UtahUtah agencies will offer employees paid time off instead of annual and sick leave
By a date set no later than July 1, 2027, state agencies will offer paid time off instead of annual and sick leave to covered employees.
What it does
Agencies will offer covered employees paid time off instead of annual leave and sick leave. Current employees choose once; new hires and employees who miss the election deadline enter the program.
Employers make biweekly retirement matches for qualifying employees. After the change date, Tier II employees receive a full match on their first $26 in contributions and a half match on additional contributions.
Each agency must run a leave bank. Employees may donate paid time off, but not sick leave, for coworkers who meet the agency’s eligibility rules.
Employees may convert unused annual leave or paid time off into eligible retirement savings when they leave state employment or retire. A separate yearly option requires legislative approval and full funding.
Appointed executives and board or commission executives receive the listed employee benefits, including paid time off.
Argument forEmployees could share paid time off through agency leave banks, which may help coworkers who meet the agency’s eligibility rules.
Argument againstEmployees who miss the one-time election deadline would enter the paid time off program and could not later change their choice.
More detail
Agencies will offer paid time off instead of annual leave and sick leave to covered employees. The program covers current agency employees who choose it or miss the election deadline, and employees hired or rehired on or after the change date. Current employees must make a one-time choice by the deadline set by the Division of Finance; employees who miss it enter the paid time off program and cannot later change their choice. New or rehired employees hired on or after the change date enter the paid time off program. The Division of Finance sets the change date, which must be no later than July 1, 2027. Paid time off begins on that date.
Employers will make biweekly retirement matching contributions for qualifying employees under different rules for legacy and Tier II employees. The rules cover qualifying state agency employees who receive retirement benefits and accrue paid leave, with separate rules for legacy and Tier II employees. On or after the change date, legacy qualifying employees receive a 100% match; for Tier II qualifying employees, the match is 100% on the first $26 contributed and 50% on any amount above $26. Employees hired on or after July 1, 2023, are automatically enrolled to contribute up to the lesser of the employer contribution amount or $26. They may opt out, but then may not receive an employer contribution. Federal law and the annual amount set by the Legislature also apply. The match rules change on the change date, which the Division of Finance must set no later than July 1, 2027.
Each agency must run a leave bank where employees may donate paid time off for distribution to eligible coworkers. Each state agency must establish and administer a leave bank program for its employees. Donations are voluntary, and employees may not donate sick leave. Agencies distribute leave to employees who meet the agency’s eligibility criteria.
Employees may convert unused annual leave or paid time off into eligible retirement savings accounts when employment ends or at retirement. The conversion rules apply to state employees with unused annual leave or paid time off and an eligible retirement savings account. The account must be sponsored by the Utah State Retirement Board and meet federal requirements; the amount converted cannot exceed the federal calendar-year limit. A separate yearly option is available only if the Legislature specifically authorizes and fully funds its estimated cost in an annual appropriations act. That option is limited to 20 hours and $250 in value, and cannot reduce leave below the maximum accrual limit. The first conversion applies when employment ends or the employee retires. The yearly option applies only in a calendar year approved and fully funded by the Legislature.
