Lawmakers press agencies on high overtime; OPM says hires after pay plan may reduce hours though dollars could remain up

Lawmakers asked for more data on concentrated overtime spending across state agencies and whether recent hiring under the FY26 pay plan is reducing overtime hours.

Representative Lademan and others noted that for the quarter in the packet DHS and Department of Correction accounted for large shares of overtime payments; Representative Lademan pointed to roughly $3.6 million in overtime for the quarter and asked why two or three agencies accounted for almost all of it. Kaye Barnhill responded that corrections historically has the most overtime because institutions run 24/7 and that direct-care institutional positions (CNAs, LPNs, RNs) are exempt from the hiring freeze and may be hired as needed.

Barnhill told the committee that after the new pay plan went live Jan. 23 the state hired "123, 128 people at DDS," which she presented as evidence the pay plan is already increasing hires. She said the state would prepare a report showing trends in overtime, turnover and vacancy data so the committee can monitor whether increased hiring reduces overtime costs.

Why it matters: Overtime concentrated in a few agencies raises questions about staffing strategy, service continuity and cost effectiveness. Committee members said they want a report that tracks hires, vacancies and overtime dollars and hours so they can assess whether the pay plan's gains in recruitment translate to lower overtime use.

Senator Hill observed that even if overtime hours decline, overtime dollars can rise when base pay increases; Barnhill agreed that pay increases can raise dollar totals even as hours fall and committed to providing trend data.

Next steps: Staff agreed to develop and deliver a follow-up report showing overtime trends, vacancy and hiring data, and early indicators of the pay plan's effect on overtime.