COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:0214H.01I Bill No.:HB 337 Subject:State Employees; Employees - Employers; Department of Labor and Industrial
Relations; State Departments; Labor and Management
Type:Original Date:March 3, 2025Bill Summary:This proposal modifies provisions relating to holiday leave from work for
alternative work schedules.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2026FY 2027FY 2028General Revenue
Fund$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Total Estimated Net
Effect on General
Revenue$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
*According to OA, the unknown cost would consider the number of employees working the
compressed work week, the number of holidays defined in law and granted by executive order,
and these employees’ calculated hourly rate multiplied times 2 hours (for the number of hours
that exceed the 8-hour holiday period). Oversight assumes these cost could exceed $250,000.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Other State Funds*$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)Total Estimated Net
Effect on Other State
Funds$0 to (Unknown)$0 to (Unknown)$0 to (Unknown)
Numbers within parentheses: () indicate costs or losses. L.R. No. 0214H.01I
Bill No. HB 337
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ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2026FY 2027FY 2028Total Estimated Net
Effect on FTE 000
☒ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2026FY 2027FY 2028Local Government$0$0$0 L.R. No. 0214H.01I
Bill No. HB 337
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FISCAL ANALYSIS
ASSUMPTION
§105.009 – Alternative Work Schedules
Officials from the Office of Administration – Division of Purchasing (OA) assume this
proposal specifies if a state holiday falls on a state employee's regularly scheduled ten-hour
workday, the employee shall not be required to use annual leave to make up the difference
between the eight hours of credited holiday and the employee's regularly scheduled ten-hour day.
OA notes that RSMo, 1 CSR 5.010(2)(G) states, “(G) For purposes of these rules, a holiday is
considered as a period of eight (8) hours.
OA assumes this proposal indicates employees cannot be mandated to use annual leave for the 2
extra hours. It does not say that it’s not allowed. Based upon OA’s interpretation:
1. Employees could request annual leave, comp time, or leave without pay for the 2-hour
difference.
2. Or OA’s Appointing Authority (AA)/Commissioner can determine if the extra 2 hours
will be compensated under 1 CSR 20-5.020(8)(B)5, which states “5. Because of
extraordinary reasons sufficient in the opinion of the appointing authority to warrant such
time off with compensation”.
If option 1. is followed, there is no cost. If option 2. is followed, the cost would vary depending
on upon OA’s AA/Commissioner approving the number of OA employees allowed to work a
compressed 4-day work week composed of 10-hour days. The cost of this option would consider
the number of employees working the compressed work week, the number of holidays defined in
law and granted by executive order, and these employees’ calculated hourly rate multiplied times
2 hours (for the number of hours that exceed the 8-hour holiday period).
Based on the language proposed, the Office of Administration, Division of Personnel, concludes
that the fiscal impact will be $0 to unknown.
Officials from the Office of the State Auditor (SAO) state that the SAO currently affords staff
members the option to elect to work an alternative ten-hour, four-day work week. When a state
holiday falls on an employee's regularly scheduled work day, the employee receives 8 holiday
hours for the day. The employee has the option to request annual leave or flex the additional two
hours. At current staffing levels, the SAO could lose out on 2,730 working hours in a calendar
year (13 holidays x 2 hours X 105 employees) or the equivalent of 1.3 FTE. If the SAO is fully
staffed at the budgeted 157 FTE, that impact rises to 4,082 working hours, or the equivalent of 2
FTE. Due to the fact that much of the work conducted by the SAO is statutorily required and/or
time sensitive, the provisions contained in this proposed legislation could require the addition of
2 staff auditors. L.R. No. 0214H.01I
Bill No. HB 337
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Oversight notes the cost of 2 FTE is estimated to be around $180,000. Oversight assumes this
estimation is based on all state holidays landing on a 10 hour work day.
Oversight does not have any information to the contrary. Oversight assumes the range of cost is
possible based on interpretation of the proposed language. Oversight notes the number of
employees who work a 10 hour/day schedule is unknown and therefore utilization of this
proposed legislation is unknown.
Oversight will range the cost as $0 (employees can choose to use annual/comp time or leave
without pay to make up the two-hour difference (Option 1 listed above)) to unknown cost (time
is given off without having to take leave (Option 2 listed above)) to the General Revenue Fund
and Other State Funds.
Oversight notes that if each agency allows a flex schedule, each agency could have a potential
cost similar to the SAO. Therefore, Oversight assumes the cost could exceed $250,000.
Officials from the Office of the State Courts Administrator (OSCA) assume there may be
some impact but there is no way to quantify that currently. Any significant changes will be
reflected in future budget requests.
In response to a similar proposal from last year, HB 1565, officials from the OSCA assumed the
proposal would have no fiscal impact on their organization.
