for performance policies and administer pay based on an employee's performance in furtherance of the agency's mission; (b)employee performance ratings; (c)requirements for written employee performance standards and expectations; (d)supervisor verbal and written feedback based on the standards of performance and behavior outlined in an employee's performance plan; and (e)quarterly written evaluation of an employee's performance. (4)In consultation with the division, no later than July 1, 2023, each agency shall: (a)adopt pay for performance policies based on the performance management system; and (b)subject to available funds and as necessary, adjust an employee's wage to reflect: (i)subject to Subsection (5), for a classified service employee, the salary range of the position classified plan for the employee's position; and (ii)an increase, decrease, or no change in the employee's wage: (A)commensurate to an employee's performance as reflected by the employee's evaluation conducted in accordance with the pay for performance management system; and (B)in an amount that is in accordance with the guidelines and criteria established for a wage change in the pay for performance management system. (5)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the division shall make rules authorizing a classified service employee to receive a wage that exceeds the salary range of the classified service employee's position classified plan if warranted based on the classified employee's performance rating.

Section 5, Section 63A-17-301 is amended to read: 63A-17-301. Career service -- Exempt positions -- Schedules for civil service positions -- Coverage of career service provisions. (1)Except as provided in Subsection (3)(d), the following positions are exempt from the career service provisions of this chapter and are designated under the following schedules: (a)schedule AA includes the governor, members of the Legislature, and all other elected state officers; (b)schedule AB includes appointed executives and board or commission executives enumerated in Section 67-22-2; (c)schedule AC includes all employees and officers in: (i)the office and at the residence of the governor; (ii)the Public Lands Policy Coordinating Office; (iii)the Office of the State Auditor; and (iv)the Office of the State Treasurer; (d)schedule AD includes employees who: (i)are in a confidential relationship to an agency head or commissioner; and (ii)report directly to, and are supervised by, a department head, commissioner, or deputy director of an agency or its equivalent; (e)schedule AE includes each employee of the State Board of Education that the State Board of Education designates as exempt from the career service provisions of this chapter; (f)schedule AG includes employees in the Office of the Attorney General who are under their own career service pay plan under Sections 67-5-7 through 67-5-13; (g)schedule AH includes: (i)teaching staff of all state institutions; and (ii)employees of the Utah Schools for the Deaf and the Blind who are: (A)educational interpreters as classified by the division; or (B)educators as defined by Section 53E-8-102; (h)schedule AN includes employees of the Legislature; (i)schedule AO includes employees of the judiciary; (j)schedule AP includes all judges in the judiciary; (k)schedule AQ includes: (i)members of state and local boards and councils appointed by the governor and governing bodies of agencies; (ii)a water commissioner appointed under Section 73-5-1; (iii)other local officials serving in an ex officio capacity; and (iv)officers, faculty, and other employees of state universities and other state institutions of higher education; (l)schedule AR includes employees in positions that involve responsibility: (i)for determining policy; (ii)for determining the way in which a policy is carried out; or (iii)of a type not appropriate for career service, as determined by the agency head with the concurrence of the director; (m)schedule AS includes any other employee: (i)whose appointment is required by statute to be career service exempt; (ii)whose agency is not subject to this chapter; or (iii)whose agency has authority to make rules regarding the performance, compensation, and bonuses for its employees; (n)schedule AT includes employees of the Division of Technology Services, designated as executive/professional positions by the director of the Division of Technology Services with the concurrence of the director of the division; (o)schedule AU includes patients and inmates employed in state institutions; (p)employees of the Department of Workforce Services, designated as schedule AW: (i)who are temporary employees that are federally funded and are required to work under federally qualified merit principles as certified by the director; or (ii)for whom substantially all of their work is repetitive, measurable, or transaction based, and who voluntarily apply for and are accepted by the Department of Workforce Services to work in a pay for performance