# Title 54 — State Government

## Chapter 54-44.3 — Central Personnel System

### § 54-44.3-01. Purpose of chapter.

The general purpose of this chapter is to create North Dakota human resource
management services in order to establish a unified system of human resource management for
the classified service of the state based upon merit principles and scientific methods, governing
the position classification, pay administration, and transfer of its employees. All appointments
and promotions to positions in the state classified service must be made without regard to sex,
race, color, national origin, age, religious affiliations, or political opinions on the basis of merit
and fitness.
### § 54-44.3-01.1. Compensation relationships - Policy.

It is the policy of this state to establish equitable, nondiscriminatory compensation
relationships among all positions and classes within the state's classification plan.
### § 54-44.3-01.2. Compensation philosophy statement.

The compensation program for classified state employees must be designed to recruit,
retain, and motivate a quality workforce for the purpose of providing efficient and effective
services to the citizens of North Dakota. For purposes of this section, "compensation" is defined
as base salary and related fringe benefits.
The compensation program must:
1. Provide a competitive employee compensation package based on job content
evaluation, internal equity, and external competitiveness balanced by the state's fiscal
conditions.
2. Be based on principles of fairness and equity.
3. Include a consistent compensation policy which allows for multiple pay structures to
address varying occupational specialties.
4. Set the external competitiveness target for salary range midpoints at a competitive
level of relevant labor markets. For purposes of this section, "relevant labor markets" is
defined as the labor markets from which the state attracts employees in similar
positions and the labor markets to which the state loses employees in similar
positions.
5. Include a process for providing compensation adjustments that considers a
combination of factors, including achievement of performance objectives or results,
competency determinations, recognition of changes in job content, and acquisition and
application of advanced skills or knowledge.
6. Provide funding for compensation adjustments based on the dollar amounts
determined necessary to provide competitive compensation in accordance with the
state's compensation philosophy. Funding for compensation adjustments may not be
provided as a statewide percentage increase attributable to all employees nor as part
of a statewide pool of funds designated for addressing equity issues.
7. Consider the needs of the state as an employer and the tax effect on North Dakota
citizens.
The office of management and budget shall develop and consistently administer the
compensation program for classified state employees and ensure that state agencies adhere to
the components of the state's compensation philosophy. The office of management and budget
shall regularly conduct compensation comparisons to ensure that the state's compensation
levels are competitive with relevant labor markets. Any salary information collected from private
businesses for the purpose of conducting compensation comparisons is exempt from public
disclosure. Records naming private businesses from which salary information is collected are
open.
The legislative assembly recognizes the importance of providing annual compensation
adjustments to employees based on performance and equity to maintain the market
competitiveness of the compensation system.

### § 54-44.3-02. Definitions.

As used in this chapter, unless the context clearly requires otherwise:
1. "Appointing authority" means the authority to appoint to positions in the classified
service and is reserved to officials and heads of departments and agencies within the
government.
2. "Board" means the state personnel board.
3. "Director" means the director of North Dakota human resource management services.
4. "Division" means North Dakota human resource management services.
5. "Employee" means any person who occupies a position in the classified service.
6. "Officer" means an employee of the state government who is appointed and serves at
the pleasure of an official, board, or commission.
7. "Official" means a member of the state government elected by popular vote.
### § 54-44.3-03. State personnel board - Composition - Terms - Vacancies - Qualifications.

1. The state personnel board is composed of the director, who must be the chairman of
the board; one member appointed by the governor; two members elected by
employees classified under sections 54-44.3-19 and 54-44.3-20; and one member with
a professional human resource background appointed by the governor.
2. The term of each member of the board, except the director, must be for six years. The
director's term coincides with employment as director. Any permanent vacancy in office
must be filled by the eligible person who received the next highest vote total in the
previous election. If the eligible person is not available for the unexpired term the
permanent vacancy in office must be filled in the same manner as the selection of the
person vacating the office.
3. Each member of the board must be a resident of the state for at least sixty days and
must be known to be in sympathy with the application of merit principles to public
employment. No member of the board may have held a position in a political party
within four years immediately preceding the member's appointment or election to the
board, and those members of the board elected by classified employees must be
full-time employees in good standing of the classified service.
### § 54-44.3-04. Compensation and expenses of members of board.

Each member of the board is entitled to compensation at the rate of fifty dollars for each day
employed in the official duties of the board and other expenses as provided for by law.
### § 54-44.3-05. Secret ballot election - Guidelines.

