Connecticut Senate Bill SB00391

Connecticut 2016 Regular Session

• Introduced: 3/3/16
• Refer: 3/3/16
• Report Pass: 3/15/16
• Refer: 3/24/16
• Report Pass: 3/31/16
• Refer: 4/6/16
• Report Pass: 4/12/16
• Report Pass: 4/13/16

Caption

An Act Concerning The Recoupment Of State Costs Attributable To Low Wage Employers.

Impact

This bill significantly alters the financial landscape for large employers in Connecticut, encouraging them to raise wages to avoid the imposed fees. By requiring the Labor Commissioner to calculate and collect these fees from covered employers, the bill intends to enhance the state's general funds, directing those resources towards improving services for vulnerable populations, such as elderly and disabled persons, and supporting childcare initiatives for the children of low-wage workers.

Summary

SB00391, titled 'An Act Concerning The Recoupment Of State Costs Attributable To Low Wage Employers', introduces a new framework to assess a fee on large employers who consistently pay low wages. Specifically, the bill targets employers with five hundred or more employees who pay wages averaging below fifteen dollars per hour during a specific quarter. The fee aims to mitigate the state’s financial burden caused by low wage employment, which often leads to increased reliance on public assistance by affected workers.

Sentiment

The sentiment surrounding SB00391 appears to be mixed. Proponents argue that the measure provides a necessary mechanism to hold large employers accountable for their wage practices while also benefiting state-funded programs that support low-wage workers and their families. However, critics express concerns about the potential negative implications for businesses, fearing that it may lead to reduced hiring or additional operational costs. This divide illustrates broader discussions about the balance between supporting workers and encouraging business growth.

Contention

A notable point of contention within discussions of SB00391 relates to the assertion that the bill could discourage job creation among large employers who might be hesitant to expand their workforce or invest in expanding existing operations due to the financial burden of the fees. As the bill seeks to adjust the effectiveness of the state’s public assistance framework, it also raises significant questions about its long-term impact on employment within affected sectors.