program designed by the Department of Workforce Services with the concurrence of the director of the division; (q)subject to Subsection (6), schedule AX includes employees in positions that: (i)require the regular supervision and performance evaluation of one or more other employees; and (ii)are not designated exempt from career service under any other schedule described in this Subsection (1); and (r)for employees in positions that are temporary, seasonal, time limited, funding limited, or variable hour in nature, under schedule codes and parameters established by the division by administrative rule. (2)The civil service shall consist of two schedules as follows: (a) (i)Schedule A is the schedule consisting of positions under Subsection (1). (ii)Removal from any appointive position under schedule A, unless otherwise regulated by statute, is at the pleasure of the appointing officers without regard to tenure. (b)Schedule B is the competitive career service schedule, consisting of: (i)all positions filled through competitive selection procedures as defined by the director; or (ii)positions filled through a division approved on-the-job examination intended to appoint a qualified person with a disability, or a veteran in accordance with Title 71A, Chapter 2, Veterans Preference. (3) (a)The director, after consultation with the heads of concerned executive branch departments and agencies and with the approval of the governor, shall allocate positions to the appropriate schedules under this section. (b)Agency heads shall make requests and obtain approval from the director before changing the schedule assignment and tenure rights of any position. (c)Unless the director's decision is reversed by the governor, when the director denies an agency's request, the director's decision is final. (d) (i)An agency may file with the division a request a request with the division. (A) to keep a position scheduled as a schedule B position as a schedule B position; or (B) to reschedule a position that would otherwise be is scheduled as a schedule A position as a schedule B position. (ii)The division shall review a request filed under Subsection (3)(d)(i) and approve the request only if the exception is necessary to conform to a requirement imposed as a condition precedent to receipt of federal funds or grant of a tax benefit under federal law. (4) (a)Compensation for employees of the Legislature shall be established by the directors of the legislative offices in accordance with Section 36-12-7. (b)Compensation for employees of the judiciary shall be established by the state court administrator in accordance with Section 78A-2-107. (c)Compensation for officers, faculty, and other employees of state universities and institutions of higher education shall be established as provided in Title 53B, Chapter 1, Governance, Powers, Rights, and Responsibilities, and Title 53B, Chapter 2, Institutions of Higher Education. (d)Unless otherwise provided by law, compensation for all other schedule A employees shall be established by their appointing authorities, within ranges approved by, and after consultation with the director. (5)An employee who is in a position designated schedule AC and who holds career service status on June 30, 2010, shall retain the career service status if the employee: (a)remains in the position that the employee is in on June 30, 2010; and (b)does not elect to convert to career service exempt status in accordance with a rule made by the division. (6) (a)An employee who is hired for a schedule AX position on or after July 1, 2022, is exempt from career service status. (b)An employee who before July 1, 2022, is a career service employee employed in a schedule B position that is rescheduled to a schedule AX position on July 1, 2022, shall maintain the employee's career service status for the duration of the employee's employment in the same position unless the employee voluntarily converts to career service exempt status before July 1, 2023. (c) (i)Subject to Subsection (6)(c)(ii), an employee is exempt from career service status if: (A)before July 1, 2022, the employee was a probationary employee in a schedule B position and had not completed the probationary period; and (B)on July 1, 2022, the schedule B position in which the probationary employee is employed is rescheduled as a scheduled AX position. (ii)An employee described in Subsection (6)(c)(i): (A)is not a probationary employee on or after July 1, 2022; and (B)is exempt from career service status on and after July 1, 2022, unless the employee changes employment to a schedule B position. (d)The division shall disseminate to each employee described in Subsection (6)(b) information on financial and other incentives for voluntary conversion to career-service exempt status. (e)An agency, as defined in Section 63A-17-112, may adopt a policy, created in consultation with the division, for agency review of recommendations that schedule AX employees be suspended, demoted, or dismissed from employment.

