The bill mandates a legislative management study focused on state employee compensation levels during the 2025-26 interim. This study will evaluate the classified state employee total rewards compensation system, examining various aspects such as the history of classification and pay grade changes, comparisons of state employee compensation with similar private sector jobs, and the effectiveness of equity funding and bonuses in employee retention. Additionally, the study will assess the payment of prevailing wages on state projects, wage levels in contract awards, the impact of changes to health plan benefits, and the premium rate structures for both single and family coverage.

Upon completion of the study, the legislative management is required to report its findings and recommendations to the seventieth legislative assembly, including any necessary legislation to implement these recommendations. This initiative aims to ensure that state employee compensation is competitive and equitable, ultimately enhancing employee retention and satisfaction.