Legislature House of Representatives House Research State Government
Process for Determining State Employee Compensation
Compensation and other terms and conditions of employment for state employees generally are
not prescribed in statute.
The legislature establishes salary maximums for executive agency heads. The governor proposes specific salaries within these
statutory maximums. These specific salaries must be approved by the legislature.
Compensation and terms and conditions of employment are determined by collective bargaining
for most state employees, and by special compensation plan for employees who are
not covered by a collective bargaining agreement.
- About 90 percent of executive branch employees are covered by collective
bargaining agreements negotiated between their union and the state.
- The Commissioner of Management and Budget proposes compensation plans for employees
who are not unionized. One plan covers only state agency managers, and another
covers most other non-unionized executive branch employees. These plans are
similar in coverage to collective bargaining agreements. Like collective
bargaining agreements, the plans are subject to legislative approval.
- Statute provides for special compensation plans to cover certain groups of
employees, such as employees of constitutional officers, administrative law
judges, and certain administrative personnel in the higher education systems.