Section 6, Section 63A-17-304 is amended to read: 63A-17-304. Promotion -- Reclassification -- Market adjustment. (1) (a)If an employee is promoted or the employee's position is reclassified to a higher salary range maximum, the agency shall place the employee employee's salary within the new range of the position. (b)An agency may not set an employee's salary: (i)higher than the maximum in the new salary range; or (ii)lower than the minimum in the new salary range of the position. (2)An agency shall adjust the salary range for an employee whose salary range is approved by the Legislature for a market comparability adjustment consistent with Subsection 63A-17-307 (5)(b)(i): (a)at the beginning of the next fiscal year; and (b)consistent with appropriations made by the Legislature. (3)Division-initiated revisions in the state classification system that result in consolidation or reduction of class titles or broadening of pay ranges: (a)may not be regarded as a reclassification of the position or promotion of the employee; and (b)are exempt from the provisions of Subsection (1).

Section 7, Section 63A-17-306 is amended to read: 63A-17-306. Dismissals and demotions -- Grounds -- Disciplinary action -- Procedure -- Reductions in force. (1)A career service employee may be dismissed or demoted: (a)to advance the good of the public service; or (b)for just causes cause, including inefficiency, incompetency, failure to maintain skills or adequate performance levels, insubordination, disloyalty to the orders of a superior, misfeasance, malfeasance, or nonfeasance in office. (2)An employee may not be dismissed because of race, sex, age, disability, national origin, religion, political affiliation, or other nonmerit factor including the exercise of rights under this chapter. (3)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the director shall make rules governing the procedural and documentary requirements of disciplinary dismissals and demotions. (4)If an agency head finds that a career service employee is charged with aggravated misconduct or that retention of a career service employee would endanger the peace and safety of others or pose a grave threat to the public interest, the employee may be suspended pending the administrative appeal to the department head as provided in Subsection (5). (5) (a) A An agency head may not demote or dismiss a career service employee may not be demoted or dismissed unless the department head or designated representative has complied with this subsection. unless: (b) (a) The department the agency head or the designated representative of the agency head notifies the employee in writing of the reasons reason for the dismissal or demotion . ; (c) (b) The the employee has no less than is given five working days to submit a written reply to the agency head and to have the reply considered by the department agency head . ; (d) (c) The the employee has an is given an opportunity to be heard by the department agency head or the designated representative . of the agency head; and (e) (d) Following the hearing, the employee may be dismissed or demoted if the department after completing the procedural requirements described in Subsections (5)(a) through (c), the agency head finds adequate cause or reason . to demote or dismiss the employee. (6) (a)Reductions in force required by inadequate funds, change of workload, or lack of work are governed by retention points established by the director. (b)Under those circumstances: (i)The agency head shall designate the category of work to be eliminated, subject to review by the director. (ii)Temporary and probationary employees shall be separated before any career service employee. (iii) (A)When more than one career service employee is affected, the employees shall be separated in the order of their retention points, the employee with the lowest points to be discharged first. (B)Retention points for each career service employee shall be computed according to rules established by the director, allowing appropriate consideration for proficiency and seniority in state government, including any active duty military service fulfilled subsequent to original state appointment. (c) (i)A career service employee who is separated in a reduction in force under this section shall be given preferential consideration when applying for a career service position. (ii)Preferential consideration under Subsection (6)(c)(i) applies only until the former career service employee accepts a career service position. (iii)The director shall make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, concerning the manner of granting preferential consideration under Subsection (6)(c)(i). (d) (i)An employee separated due to a reduction in force may appeal to the department head for an administrative review. (ii)The notice of appeal must be submitted within 20 working days after the employee's receipt of written notification of separation. (iii)The employee may appeal the decision of the department head according to the grievance and appeals procedure of this chapter and Title 67, Chapter 19a, Grievance Procedures.