The secretary of state shall develop guidelines for a secret ballot election among all
employees eligible under sections 54-44.3-19 and 54-44.3-20 to carry out the election of the two
members of the board elected by classified employees. All elections of members of the board
are the responsibility of the director who will ensure that proper and due notification is given to
all employees in sufficient time to enable potential candidates to initiate necessary petitions and
conduct campaigns. Nominees for candidacy are required to submit petitions containing no less
than one hundred names of employees in good standing classified under sections 54-44.3-19
and 54-44.3-20. All elections will be conducted through a secret ballot process.
### § 54-44.3-06. Meetings.

The board shall organize annually at the first meeting of each fiscal year. It shall meet at
least once a year and at such times and places as are specified by call of the chairman or any
three members of the board. All meetings must be open to the public. Three members constitute
a quorum for the transaction of business. Three favorable votes are necessary for the passage
of any resolutions or taking of any official action by the board at any meeting.

### § 54-44.3-07. Duties of board.

The primary responsibility of the board is to foster and assure a system of personnel
administration in the classified service of state government. In carrying out this function, the
board shall:
1. Adopt any rules and hold any hearings as are necessary to properly perform the
duties, functions, and powers imposed on or vested in the board by law. The adoption
of rules must be accomplished in accordance with chapter 28-32.
2. Hear, consider, and determine appeals by nonprobationary employees in the classified
service related to position classifications and pay grade assignments.
3. Ensure that the director includes the activities of the board in the office of management
and budget's biennial report.
4. Keep minutes and maintain records necessary to assure the equitable administration
of this chapter.
### § 54-44.3-08. Testimony - Call witnesses - Request production of papers.

The board, as a body, may invite and hear witnesses, and request the production of books
and papers or any other physical evidence pertinent to any investigation or hearing authorized
by this chapter. Witnesses who testify at the invitation of the board shall receive remuneration in
the same amount and manner received by witnesses in North Dakota district courts.
### § 54-44.3-09. Board secretariat.

The division shall serve as the secretariat to the board.
### § 54-44.3-10. Action to secure compliance with chapter.

The board may maintain such action or proceeding at law or in equity as the board
considers necessary or appropriate to secure compliance with this chapter and its rules and
orders thereunder. The attorney general may assign an assistant attorney general as legal
adviser and counsel to both the board and the division. The attorney general is responsible for
representing the personnel system in all legal contexts.
### § 54-44.3-11. North Dakota human resource management services - Director -

Appointment - Removal.
North Dakota human resource management services is created within the office of
management and budget under the supervision and control of a director who is responsible for
the performance and exercise of the duties, functions, and powers imposed upon the division.
1. The director must be experienced in the field of human resource management and
shall hold considerable knowledge of merit principles, goals, and their methods of
operation.
2. The director of the office of management and budget shall appoint the director. The
position of director is not a classified position and the director shall serve at the
pleasure of the director of the office of management and budget.
### § 54-44.3-12. Duties of director.

The director shall direct and supervise, with the approval of the director of the office of
management and budget, all the administrative and technical activities of the division. In
addition to the duties imposed elsewhere in this chapter, the director shall:
1. Establish general policies, rules, and regulations, subject to the approval of the board,
which are binding on the agencies affected, and which apply to the employees in the
classified service. These rules must provide for:
a. Establishing and maintaining a classification plan.
b. Establishing and maintaining a compensation plan.
c. Promoting a consistent application of personnel policies.
d. Enhancing greater uniformity in matters relating to probationary periods, hours of
work, leaves of absence, separations, transfers, disciplinary actions, grievance
procedures, and performance management.