The law lists paid time off among the benefits available to appointed executives and board or commission executives. This applies to appointed executives and board or commission executives covered by the statute.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 24Governor Spencer Cox SignedBecame Law
- Mar 13Senate/ to GovernorTo Governor
- Mar 13Senate/ received enrolled bill from PrintingMinor
- Mar 12Senate/ enrolled bill to Printing
- Mar 12Enrolled Bill Returned to House or SenateMinor
- Mar 6Draft of Enrolled Bill Prepared
- Mar 6Bill Received from Senate for EnrollingMinor
- Mar 6Senate/ signed by President/ sent for enrollingMajor
- Mar 6Senate/ received from HouseMinor
- Mar 5House/ to Senate
- Vote recorded Senate/ concurs with House amendment. Result: pass.Upper
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Vote recorded House/ failed. Result: fail.Lower
- Mar 5House/ signed by Speaker/ returned to SenateMajor
- Mar 5House/ received from SenateMinor
- Mar 5Senate/ to House
- Mar 5Senate/ concurs with House amendmentMajor
- Mar 5Senate/ uncircled
- Mar 5LFA/ fiscal note publicly available for SB0229S04
- Mar 5Senate/ circled
- Mar 5Senate/ placed on Concurrence Calendar
- Mar 5Senate/ received from HouseMinor
- Mar 5House/ to Senate
- Mar 5House/ passed 3rd readingPassed House
- Mar 5House/ substituted
- Mar 5House/ motion to reconsider
- Mar 5LFA/ fiscal note sent to sponsor for SB0229S04
- Mar 5LFA/ bill sent to agencies for fiscal input for SB0229S04
- Mar 5LFA/ bill assigned to staff for fiscal analysis for SB0229S04
- Mar 5House/ to Senate
- Mar 5House/ failedMajor
- Mar 5LFA/ fiscal note publicly available for SB0229S03
- Mar 5House/ substituted
- Mar 5House/ uncircled
- Mar 5LFA/ fiscal note sent to sponsor for SB0229S03
- Mar 5LFA/ bill sent to agencies for fiscal input for SB0229S03
- Mar 5LFA/ bill assigned to staff for fiscal analysis for SB0229S03
- Mar 5House/ circled
- Mar 5House/ 3rd readingMinor
- Mar 5House/ 2nd readingMinor
- Mar 5House/ Rules to 3rd Reading Calendar
- Mar 3House/ return to Rules due to fiscal impact [House Rules Committee]
- Mar 3House/ committee report favorable [House Government Operations Committee]Minor
- Mar 3House Comm - Favorable Recommendation [House Government Operations Committee]Minor
- Feb 27House/ to standing committee [House Government Operations Committee]Minor
- Feb 27House/ 1st reading (Introduced)Minor
- Feb 26House/ received from SenateMinor
- Vote recorded Senate/ passed 3rd reading. Result: pass.Upper
- Feb 26Senate/ to House
- Feb 26Senate/ passed 3rd readingPassed Senate
- Feb 26Senate/ substituted
- Feb 26Senate/ uncircled
- Feb 26LFA/ fiscal note publicly available for SB0229S02
- Feb 26LFA/ fiscal note sent to sponsor for SB0229S02
- Feb 24LFA/ bill sent to agencies for fiscal input for SB0229S02
- Vote recorded Senate/ passed 2nd reading. Result: pass.Upper
- Feb 24LFA/ bill assigned to staff for fiscal analysis for SB0229S02
- Feb 24Senate/ circled
- Feb 24Senate/ 3rd readingMinor
- Feb 24Senate/ passed 2nd readingMinor
- Feb 24Senate/ 2nd readingMinor
- Feb 13LFA/ fiscal note publicly available for SB0229S01
- Feb 12LFA/ fiscal note sent to sponsor for SB0229S01
- Feb 12Senate/ placed on 2nd Reading Calendar
- Feb 12Senate/ comm rpt/ substituted [Senate Revenue and Taxation Committee]
- Feb 11Senate Comm - Favorable Recommendation [Senate Revenue and Taxation Committee]Minor
- Feb 11Senate Comm - Substitute Recommendation [Senate Revenue and Taxation Committee]Major
- Feb 11LFA/ bill sent to agencies for fiscal input for SB0229S01
- Feb 11LFA/ bill assigned to staff for fiscal analysis for SB0229S01
- Feb 6Senate/ received fiscal note from Fiscal AnalystMinor
- Feb 6LFA/ fiscal note publicly available for SB0229
- Feb 5LFA/ fiscal note sent to sponsor for SB0229
- Feb 3Senate/ to standing committee [Senate Revenue and Taxation Committee]Minor
- Feb 2Senate/ 1st reading (Introduced)Minor
- Feb 2Senate/ received bill from Legislative ResearchMinor
- Jan 30LFA/ bill sent to agencies for fiscal input for SB0229
- Jan 30LFA/ bill assigned to staff for fiscal analysis for SB0229
- Jan 30Numbered Bill Publicly Distributed
- Jan 30Bill Numbered but not DistributedIntroduced
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