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SENATE FLOOR VERSION
April 12, 2023
COMMITTEE SUBSTITUTE
FOR ENGROSSED
HOUSE BILL NO. 2376 By: Kannady of the House
and
Hall of the Senate
[ state government - Oklahoma Personnel Act -
payments - limits - leave – conditions - repealer -
effective date -
emergency ]
BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 840-2.18, as
amended by Section 14, Ch apter 243, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 840-2.18), is amended to read as follows:
Section 840-2.18 A. A longevity pay plan is hereby adopted .
This plan applies to all state employees, excluding members of
boards and commissions, institutions under the administrative
authority of the Oklahoma State Regents for Higher Education,
employees of public school dist ricts, and elected o fficials. The
plan shall also apply to those employees of the Oklahoma School for
the Blind and the Oklahoma School for the Deaf who qualify for
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longevity pay in accordance with subsection G of Section 1419 of
Title 10 of the Oklahoma Statutes.
B. The Oklahoma Conservation Commission is hereby authorized to
establish a longevity pay program for employees of the conservation
districts employed under Section 3-3-103 of Title 27A of the
Oklahoma Statutes. Such longevity pay program shall be consistent
with the longevity pay program for state employees authorized under
this title and payments shall be made in a manner consistent with
procedures for reimbursement to conservation districts.
C. To be eligible for longevity pay, employees mus t have been
continuously employed in the service of the state for a minimum of
two (2) years in full-time status or in part-time status working
more than one thousand (1,000) hours a year.
For purposes of this section, a break in service of thirty ( 30)
calendar days or less shall not be considered an interruption of
continuous service; a break in service of more than thirty (30)
calendar days shall mark an end to continuous service. The
legislative session employees who have worked for two (2) years or
more in part-time status and are eligible for state retirement
benefits, but do not receive other longevity payments, shall be
eligible and shall be considered to have been continuously employed
for purposes of calculating longevity payments, notwithst anding the
provisions of subsection E of this section.
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D. 1. Longevity pay for the first twenty (20) years of service
shall be determined pursuant to the following schedule:
Years of Service Annual Longevity Payment
At least 2 years but
less than 4 years $250.00
At least 4 years but
less than 6 years $426.00
At least 6 years but
less than 8 years $626.00
At least 8 years but
less than 10 years $850.00
At least 10 years but
less than 12 years $1,062.00
At least 12 years but
less than 14 years $1,250.00
At least 14 years but
less than 16 years $1,500.00
At least 16 years but
less than 18 years $1,688.00
At least 18 years but
less than 20 years $1,900.00
At least 20 years $2,000.00
2. For each additional two (2) years of service after the first
twenty (20) years an additional Two Hundred Dollars ($200.00) shall
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be added to the amount stated above for twenty (20) years of
service.
The total amount of the annual longevity payment made to an
employee by any and all state agencies in any year shall not exceed
the amount shown on the table corresponding to that employee’s years
of service with the state, except as otherwise provided by Section
840-2.28 of this title. Further, no employee shall receive
duplicating longevity payments for the same periods of service with
any and all agencies, except as otherwise provided by Section 840-
2.28 of this title.
E. To determine years of service, cumulativ e periods of full-
time employment or part-time employment working more than one
hundred fifty (150) hours per month with the state excluding service
as specified in subsection A of this section are applicab le. Part-
time employment, working one hundred fif ty (150) hours per month or
less for the state, excluding service as specified in subsection A
of this section, shall be counted only if:
1. The period of employment was continuous for at least five
(5) months; and
2. a. The person worked more than two-fifths (2/5) time.
Other employment shall not be counted as service for
purposes of longevity payments. Further, no period of
employment with the state, whether with one or more
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than one agency, shall be count ed as more than full-
time service.
b. For the purposes of computation requir ed by this
section, any service performed by a person during
which the person received compensation for duties
performed for the state shall be counted if payment
for such service was made using state fiscal
resources. The prov isions of this subparagraph shall
not apply to elected or appointed justices or judges,
including special judges, who perform service in the
trial or appellate courts. The provisions of this
section shall apply to persons who perform services as
an administrative law judge within the executive
department and employees of the judicial branch.