Oversight does not anticipate an impact to OSCA. If this assumption is incorrect, this would
alter the fiscal impact as presented in this fiscal note. If additional information is received,
Oversight will review it to determine if an updated fiscal note should be prepared and seek
approval to publish a new fiscal note.
Officials from the Attorney General’s Office, Office of Administration - Administrative
Hearing Commission, the Department of Economic Development, the Department of
Elementary and Secondary Education, the Department of Higher Education and
Workforce Development, the Department of Labor and Industrial Relations, the
Department of Revenue, the Department of Public Safety (Capitol Police Alcohol &
Tobacco Control, Fire Safety, Gaming Commission, Missouri Highway Patrol, State
Emergency Management Agency and Veterans Commission the Missouri National Guard,
the Department of Social Services, the Office of the GovernorMissouri Department of
AgricultureMissouri Ethics Commission, the Missouri National Guard, the Joint
Committee on Administrative Rules, the Joint Committee on Public Employee Retirement,
the Missouri Lottery Commission, the Missouri Consolidated Health Care Plan, the
Missouri House of Representatives, the Missouri Senate, the Office of the Secretary of State,
the Office of the State Public Defender the Office of the State Treasurer, the Legislative
Research, the Oversight Division, the Missouri State Employees Retirement System and the
State Tax Commission each assume the proposal will have no fiscal impact on their respective
organizations for this proposal. L.R. No. 0214H.01I
Bill No. HB 337
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Oversight notes that the above mentioned agencies have stated the proposal would not have a
direct fiscal impact on their organization. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact on the fiscal note.
Officials from the Office of Administration - Budget and Planning, the Department of
Commerce and Insurance, the Department of Health and Senior Services, the Department
of Mental Health, the Department of Natural Resources, the Department of Corrections, the
Department of Public Safety – Directors Office, the Missouri Department of Conservation,
and the defer to the Office of Administration for the
potential fiscal impact of this proposal.
FISCAL IMPACT – State GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028GENERAL REVENUE FUND*Cost – OA
Alternative Work Schedules §105.009
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
THE GENERAL REVENUE FUND
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
OTHER STATE FUNDS*Cost – OA
Alternative Work Schedules §105.009
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
ESTIMATED NET EFFECT TO
OTHER STATE FUNDS
$0 to
(Unknown)
$0 to
(Unknown)
$0 to
(Unknown)
*According to OA, the unknown cost would consider the number of employees working the
compressed work week, the number of holidays defined in law and granted by executive order,
and these employees’ calculated hourly rate multiplied times 2 hours (for the number of hours
that exceed the 8-hour holiday period). Oversight assumes these cost could exceed $250,000.
FISCAL IMPACT – Local GovernmentFY 2026
(10 Mo.)
FY 2027FY 2028$0$0$0 L.R. No. 0214H.01I
Bill No. HB 337
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FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
FISCAL DESCRIPTION
The bill allows for flexibility in work schedules for State agencies allowing implementation of a
compressed work week schedule of a four-day work week composed of 10 hours a day, if
deemed appropriate by the relevant authorities. If a State holiday falls on an employee's regularly
scheduled 10 hour work day, the employee will not be required to use his or her own annual
leave to make up the difference between the eight hours of credited holiday time and the
employee's usual 10 hour day.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Attorney General’s Office
Department of Commerce and Insurance
Department of Economic Development
Department of Elementary and Secondary Education
Department of Higher Education and Workforce Development
Department of Health and Senior Services
Department of Mental Health
Department of Natural Resources
Department of Corrections
Department of Labor and Industrial Relations
Department of Revenue
Department of Public Safety
Office of the Director
Division of Alcohol and Tobacco Control
Capitol Police
Fire Safety
Missouri Gaming Commission
Missouri Highway Patrol
Missouri National Guard
State Emergency Management Agency
Missouri Veterans Commission
Department of Social Services
Office of the Governor
Joint Committee on Public Employee Retirement
Joint Committee on Administrative Rules
Missouri Lottery Commission L.R. No. 0214H.01I
Bill No. HB 337
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Legislative Research
Oversight Division
Local Government Employees Retirement System
Missouri Consolidated Health Care Plan
Missouri Department of Agriculture
Missouri Department of Conservation
Missouri Ethics Commission
Missouri House of Representatives
Office of the Lieutenant Governor
Missouri Department of Transportation
Missouri State Employee's Retirement System
MoDOT & Patrol Employees’ Retirement System
Missouri Office of Prosecution Services
Office of Administration
Administrative Hearing Commission
Budget and Planning
Facilities Management, Design and Construction
Office of the State Courts Administrator
Office of the State Auditor
Missouri Senate
Office of the Secretary of State
Office of the State Public Defender
Office of the State Treasurer
Public Schools and Education Employee Retirement Systems
State Tax Commission
Julie MorffJessica HarrisDirectorAssistant DirectorMarch 3, 2025March 3, 2025