Connecticut 2019 Regular Session

Connecticut House Bill HB07239 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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3	3	LCO No. 4898 1 of 6
4	4
5	5	General Assembly Raised Bill No. 7239
6	6	January Session, 2019
7	7	LCO No. 4898
8	8
9	9
10	10	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
11	11
12	12
13	13	Introduced by:
14	14	(LAB)
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19	19	AN ACT CONCERNING TH E UNEMPLOYMENT INSURAN CE FUND.
20	20	Be it enacted by the Senate and House of Representatives in General
21	21	Assembly convened:
22	22
23	23	Section 1. Subsection (b) of section 31-222 of the general statutes is 1
24	24	repealed and the following is substituted in lieu thereof (Effective 2
25	25	October 1, 2019): 3
26	26	(b) (1) "Total wages" means all remuneration for employment and 4
27	27	dismissal payments, including the cash value of all remuneration paid 5
28	28	in any medium other than cash except the cash value of any 6
29	29	remuneration paid for agricultural labor or domestic service in any 7
30	30	medium other than cash. 8
31	31	(2) "Taxable wages" means total wages except: 9
32	32	(A) That part of the remuneration (i) in excess of seven thousand 10
33	33	one hundred dollars paid by an employer to an individual during any 11
34	34	calendar year commencing on or after January 1, 1983, (ii) in excess of 12
35	35	nine thousand dollars paid by an employer to an individual during the 13
36	36	calendar year commencing on January 1, 1994, (iii) in excess of an 14 Raised Bill No. 7239
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38	38
39	39
40	40	LCO No. 4898 2 of 6
41	41
42	42	amount equal to the taxable wages for the prior year increased by one 15
43	43	thousand dollars so paid during any calendar year commencing on or 16
44	44	after January 1, 1995, but prior to January 1, 1999, [or] (iv) in excess of 17
45	45	fifteen thousand dollars for any calendar year commencing on or after 18
46	46	January 1, 1999. This subsection shall not apply to wages paid in whole 19
47	47	or in part from federal funds after January 1, 1976, to employees of 20
48	48	towns, cities and other political and governmental subdivisions and 21
49	49	shall not operate to reduce an individual's benefit rights. 22
50	50	Remuneration paid to an individual by an employer with respect to 23
51	51	employment in another state or states upon which contributions were 24
52	52	required of and paid by such employer under an unemployment 25
53	53	compensation law of such other state or states shall be included as a 26
54	54	part of remuneration equal to the maximum limitation herein referred 27
55	55	to, or (v) in excess of seventeen thousand five hundred dollars paid by 28
56	56	an employer to an individual during any calendar year commencing 29
57	57	on or after January 1, 2020, except that on January 1, 2021, and not later 30
58	58	than each January first thereafter, an adjustment to said amount shall 31
59	59	be made that is equal to the percentage increase between the last- 32
60	60	completed calendar year and the preceding calendar year in the 33
61	61	consumer price index for urban wage earners and clerical workers in 34
62	62	the northeast urban area of New York-Northern New Jersey-Long 35
63	63	Island, NY-NJ-CT-PA, with no seasonal adjustment, as calculated by 36
64	64	the United States Department of Labor's Bureau of Labor Statistics; 37
65	65	(B) Dismissal payments which the employer who is not subject to 38
66	66	the Federal Unemployment Tax Act is not legally required to make; 39
67	67	(C) Payments which the employer is not legally required to make to 40
68	68	employees on leave of absence for military training; 41
69	69	(D) The payment by an employer, without deduction from the 42
70	70	remuneration of the employee, of the tax imposed upon an employee 43
71	71	under Section 3101 of the Federal Internal Revenue Code with respect 44
72	72	to remuneration paid to the employee for domestic service in a private 45
73	73	home of the employer or for agricultural labor; 46 Raised Bill No. 7239
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76	76
77	77	LCO No. 4898 3 of 6
78	78
79	79	(E) The amount of any payment excluded from "wages", as defined 47
80	80	in Section 3306(b) of the Federal Unemployment Tax Act, that is made 48
81	81	to, or on behalf of, an employee under a plan or system established by 49
82	82	an employer which makes provision for his employees generally or for 50
