Panel approves new-hire 40-hour leave and allows modified accrual for hard-to-fill positions

The State and Local Government Committee gave a do-pass recommendation, as amended, to House Bill 1170, which would grant all new state employees 40 hours of “new-hire” annual leave available on day one and permit agencies to modify annual-leave accrual rates for hard-to-fill positions. The committee adopted an amendment setting the bill’s effective date to May 1, 2026; the amendment passed 6-0 and the final do-pass as amended passed by roll call with a 5-0-1 tally.

Representative Mike Machenbacher, sponsor of the bill, said the measure is intended to give agencies another recruiting tool and clarified the leave is distinct from annual leave that must be paid out on separation. “This is just simply a small morsel of an additional benefit that would provide a small incentive to new employees,” Machenbacher said, adding the up-front 40 hours would expire if not used during the first year and would not be paid out at separation.

Molly Harrington, chief people officer and director of Human Resource Management Services at the Office of Management and Budget, testified in support and recommended viewing the change in the context of a total-rewards review. Harrington said the measure would help new employees manage health and well-being needs during the first year and that the modified accrual authority is limited to annual leave for positions already designated as hard to fill, a distinction intended to reduce discrimination concerns.

Agency witnesses described recruitment problems that the bill aims to address. Jill Kringstead of the Public Service Commission and Shelley Miller of the North Dakota Information Technology Department (NDIT) offered examples of mid- and late-career candidates who declined offers or later had to use leave without pay because they had little or no accrued leave at hire. NDIT said that in 2024, 18% of its external new hires used leave without pay in their first year for health or personal reasons.

Senators moved two procedural steps during the hearing. Senator Barta moved the amendment adding the May 1, 2026 effective date; the committee approved the amendment 6-0. Senator Brownberger moved a due-pass recommendation as amended; the roll call for the final motion recorded aye votes from Chair Roars, Vice Chair Castaneda, Senators Barta, Brownberger and Lee; the record shows one member did not vote, producing a 5-0-1 tally. Committee members discussed the operational need for a May 2026 effective date to permit computer-system configuration and alignment with the state’s May leave-balance cycle.