e. Ensuring fair treatment and compliance with equal employment opportunity and
nondiscrimination laws.
2. Establish and maintain a roster of all employees in the state classified service in which
there must be set forth, as to each employee, the class title of the position occupied,
the salary or pay, change in class title, and any other personnel data that the division
deems necessary.
3. Select for appointment under this chapter such employees of the division and such
experts and special assistants as are necessary to carry out effectively the provisions
of this chapter. Salaries and positions of personnel in the division must conform to the
classification and pay plan provided by this chapter.
4. Assist the employee-appointing authorities, in accordance with the provisions of this
chapter and the rules adopted thereunder, in the preparation and administration of
appropriate selection procedures.
5. Encourage and assist in the development of personnel administration within the
various departments and agencies of the state.
6. Cooperate with employee-appointing authorities and other supervisory officers in the
conduct of employee training programs.
7. Develop procedures that, notwithstanding any other law, must be followed by all state
agencies and institutions for employees in the state classified service, to ensure that
all salaries are paid in a manner consistent with the state's compensation,
classification, and salary administration policies.
8. Consult with state agencies and institutions in the development of salary
administration procedures for employees in the state classified service.
9. Recognize knowledge, skills, complexity, accountability, and working condition hazards
as compensable factors of the state's classification plan, required in the performance
of work for all positions in the state classified service.
10. Develop guidelines for allowing exceptions to the rules of the classification and
compensation plans for use when the market salaries of specific positions are not
consistent with the state's compensation policy.
11. Conduct in-state and out-of-state labor market surveys that are representative of the
state's classified service occupations to enable the state to position itself accurately
against the market.
12. Communicate classification and compensation policies to the managers and
employees in the state-classified service by providing written information on the state's
classification and compensation procedures.
13. Adopt rules, subject to the approval of the board, to ensure compliance with and
resolve compliance issues relating to agencies required by state or federal law or rule
to be subject to a merit personnel system.
### § 54-44.3-12.1. Revisions to compensation plan.

Revisions to the compensation plan may only be made on July first, following the close of a
regular legislative session, except that new classifications may be added to the compensation
plan during a biennium when deemed necessary by the director. Revisions to the compensation
plan for county employees covered by the plan become effective on January first of the first full
calendar year following the revision or on July first following the close of a regular legislative
session, based on official action by the board of county commissioners. Revisions to the
compensation plan may only be made to the extent the legislative assembly appropriates funds
to implement such plans.
### § 54-44.3-12.2. Employee complaints - Cooperation in development and implementation

of basic agency grievance procedures and a statewide appeal mechanism - Appeals.
It is the intent of the state of North Dakota to assure fair and equitable treatment and
promote harmony between and among all classified employees by requiring affected agencies
to adopt grievance procedures and through the creation of a statewide appeals mechanism with
primary jurisdiction to entertain and resolve classified employee appeals. It is the policy of this
state to resolve bona fide employee complaints as quickly as possible. The division shall

cooperate with and assist the various departments, agencies, and institutions of the state in the
development and implementation of basic agency grievance procedures and a statewide appeal
mechanism. The division shall certify appeals from nonprobationary employees in the classified
service which are related to discrimination, merit system qualification, reprisals, reduction in
force, forced relocation, demotion with loss of pay, suspension without pay, and dismissal, and
from applicants for positions in the classified service and probationary employees in the
classified service which are related to discrimination or reprisal. Upon receipt of an appeal, the
division shall submit a written request to the director of the office of administrative hearings to
designate an administrative law judge for the division to conduct the hearing and related
proceedings, including receiving evidence and preparing findings of fact, conclusions of law, and
issuing a final decision. The moving party in the initial action bears the burden of proof in the
appeal. An appeal to the district court from the determination of the administrative law judge
must be filed according to chapter 28-32, including proper service upon the division, but neither
the division nor the office of administrative hearings may be named as a party to the appeal
under chapter 28-32 unless an employee of one of those two agencies is involved in the
grievance.
### § 54-44.3-13. Records and information to be furnished.

All departments and agencies covered by the personnel system shall furnish any
reasonably necessary, nonprivileged records and information to the division which the division
requests, except records made confidential by statute.
### § 54-44.3-14. Records public.

The records of the division and the board, except such records as the statutes may require
to be held confidential, are public records and must be open to public inspection, subject to
regulations as to the time and manner of inspection which may be prescribed by the division or
board.
### § 54-44.3-14.1. Mediation - Open records exemption - Retaliation prohibition.

Records of the division relating to mediation services provided by the division are exempt
from section 44-04-18. An employee may not be discharged, disciplined, or penalized
concerning the employee's compensation, conditions, location, or other privileges of
employment because of the employee's request for or participation in the mediation services
provided by the division.
### § 54-44.3-15. Payment disapproved by director.

The director may disapprove the payment for personal service for any person holding a
position in the classified service, except a person appointed to a position for the duration of an
emergency, if the director determines that the person named therein has not been classified and
is not imminently to receive classification in accordance with the provisions of this chapter and
the rules and orders thereunder or that the rate of pay is not authorized.
### § 54-44.3-16. Agency personnel officers.

