§ 54-06-14 — Annual leave and sick leave for state employees (Effective through April 30, 2026)

2026)
Annual leave and sick leave must be provided for all persons 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.
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. 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. 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 appropriated by the
legislative assembly to that agency, unit, or entity for salaries and wages. Any state agency, unit,
or entity which employs persons 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.
Annual leave and sick leave for state employees. (Effective after April 30, 2026)
1. a. Annual leave and sick leave must be provided for all individuals 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 appropriated by the legislative assembly to
that agency, unit, or entity for salaries and wages.
2. A state agency, unit, or entity that employs an 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.