83	83	a class or classes of his employees, including any amount paid by an 51
84	84	employer for insurance or annuities, or into a fund, to provide for any 52
85	85	such payment, on account of (i) retirement, or (ii) sickness or accident 53
86	86	disability, or (iii) medical and hospitalization expenses in connection 54
87	87	with sickness or accident disability, or (iv) death. Whenever tips or 55
88	88	gratuities are paid directly to an employee by a customer of an 56
89	89	employer, the amount thereof which is accounted for by the employee 57
90	90	to the employer shall be considered wages for the purposes of this 58
91	91	chapter; 59
92	92	(F) If an employer has acquired all or substantially all the assets, 60
93	93	organization, trade or business of another employer liable for 61
94	94	contributions under this chapter and has assumed liability for unpaid 62
95	95	contributions, if any, due from such other employer, remuneration 63
96	96	paid by both employers shall be deemed paid by a single employer for 64
97	97	the purposes of this chapter; 65
98	98	(G) Payment to an employee by a stock corporation, partnership, 66
99	99	association or other business entity in which fifty per cent or more of 67
100	100	the proprietary interest is owned by such employee or his son, 68
101	101	daughter, spouse, father or mother or any combination of such 69
102	102	persons, unless the tax imposed by the Federal Unemployment Tax 70
103	103	Act is payable with respect to such payment; 71
104	104	(H) Any remuneration paid by any town, city or other political 72
105	105	subdivision to an individual for service performed in lieu of payment 73
106	106	of delinquent taxes. 74
107	107	(3) Notwithstanding any other provisions of this subsection, wages 75
108	108	shall include all remuneration for services with respect to which a tax 76
109	109	is required to be paid under any federal law imposing a tax against 77
110	110	which credit may be taken for contributions required to be paid into a 78 Raised Bill No. 7239
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112	112
113	113
114	114	LCO No. 4898 4 of 6
115	115
116	116	state unemployment fund or which as a condition for full tax credit 79
117	117	against the tax imposed by the Federal Unemployment Tax Act are 80
118	118	required to be included under this chapter. 81
119	119	Sec. 2. Section 31-231a of the general statutes is repealed and the 82
120	120	following is substituted in lieu thereof (Effective October 1, 2019): 83
121	121	(a) For a construction worker identified pursuant to regulations 84
122	122	adopted in accordance with subsection (c) of this section, the total 85
123	123	unemployment benefit rate for the individual's benefit year 86
124	124	commencing (1) on or after April 1, 1996, shall be an amount equal to 87
125	125	one twenty-sixth, rounded to the next lower dollar, of his total wages 88
126	126	paid during that quarter of his current benefit year's base period in 89
127	127	which wages were the highest but not less than fifteen dollars nor 90
128	128	more than the maximum benefit rate as provided in subsection (b) of 91
129	129	this section, and (2) on or after the first Sunday in October, 2019, shall 92
130	130	be an amount equal to one twenty-sixth, rounded to the next lower 93
131	131	dollar, of his total wages paid during that quarter of his current benefit 94
132	132	year's base period in which wages were the highest but not less than 95
133	133	forty dollars nor more than the maximum benefit rate as provided in 96
134	134	subsection (b) of this section. 97
135	135	(b) For an individual not included in subsection (a) of this section, 98
136	136	the individual's total unemployment benefit rate for his benefit year 99
137	137	commencing after September 30, 1967, shall be an amount equal to one 100
138	138	twenty-sixth, rounded to the next lower dollar, of the average of his 101
139	139	total wages, as defined in subdivision (1) of subsection (b) of section 102
140	140	31-222, as amended by this act, paid during the two quarters of his 103
141	141	current benefit year's base period in which such wages were highest 104
142	142	but not less than (1) fifteen dollars nor more than one hundred fifty-six 105
143	143	dollars in any benefit year commencing on or after the first Sunday in 106
144	144	July, 1982, nor more than [(1)] (A) sixty per cent rounded to the next 107
145	145	lower dollar of the average wage of production and related workers in 108