Section 8, Section 63A-17-502 is amended to read: 63A-17-502. Overtime policies for state employees. (1)As used in this section: (a)"Accrued overtime hours" means: (i)for nonexempt employees, overtime hours earned during a fiscal year that, at the end of the fiscal year, have not been paid and have not been taken as time off by the nonexempt state employee who accrued them; and (ii)for exempt employees, overtime hours earned during an overtime year. (b)"Appointed official" means: (i)each department executive director and deputy director, each division director, and each member of a board or commission; and (ii)any other person employed by a department who is appointed by, or whose appointment is required by law to be approved by, the governor and who: (A)is paid a salary by the state; and (B)who exercises managerial, policy-making, or advisory responsibility. (c)"Department" means the Department of Government Operations, the Department of Corrections, the Department of Financial Institutions, the Department of Alcoholic Beverage Services, the Insurance Department, the Public Service Commission, the Labor Commission, the Department of Agriculture and Food, the Department of Human Services, the Department of Natural Resources, the Department of Transportation, the Department of Commerce, the Department of Workforce Services, the State Tax Commission, the Department of Cultural and Community Engagement, the Department of Health, the National Guard, the Department of Environmental Quality, the Department of Public Safety, the Commission on Criminal and Juvenile Justice, all merit employees except attorneys in the Office of the Attorney General, merit employees in the Office of the State Treasurer, merit employees in the Office of the State Auditor, Department of Veterans and Military Affairs, and the Board of Pardons and Parole. (d)"Elected official" means any person who is an employee of the state because the person was elected by the registered voters of Utah to a position in state government. (e)"Exempt employee" means a state employee who is exempt as defined by the Fair Labor Standards Act of 1978, 29 U.S.C. Sec. 201 et seq. (f)"FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Sec. 201 et seq. (g)"FLSA agreement" means the agreement authorized by the Fair Labor Standards Act of 1978, 29 U.S.C. Sec. 201 et seq., by which a nonexempt employee elects the form of compensation the nonexempt employee will receive for overtime. (h)"Nonexempt employee" means a state employee who is nonexempt as defined by the division applying FLSA requirements. (i)"Overtime" means actual time worked in excess of the employee's defined work period. (j)"Overtime year" means the year determined by a department under Subsection (4)(b) at the end of which an exempt employee's accrued overtime lapses. (k)"State employee" means every person employed by a department who is not: (i)an appointed official; (ii)an elected official; or (iii)a member of a board or commission who is paid only for per diem or travel expenses. (l)"Uniform annual date" means the date when an exempt employee's accrued overtime lapses. (m)"Work period" means: (i)for all nonexempt employees, except law enforcement and hospital employees, a consecutive seven day 24 hour work period of 40 hours; (ii)for all exempt employees, a 14 day, 80 hour payroll cycle; and (iii)for nonexempt law enforcement and hospital employees, the period established by each department by rule for those employees according to the requirements of the Fair Labor Standards Act of 1978, 29 U.S.C. Sec. 201 et seq. (2)Each department shall compensate each state employee who works overtime by complying with the requirements of this section. (3) (a)Each department shall negotiate and obtain a signed FLSA agreement from each nonexempt employee. (b)In the FLSA agreement, the nonexempt employee shall elect either to be compensated for overtime by: (i)taking time off work at the rate of one and one-half hour off for each overtime hour worked; or (ii)being paid for the overtime worked at the rate of one and one-half times the rate per hour that the state employee receives for nonovertime work the employee's regular hourly wage . (c)Any nonexempt employee who elects to take time off under this Subsection (3) shall be paid for any overtime worked in excess of the cap established by the division. (d)Before working any overtime, each nonexempt employee shall obtain authorization to work overtime from the employee's immediate supervisor. (e)Each department shall: (i)for employees who elect to be compensated with time off for overtime, allow overtime earned during a fiscal year to be accumulated; and (ii)for employees who elect to be paid for overtime worked, pay them for overtime worked in the paycheck for the pay period in which the employee worked the overtime. (f)If a department pays a nonexempt employee for overtime, that department shall charge that payment to that department's budget. (g)At the end of each fiscal year, the Division of