Connecticut Senate Bill SB00531

Connecticut 2018 Regular Session

• Introduced: 3/28/18
• Refer: 3/28/18

Caption

An Act Concerning The Assessment Of A Fee On Certain Employers.

Impact

The bill is expected to generate revenue for the General Fund, which can be utilized by the Labor Commissioner to administrate and enforce provisions related to workforce recruitment and training. Additionally, the fees collected from employers will be reported annually to legislative committees, ensuring transparency and accountability. This measure aims to both penalize employers for maintaining lower wage thresholds while providing funds for further workforce enhancements.

Summary

SB00531 proposes to implement a fee on certain employers in the state that employ a workforce of 500 or more individuals and pay hourly wages of $15 or less. Specifically, the bill states that beginning on March 31, 2019, employers who meet these criteria will be subject to an assessment based on the number of hours their low-wage employees worked within a given quarter. The motivation behind this legislation is to create a funding mechanism to support workforce development and enhance the state's labor market conditions.

Contention

While supporters of SB00531 argue that this measure will incentivize employers to raise wages, critics contend that it may lead to unintended consequences such as job losses or increased costs for consumers. There are concerns that imposing fees on employers, particularly those reliant on lower-wage labor, could burden businesses and stifle economic growth, particularly in the retail and service sectors where many employees earn at or near minimum wage. Further, the application of the bill to franchisees raises questions regarding equitable treatment and compliance burdens placed on small business owners.