146	146	the state in any benefit year commencing on or after the first Sunday in 109
147	147	October, 1983, and [(2)] (B) fifty per cent rounded to the next lower 110
148	148	dollar of the average wage of all workers in the state in any benefit 111 Raised Bill No. 7239
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150	150
151	151
152	152	LCO No. 4898 5 of 6
153	153
154	154	year commencing on or after the first Sunday in October, 2018, and (2) 112
155	155	forty dollars nor more than fifty per cent rounded to the next lower 113
156	156	dollar of the average wage of all workers in the state in any benefit 114
157	157	year commencing on or after the first Sunday in October, 2019, and 115
158	158	provided the maximum benefit rate in any benefit year commencing 116
159	159	on or after the first Sunday in October, 1988, shall not increase more 117
160	160	than eighteen dollars in any benefit year, such increase to be effective 118
161	161	as of the first Sunday in October of such year, and provided further the 119
162	162	maximum benefit rate shall not increase in any benefit year 120
163	163	commencing on or after the first Sunday in October, 2019, and before 121
164	164	the first Sunday in October, 2022. The average wage of all workers in 122
165	165	the state shall be determined by (A) the administrator, on or before 123
166	166	August fifteenth annually, as of the year ended the previous March 124
167	167	thirty-first to be effective during the benefit year commencing on or 125
168	168	after the first Sunday of the following October, and (B) the Connecticut 126
169	169	Quarterly Census of Employment and Wages or by such other method, 127
170	170	as determined by the administrator, that accurately reflects the average 128
171	171	wage of all workers in the state. 129
172	172	(c) The administrator shall adopt regulations pursuant to the 130
173	173	provisions of chapter 54 to implement the provisions of this section. 131
174	174	Such regulations shall specify the National Council on Compensation 132
175	175	Insurance employee classification codes which identify construction 133
176	176	workers covered by subsection (a) of this section and specify the 134
177	177	manner and format in which employers shall report the identification 135
178	178	of such workers to the administrator. 136
179	179	Sec. 3. Subdivision (4) of subsection (a) of section 31-236 of the 137
180	180	general statutes is repealed and the following is substituted in lieu 138
181	181	thereof (Effective October 1, 2019): 139
182	182	(4) During any week with respect to which the individual has 140
183	183	received or is about to receive remuneration in the form of (A) wages 141
184	184	in lieu of notice or dismissal payments, including severance or 142
185	185	separation payment by an employer to an employee beyond the 143
186	186	employee's wages upon termination of the employment relationship, 144 Raised Bill No. 7239
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189	189
190	190	LCO No. 4898 6 of 6
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192	192	[unless the employee was required to waive or forfeit a right or claim 145
193	193	independently established by statute or common law, against the 146
194	194	employer as a condition of receiving the payment,] or any payment by 147
195	195	way of compensation for loss of wages, or any other state or federal 148
196	196	unemployment benefits, except mustering out pay, terminal leave pay 149
197	197	or any allowance or compensation granted by the United States under 150
198	198	an Act of Congress to an ex-serviceperson in recognition of the ex-151
199	199	serviceperson's former military service, or any service-connected pay 152
200	200	or compensation earned by an ex-serviceperson paid before or after 153
201	201	separation or discharge from active military service, or (B) 154
202	202	compensation for temporary disability under any workers' 155
203	203	compensation law; 156
204	204	This act shall take effect as follows and shall amend the following
205	205	sections:
206	206
207	207	Section 1 October 1, 2019 31-222(b)
208	208	Sec. 2 October 1, 2019 31-231a
209	209	Sec. 3 October 1, 2019 31-236(a)(4)
210	210
211	211	Statement of Purpose:
212	212	To implement the recommendations of the Employment Security
213	213	Advisory Board regarding unemployment insurance.
214	214	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
215	215	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
216	216	not underlined.]
217	217