The elected or appointed chief officer of each agency or department of the service shall
designate a staff employee to serve as personnel officer for that division of the service to assist
the chief officer in that person's duty to administer personnel responsibilities specified in this
chapter and by the personnel rules. The designated personnel officer of each agency or
department shall certify to the agency elected or appointed chief officer that each person
holding a position in the classified service authorized for payment through payroll has been
classified in accordance with the provisions of this chapter and the rules and orders under this
chapter and that the rate of pay is within established current salary ranges or excepted from the
ranges by written authorization by the director.

### § 54-44.3-17. Grant-in-aid programs.

Whenever the provisions of any law, rule, order, or regulation of the United States or of any
federal agency or authority providing or administering federal funds for use in North Dakota
require civil service or merit standards or classifications other than those required by the
provisions of this chapter and rules and regulations promulgated under this chapter, then the
provisions of such law, rule, order, or regulation must prevail and must govern the employees
affected thereby. The division shall provide those services necessary to comply with merit
standards for federal grant-in-aid agencies.
### § 54-44.3-18. Authority to provide services to cities and political subdivisions.

The division may enter into agreement with any city or political subdivision of the state to
furnish services and facilities of the division to the city or political subdivision in the
administration of its personnel on merit principles. Any such agreement must provide for the
reimbursement to the state of the cost of the services and facilities furnished, such
reimbursements to be deposited to the credit of the general fund. All cities and political
subdivisions of the state may enter into such agreements.
### § 54-44.3-19. Board authority to provide service to cities, political subdivisions, and

other entities.
The board may enter into agreement with any city or political subdivision of this state to
furnish any of its services and facilities, other than factfinding or conciliation services, and the
agreement must provide for reimbursement to the state of the cost of the services and facilities
furnished. All cities and political subdivisions of this state may enter into the agreements. The
board and division shall provide coverage to other agencies or political subdivisions as may by
federal laws or regulations be required to be subject to a personnel system in order to obtain
federal grants-in-aid. The board and division shall provide coverage to political subdivisions
upon the request of the subdivisions. Other agencies, departments, or divisions or positions
may be placed under the complete or limited board and division personnel plan in the manner
and to the extent the legislative assembly shall by law direct.
### § 54-44.3-20. Categories of positions in the state service.

All positions in the state service are included in the classified service, except:
1. Each official elected by popular vote and each person appointed to fill vacancies in an
elective office, one principal assistant, and one private secretary.
2. Members of boards and commissions required by law.
3. Administrative heads of departments required by law, other than the superintendent of
the life skills and transition center, the superintendent of North Dakota vision services -
school for the blind, the superintendent of the school for the deaf, and the state
librarian.
4. Officers and employees of the legislative branch of government.
5. Members of the judicial branch of government of the state of North Dakota and their
employees and jurors.
6. Persons temporarily employed in a professional or scientific capacity as consultants or
to conduct a temporary and special inquiry, investigation, or examination for the
legislative branch of government or a department of the state government.
7. Positions deemed to be inappropriate to the classified service due to the special
nature of the position as determined by the division and approved by the board.
8. Employees of the institutions of higher education under the control of the state board
of higher education.
9. Members and employees of occupational and professional boards.
10. Officers and employees of the North Dakota mill and elevator association.
11. Positions referred to under law as serving at the pleasure of or at the will of the
appointing authority.
12. Licensed teachers engaged in teaching at the North Dakota youth correctional center,
North Dakota vision services - school for the blind, and the school for the deaf.

13. Officers of workforce safety and insurance.
14. Officers and employees of the department of commerce.
15. Attorneys employed by the insurance commissioner.
16. Engineers, engineering technicians, and geologists employed by the director of
mineral resources.
17. Officers and employees of the Bank of North Dakota.
18. Investment and fiscal operations positions of the state retirement and investment office
necessary for the management of the investment of funds under the control of the
state investment board.
19. Attorneys employed by the commission on legal counsel for indigents.
### § 54-44.3-21. Employment only under approved class title.

No person may be appointed to or employed in a position in the classified service under a
class title which has not been approved by the director as appropriate to the duties to be
performed.
### § 54-44.3-22. Limitations on inquiries in application or test - Discrimination prohibited.

No question in any form of application or in any test may be so framed as to elicit any
information concerning the political or religious opinions or affiliations of any applicant, nor may
any inquiry be made concerning such opinions or affiliations. All disclosures thereof must be
discountenanced. No discrimination may be exercised, threatened, or promised by any person
in the employ of any division of the service or of the personnel division against or in favor of any
applicant, eligible, or employee because of sex, race, color, national origin, age, or religious or
political opinions or affiliations.
### § 54-44.3-23. Veterans' preferences.