F. Years of service under the administrative authority of the
Oklahoma State Regents for Higher E ducation or the administrative
authority of the Oklahoma Department of Career and Technology
Education of any employee who is now employed in a job
classification which is eligible for longevity pay shall be included
in years of service for purposes of det ermining longevity pay.
G. Years of service shall be certified through the current
employing agency by the appointing authority on a form approved by
the Office of Management and En terprise Services. The form shall be
completed and posted as directed by the Director of the Office of
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Management and Enterprise Services by the current employing agency
when the employee initially enters on duty with the agency and
thereafter whenever th e employee’s anniversary date is changed.
H. Eligible employees, in full -time status or in part-time
status working more than one hundred fifty (150) hours per month,
shall receive one (1) lump-sum annual payment, in the amount
provided on the preceding s chedule, during the month following the
anniversary date of the employee ’s most recent enter-on-duty day
with the state. Upon implementation of the statewide information
systems project, the lump-sum annual payment may be paid concurrent
with the final payroll of the month of the employee’s anniversary
date. Eligible part-time employees who work one hundred fifty (150)
hours per month or less shall receive one (1) lump-sum annual
payment, based on the formula in subsection L of this section,
during the month following the anniversary date of the employee’s
most recent enter-on-duty day with the state. To receive longevity
pay an employee must be in pay status on or after his or her
anniversary date.
Eligible employees who would not otherwise receive annua l
longevity payments because their employment includes regular periods
of leave without pay in excess of thirty (30) calendar days shall
receive one (1) lump-sum annual payment, based on the formula in
subsection L of this section, during:
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1. The month of August if the employee is in pay status on July
1; or
2. During the month following the employee’s first return to
duty that fiscal year if the employee is not in pay status on July
1.
Except as otherwise provided by Section 840-2.28 of this title,
employees terminated as a result of a re duction-in-force or retiring
from state employment shall receive upon said termination or
retirement the proportionate share of any longevity pay ment which
may have accrued as of the date of termination or retirement.
Provided further, that, the proportionate share of any longevity
payment which may have accrued as of the date of death of an
employee shall be made to the surviving spouse of the emp loyee or if
there is no surviving spouse to the estate of the employee.
I. Periods of leave without pay taken in accordance with
Section 840-2.21 of this title shall be counted as service. Other
periods of nonpaid leave status in excess of thirty (30) ca lendar
days shall not mark a break in service; however, they shall:
1. Not be used in calculating total months of service for
longevity pay purposes; and
2. Extend the anniversary date for longevity pay by the total
period of time on nonpaid leave status except as provided in
subsection H of this section for employees whose conditions of
employment include regula r periods of leave without pay.
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J. Employees currently receiving longevity pay who work for the
judicial branch of state government or who work for the Oklahoma
Department of Career and Technology Education shall not be eligible
for the longevity pay plan provided for in this section.
K. A break in service with the state in excess of thirty (30)
days but which does not exceed two (2) years which was caused by a
reduction-in-force shall be treated as if it were a period of
nonpaid leave status as provided for in subsection I of this section
for the purpose of calculating total months of service for longevity
pay. This subsection shall only apply t o state employees laid off
after June 30, 1982.
L. Eligible part-time employees working less than one hundred
fifty (150) hours per month and other eligible employees with
regular annual periods of leave without pay of more than thirty (30)
calendar days will receive a prorated share of the “Annual Longevity
Payment” authorized in subsection D of this section . The prorated
amount of payment will be based on actual hours worked in the
immediately preceding twelve (12) months.
M. An employee shall not be e ntitled to retroactive longevity
payments as a result of amendments to this section unless
specifically authori zed by law.