Finance shall total all the accrued overtime hours for nonexempt employees and charge that total against the appropriate fund or subfund. (4) (a) (i)Except as provided in Subsection (4)(a)(ii), each department shall compensate exempt employees who work overtime by granting them time off at the rate of one hour off for each hour of overtime worked. (ii)The director of the division may grant limited exceptions to this requirement the compensation requirement described in Subsection (4)(a)(i) , where work circumstances dictate, by authorizing a department to pay employees an exempt employee for overtime worked at the rate per hour that the employee receives for nonovertime work, employee's regular hourly wage if that department has funds available. (b) (i)Each department shall: (A)establish in its written human resource policies a uniform annual date for each division that is at the end of any pay period; and (B)communicate the uniform annual date to its employees. (ii)If any department fails to establish a uniform annual date as required by this Subsection (4), the director of the division, in conjunction with the director of the Division of Finance, shall establish the date for that department. (c) (i)Any overtime earned under this Subsection (4) is not an entitlement, is not a benefit, and is not a vested right. (ii)A court may not construe the overtime for exempt employees authorized by this Subsection (4) as an entitlement, a benefit, or as a vested right. (d)At the end of the overtime year, upon transfer to another department at any time, and upon termination, retirement, or other situations where the employee will not return to work before the end of the overtime year: (i)any of an exempt employee's overtime that is more than the maximum established by division rule lapses; and (ii)unless authorized by the director of the division under Subsection (4)(a)(ii), a department may not compensate the exempt employee for that lapsed overtime by paying the employee for the overtime or by granting the employee time off for the lapsed overtime. (e)Before working any overtime, each exempt employee shall obtain authorization to work overtime from the exempt employee's immediate supervisor. (f)If a department pays an exempt employee for overtime under authorization from the director of the division, that department shall charge that payment to that department's budget in the pay period earned. (5)The division shall: (a)ensure that the provisions of the FLSA and this section are implemented throughout state government; (b)determine, for each state employee, whether that employee is exempt, nonexempt, law enforcement, or has some other status under the FLSA; (c)in coordination with modifications to the systems operated by the Division of Finance, make rules: (i)establishing procedures for recording overtime worked that comply with FLSA requirements; (ii)establishing requirements governing overtime worked while traveling and procedures for recording that overtime that comply with FLSA requirements; (iii)establishing requirements governing overtime worked if the employee is "on call" and procedures for recording that overtime that comply with FLSA requirements; (iv)establishing requirements governing overtime worked while an employee is being trained and procedures for recording that overtime that comply with FLSA requirements; (v)subject to the FLSA, establishing the maximum number of hours that a nonexempt employee may accrue before a department is required to pay the employee for the overtime worked; (vi)subject to the FLSA, establishing the maximum number of overtime hours for an exempt employee that do not lapse; and (vii)establishing procedures for adjudicating appeals of any FLSA determinations made by the division as required by this section; (d)monitor departments for compliance with the FLSA; and (e)recommend to the Legislature and the governor any statutory changes necessary because of federal government action. (6) (a)In coordination with the procedures for recording overtime worked established in rule by the division, the Division of Finance shall modify its payroll and human resource systems to accommodate those procedures. (b)Notwithstanding the procedures and requirements of Title 63G, Chapter 4, Administrative Procedures Act, Section 63A-17-602, and Section 67-19a-301, any employee who is aggrieved by the FLSA designation made by the division as required by this section may appeal that determination to the director of the division by following the procedures and requirements established in division rule. (c)Upon receipt of an appeal under this section, the director shall notify the executive director of the employee's department that the appeal has been filed. (d)If the employee is aggrieved by the decision of the director, the employee shall appeal that determination to the Department of Labor, Wage and Hour Division, according to the procedures and requirements of federal law.

Section 9. Effective date. This bill takes effect on May 1, 2024.