Veterans' preferences must be in accordance with chapter 37-19.1.
### § 54-44.3-24. Application of chapter to existing employees.

All employees in positions which are in the classified service as defined in this chapter and
who, prior to July 1, 1975, have served continuously for a period of six months or more, or as
regular seasonal employees have satisfactorily served in such positions through one seasonal
service period, shall be certified to such positions, and grades and classifications, under the
personnel system, and shall not be subject to examination or trial service periods of
employment.
### § 54-44.3-25. Prohibited conduct.

1. No person may make any false statement, certificate, mark, rating, or report with
regard to any test, certification, or appointment made under this chapter, or in any
manner commit or attempt to commit any fraud preventing the impartial execution of
this chapter and the rules.
2. No person may, directly or indirectly, give, render, pay, offer, solicit, or accept any
money, service, or other valuable consideration for or on account of any appointment,
proposed appointment, promotion, or proposed promotion to, or any advantage in, a
position in the classified service.
3. No employee of the division, examiner, or other person may defeat, deceive, or
obstruct any person in that person's right to examination, eligibility, certification, or
appointment under this chapter, or furnish to any person any special or confidential
information for the purpose of affecting the rules or prospects of any person with
respect to employment in the classified service.
### § 54-44.3-26. Penalty.

Any person who intentionally violates any provision of this chapter is guilty of an infraction
and, upon conviction thereof, is, for a period of one year, ineligible for appointment or
employment in the classified service.

### § 54-44.3-27. Transfer of records of merit system council.

All personnel and records of the North Dakota merit system council are hereby transferred
to the division created by this chapter.
### § 54-44.3-28. College student cooperative education or intern program - Eligibility.

The director shall establish and administer within the executive and legislative branches of
state government a program through which college students may receive stipends and
academic credit for participating in a cooperative education or internship program. The program
must be open to any student enrolled in a public or private educational institution in this state
which has been accredited by an agency recognized by the United States department of
education. The director shall establish classifications and develop uniform application
procedures for the cooperative education or internship program.
### § 54-44.3-29. Acceptance of federal funds.

The director is authorized to accept federal funds through grant-aided agencies or directly
for the purpose of operating or ensuring operation of a merit personnel system.
### § 54-44.3-30. Agencies subject to merit system.

All personnel employed by the department of health and human services, the regional
offices of that department, job service North Dakota, North Dakota human resource
management services, department of environmental quality, and other agencies or political
subdivisions as may by federal law or rule be required to be subject to a merit system in order to
obtain federal grants-in-aid are covered by the merit system provided in this chapter. Merit
system coverage must also be provided to personnel employed as purchasing agents or buyers
in the purchasing division of the office of management and budget. Other agencies,
departments, or divisions and positions must be placed under a merit system in the manner and
to the extent required by law.
### § 54-44.3-31. Political subdivision may request to be exempted from state merit system.

A political subdivision subject to the merit system under this chapter may file a request with
the division and the commissioner of the department of health and human services or
commissioner's designee to be exempted from the merit system. The request must describe a
plan and policy that assures the political subdivision has developed a merit system plan that
meets federal standards for personnel administration. The division and the commissioner of the
department of health and human services or commissioner's designee shall authorize the
political subdivision plan within sixty days of receiving a request under this section if the plan
and policies meet federal requirements. If the division and the commissioner of the department
of health and human services or commissioner's designee determine that the proposed plan
and policies fail to meet the federal requirements, the division and the commissioner or
designee shall deny the request and notify the requester of the specific reasons for the denial.
### § 54-44.3-32. Political subdivision merit system compliance.

The division and the department of health and human services shall develop oversight and
audit procedures for political subdivision merit systems to assure compliance with federal merit
system principles. If the division and the department of health and human services determine
that a political subdivision has failed to maintain compliance with federal merit system principles,
the division and the department shall notify the political subdivision of the noncompliance and
order the political subdivision to take corrective action. If a political subdivision does not take the
necessary corrective action to comply with federal merit system principles, the division and the
department of health and human services shall revoke the political subdivision's exemption from
the state merit system and return the political subdivision to the state merit system. The political
subdivision is responsible for any penalty assessed by a federal authority for a noncompliant
political subdivision merit system.
