FARGO (AP) - City employees here will be paid their regular wages during their annual military training.

A firefighter who has challenged the city's military leave policy, calling it "antimilitary," now calls it "a step in the right direction."

City commissioners voted this week to revise the policy so employees on active duty orders for 30 days or less will be paid with regular W-2 wages and accrue vacation and sick leave benefits.

Those on active duty orders for more than 30 days will still have their wages reported as 1099 income, meaning they won't accrue benefits.

The city had been treating all wages paid to employees on military leave as 1099 income. A 1099 is the Internal Revenue Service form used to report miscellaneous income other than wages, salaries and tips. It's commonly used to report payments to independent contractors.

Chris Pieper, a firefighter and staff sergeant with the Air National Guard's 119th Fighter Wing in Fargo, filed a complaint with the U.S. Labor Department over the dispute, which mostly affects Fargo police and firefighters in the National Guard and reserve.

Pieper called the revised policy a positive change, but added that for employees deployed for more than 30 days, "it still puts us in a tough position."

A Labor Department representative in June informed Fargo city officials that its policy may violate the Uniformed Services Employment and Reemployment Rights Act of 1994 and could be considered discrimination against those who serve in the military.

A Labor Department investigator couldn't resolve the issue with the city and has referred Pieper's complaint to the U.S. attorney general for consideration of legal action.

City officials contend they are following a 37-year-old IRS rule that says when an employee is called to active military service, the relationship between employee and employer is terminated.