Connecticut House Bill HB05756

Connecticut 2013 Regular Session

• Introduced: 1/23/13
• Refer: 1/23/13
• Report Pass: 3/12/13
• Refer: 3/22/13
• Report Pass: 3/28/13
• Refer: 4/25/13

Caption

An Act Concerning The Standard Wage And Employers Receiving Assistance From State Economic Development Agencies.

Impact

The bill is expected to significantly influence state law by mandating wage levels for certain employees in organizations benefiting from state financial support. Non-compliance with these wage requirements can lead to penalties, including the necessity for organizations to repay the financial assistance received, alongside civil penalties. By enforcing these standards, the bill seeks to enhance accountability among businesses that rely on public funds and are expected to contribute positively to the local economy by providing fair wages to their employees.

Summary

House Bill 05756, titled 'An Act Concerning The Standard Wage And Employers Receiving Assistance From State Economic Development Agencies,' aims to establish specific wage standards for employees of businesses receiving significant state financial assistance. Effective January 1, 2014, any business receiving over $500,000 in financial aid from the Department of Economic and Community Development or Connecticut Innovations, Inc. will be required to pay its employees involved in food and building service sectors at least the standard wage established by state law. This provision is intended to ensure that public funds support fair compensation for workers in sectors reliant on state assistance.

Sentiment

The sentiment surrounding HB 05756 appears to be largely favorable among labor advocates and some lawmakers who see it as a means to protect vulnerable workers and promote fair labor practices. However, there are concerns from some business sectors which argue that the mandated wage standards could increase operational costs, potentially discouraging businesses from applying for state assistance or even leading to job losses if companies cut positions to maintain profitability. The debate is thus framed around balancing fair labor standards with economic growth and business viability.

Contention

Notable points of contention include the potential impact of the bill on business investment decisions and the administrative burden it places on companies to maintain compliance with wage standards. Opponents argue that the financial penalties for non-compliance may be too severe and create disincentives for businesses to engage with state programs. While proponents emphasize the importance of ensuring that state funds lead to fair wages and robust labor practices, critics warn that overly stringent requirements might undermine the intent of economic development initiatives.