Relating to the payment of employment compensation by certain state agencies.

Contracts

• Payroll & HRIS Vendors: Review Service Level Agreements (SLAs) with state agency clients immediately. If your pricing model relies on "per-run" or "per-transaction" fees, this legislation effectively doubles the processing volume for Schedule A employees. You must enforce or renegotiate volume-based pricing clauses.
• Treasury Management: Vendors managing float or disbursement for state entities must amend banking agreements to account for accelerated cash outlays occurring twice monthly rather than the single end-of-month disbursement.

Hiring/Training

• Private Sector HR: No internal training required. However, recruitment strategies for administrative and clerical roles (Salary Groups A12-A17) must be adjusted. The "monthly pay" stigma that previously deterred candidates from state employment has been removed.
• State Vendors: Technical support staff must be trained to handle "split-cycle" inquiries, where a single agency client operates two simultaneous pay frequencies.

Reporting & Record-Keeping

• State Vendors: You must document the specific "election" date chosen by each agency client to switch cycles. This is critical for defending against potential audit discrepancies regarding tax withholding timing and quarterly reporting cutoffs.

Fees & Costs

• Processing Costs: For vendors, operational costs for processing, printing, and ACH transmission will increase due to higher frequency.
• Cash Flow: State agencies electing this change will accelerate cash outlays, potentially impacting interest income on funds previously held until month-end.