N. The Director of the Office of Management and Enterprise
Services is authorized to promulgate such Longevity Pay Plan Rules
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as he or she finds necessary to carry out the provisions of this
section.
O. As of July 1, 1998, years of service wi th a city-county
health department for employees who left a city-county health
department for employment with the Department of Environmental
Quality or the Oklahoma Department of Agriculture, Food, and
Forestry, between July 1, 1993, and July 1, 1998, and who are now
employed in a job classification that is eligible for longevity pay
pursuant to this section, shall be included in years of service for
purposes of determining longevity pay subsequent to July 1, 1998.
P. As of July 1, 2003, years of service with a local
conservation district shall be included in years of service for
purposes of determining longevity pay for local conservation
district employees transferred to the Oklahoma Conservation
Commission pursuant to the provisions of this section.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 840-2.20, as
amended by Section 16, Chapt er 243, O.S.L. 2022 (74 O.S. Supp. 20 22,
Section 840-2.20), is amended to read as follows:
Section 840-2.20 A. The Director of the Office of Management
and Enterprise Services shall promulgate such emergency and
permanent rules regarding leave and holiday leave as are necessary
to assist the state and its agencies.
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The Director of the Office of Management and Enterprise
Services, in adopting new rules, amendin g rules and repealing rules,
shall ensure that the following provisions are incorporated:
1. Eligible employees who enter on duty or who are reinstated
after a break in service shall receive leave benefits in accordance
with the schedule outlined below . Leave shall be accrued based upon
hours worked, paid leave, and holidays, but excluding overtime, not
to exceed the total possible work hours for the pay period. Years
of service shall be based on cumulative periods of employment
calculated in the manner that cumulative service is determined for
longevity purposes pursuant to Section 840-2.18 of this title.
Employees may accumulate more than the maximum annual leave
accumulation limits shown in the schedule below provided that such
excess is used during t he same calendar year in which it accrues or
within twelve (12) months of the date on which it accrues, at the
discretion of the appointing authority. If an employee whose job
duties include providing fire protection services, law enforcement
services or services with the Department of Corrections is unable to
use excess leave as provided for in this paragraph because the
employee’s request for leave is denied by the employee’s appointing
authority and the denial of leave is due to extraordinary
circumstances such that taking leave could pose a threat to public
safety, health or welfare, the employee shall receive compensation
at the employee’s regular rate of pay for the amount of excess leave
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the employee is unable to use. Such compensation shall be paid at
the end of the time period during which the excess leave was
required to have been used;
2. From November 1, 2001 On and after the effective date of
this act, the following accrual rates and accumulation limits apply
to eligible employees as follows:
ACCRUAL RATES ACCUMULATION
LIMITS
Cumulative
Years of Annual Sick Annual
Service Leave Leave Leave
Persons employed 0-5 yrs = 15 day/yr 15 days/yr 30 days
5-10 yrs = 18 day/yr 15 days/yr 60 80 days
10-20 yrs = 20 day/yr 15 days/yr 60 80 days
over 20 yrs = 25 day/yr 15 days/yr 60 80 days
Following an emergency declaration as described in Section 683.8
of Title 63 of the Oklahoma Statutes, the accumulation limits for
annual leave shall temporarily increase and shall carryover to the
end of the fiscal year following the year in which the emergency
declaration ended.
