Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
HOUSE BILL NO. 1170
(Representatives Motschenbacher, Bahl, Christy, Fisher, Dressler)
(Senators Cleary, Dwyer, Gerhardt)
AN ACT to amend and reenact section 54-06-14 of the North Dakota Century Code, relating to state
employee annual leave; and to provide an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 54-06-14 of the North Dakota Century Code is amended and
reenacted as follows:
54-06-14. Annual leave and sick leave for state employees.
1.a.Annual leave and sick leave must be provided for all personsindividuals in the permanent
employment of this state who are not employed under a written contract of hire setting
forth the terms and conditions of their employment, within the limitations, terms, and
provisions of this section.
b.A state agency, unit, or entity that employs an individual subject to this section shall, upon
hire, grant the individual forty hours of new hire leave to use within the first year of
employment. Any new hire leave remaining after completion of the first year of
employment is eliminated. New hire leave is not earned paid time off and is not paid out
upon separation of employment.
c.Annual leave for an employee entitled to it must be within a range of a minimum of one
working day per month of employment to a maximum of two working days per month of
employment, based on tenure of employment, to be fixed by rules adopted by the
employing unit. The employing unit may grant, at hire, annual leave within the
parameters of one to two working days per month, which may exceed the amount based
on tenure of employment, if the position being hired for was previously identified as a
hard - to - fill occupation under subsection 5 of section 54 - 06 - 31 and the agency has
satisfied the requirements under subsection 1 of section 54 - 06 - 31. Sick leave for an
employee entitled to it must be within a range of a minimum of one working day per
month of employment to a maximum of one and one-half working days per month of
employment, based on tenure of employment, to be fixed by rules adopted by the
employing unit.
d.Annual leave must be compensated for on the basis of full pay for the number of working
days' leave credited to the employee. Sick leave must be compensated for on the basis
of full pay for absence due to illness on working days during tenure of employment. An
employee with at least ten continuous years of state employment is entitled to a lump
sum payment equal to one-tenth of the pay attributed to the employee's unused sick
leave accrued under this section. An employee's years of state employment must be
deemed continuous if, under the official personnel policy of an agency, unit, or entity, the
employee's work is terminated because of a reduction in force and the employee is
reinstated in any agency, unit, or entity within two years, or if the employee is placed on
voluntary leave status without pay and the leave lasts no longer than two years for
education purposes, or one year for any other voluntary leave without pay. The pay
attributed to the accumulated, unused sick leave must be computed on the basis of the
employee's salary or wage at the time the employee leaves the employ of the state and
at the rate of one hour of pay for each hour of unused sick leave. The agency, unit, or
entity that last employed the employee shall make the lump sum payment from funds H. B. NO. 1170 - PAGE 2
appropriated by the legislative assembly to that agency, unit, or entity for salaries and
wages. Any
2.A state agency, unit, or entity whichthat employs personsan individual subject to this section
shall formulate and adopt rules governing the granting of annual leave and sick leave which
will effectuate the purpose of this section and best suit the factors of employment of that
employing unit. Each employing unit shall file with the office of management and budget a
copy of the rules adopted, including any amendments or additions to the rules.
SECTION 2. EFFECTIVE DATE. This Act becomes effective on May 1, 2026. H. B. NO. 1170 - PAGE 3
____________________________ ____________________________
Speaker of the House President of the Senate
____________________________ ____________________________
Chief Clerk of the House Secretary of the Senate
This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
Assembly of North Dakota and is known on the records of that body as House Bill No. 1170.
House Vote: Yeas 61 Nays 29 Absent 4
Senate Vote:Yeas 36 Nays 10 Absent 1
____________________________
Chief Clerk of the House
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State