All annual leave that accrued or expired during the period of
the emergency declarations issued by the Governor in 2020 and 2021
in response to the novel coronavirus (COVID-19) shall carry over to
the end of the fiscal year following the year in which the emergency
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declaration ended regardless of regulatory provisions that establish
a maximum amount of annual leave that may be accumulated by an
employee of the State of Oklahoma this state. Expired annual leave
governed by this subsection shall be reinstated as of the effective
date of this act May 7, 2021, and accumulation limits for annual
leave shall not apply to amounts accrued or reinstated pursuant to
this subsection. Eligibility for reinstatement of annual leave is
limited to employees currently employed by the State of Oklahoma
this state on the effective date of this act May 7, 2021;
3. Temporary employees and other limited term employees are
ineligible to accrue, use, or be paid for sick leave and annual
leave. Such employees shall be eligible for paid holiday leave at
the discretion of the appointing authority;
4. Except as provided in paragraph 2 of this subsection,
employees shall not be entitled to retroactive accumulation of leave
as a result of amendments to this section;
5. The Director of the Office of Management and Enterprise
Services shall assist agencies in developing policies to prevent
violence in state government workplaces without abridging the rights
of state employees. Such policies shall include a paid
administrative leave provision as a cooling-off period which the
Director of the Office of Management and Enterprise Services is
authorized to provide pursuant to the Administrative Procedures Act.
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Such leave shall not be charged to annual or sick leave
accumulations;
6. State employees who terminated their employment in the state
service on or after October 1, 1992, may be eligible to have sick
leave accrued at the time of termination of employment restored if
they return to state employment provided that the state employees’
enter-on-duty dates for reemployment occur on or before two (2)
years after their termination of employment and they are eligible to
accrue sick leave before the two (2) years expire;
7. Employees who are volunteer firefighters pursuant to the
Oklahoma Volunteer Firefighters Act and who are called to fight a
fire shall not have to use any accrued leave or need to make up any
time due to the performance of their volunteer firefighter duties;
8. Employees who are reserve municipal police officers pursuant
to Section 34-101 of Title 11 of the Oklahoma Statutes and who miss
work in performing their duties in cases of emergency shall not have
to use any accrued leave or need to make up any time due to the
performance of their reserve municipal police officer duties; and
9. Employees who are reserve deputy sheriffs pursuant to
Section 547 of Title 19 of the Oklahoma Statutes and who miss work
in performing their duties in case of emergency shall not have to
use any accrued leave or need to make up any time due to the
performance of their reserve deputy sheriff duties; and
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10. For the purposes of computation required by this section,
any service performed by a person during wh ich the person received
compensation for duties performed for the state shall be counted if
payment for such service was made using state fiscal resources. The
provisions of this subparagraph shall not apply to elected or
appointed justices or judges, inc luding special judges, who perform
service in the trial or appellate courts. The provisions of this
section shall apply to p ersons who perform services as an
administrative law judge within the executive department and
employees of the judicial branch.
B. Nothing in law is intended to prevent or discourage an
appointing authority from discipli ning or terminating an employee
due to abuse of leave benefits or absenteeism. Appointing
authorities are encouraged to consider attendance of employees in
making decisions regarding promotions, pay increases, and
discipline.
C. Upon the transfer of a f unction in state government to an
entity outside state government, employees may, with the agreement
of the outside entity, waive any payment for leave accumulations to
which the employee is entitled and authorize the transfer of the
leave accumulations or a portion thereof to the outside entity.
D. All permanent employees of the state shall be eligible to
carry over a maximum of six hundred forty (640) hours of an nual
leave each year. Additionally, all employees shall be paid up to a
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maximum of six hundred forty (640) hours of annual leav e upon
separation from state service.
E. Any employee, including employees of the state, who makes an
agreement with an employer, including the state, whether in writing
or verbally, not to compete with the employer after the employment
relationship has been terminated, shall be permitted to engage in
the same business as that conducted by the former employer, or in a
similar business as that conducted by the former employer as long as
the former employee does not direct ly or indirectly, actively or
inactively, solicit the sale of good s, services, or a combination of
goods and services from the customers of the former employer or
independent contractors of the former employer. Any provision in a
contract between an employer and an employee in conflict with the
provisions of this sectio n shall be void and unenforceable.
SECTION 3. REPEALER 15 O.S. 2021, Section 219A, is
hereby repealed.
SECTION 4. This act shall become effective July 1, 2023.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effec t and
be in full force from and after its passage and approval .
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 12, 2023 - DO PASS AS AMENDED BY CS