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General Assembly Bill No. 7501
July 22 Special Session, 2019
LCO No. 11290
Referred to Committee on No Committee
Introduced by:
REP. ARESIMOWICZ, 30
th
Dist.
REP. RITTER M., 1
st
Dist.
SEN. LOONEY, 11
th
Dist.
SEN. DUFF, 25
th
Dist.
SEN. FASANO, 34
th
Dist.
REP. KLARIDES, 114
th
Dist.
AN ACT CONCERNING TH E WORKFORCE TRAINING NEEDS IN THE
STATE AND REVISIONS TO AND REGULATION OF GRATUITIES
PERMITTED OR APPLIED AS PART OF THE MINIMUM FAIR WAG E.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 31-11hh of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective May 1, 2020): 2
As used in this section and sections 31-11ii and 31-11jj, as amended 3
by this act: 4
(1) "Administrative costs" means the costs paid or incurred by the 5
administrator, including, but not limited to, peer review costs, 6
professional fees, allocated staff costs and other out-of-pocket costs 7
attributable to the administration and operation of the Workforce 8
Training Authority Fund; 9
(2) "Administrator" means the [Department of] Labor 10
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Commissioner; 11
(3) "Board" means the Workforce Training Authority established 12
pursuant to section 31-11ii, as amended by this act; and 13
(4) "Eligible recipient" means a [business] public or private entity [, 14
including, but not limited to, those businesses in the bioscience, 15
insurance, financial services, advanced manufacturing, digital media, 16
green technology and tourism industry sectors] seeking to develop a 17
workforce training program, either to grow an existing business or, in 18
the case of a public entity, as part of partnership with business entities 19
that have made a commitment to hire successful trainees from the 20
workforce training program funded by the authority created by section 21
31-11ii, as amended by this act. 22
Sec. 2. Section 31-11ii of the general statutes is repealed and the 23
following is substituted in lieu thereof (Effective May 1, 2020): 24
(a) There is established a Workforce Training Authority [that] 25
within the Labor Department whose purpose is to oversee the grant 26
program described in section 31-11jj, as amended by this act. The 27
Workforce Training Authority shall be composed of a board that: 28
(1) Until April 30, 2020, shall consist of the following members: [(1)] 29
(A) Four appointed by the Governor; [(2)] (B) one appointed by the 30
president pro tempore of the Senate; [(3)] (C) one appointed by the 31
Senate Republican president pro tempore; [(4)] (D) one appointed by 32
the speaker of the House of Representatives; [(5)] (E) one appointed by 33
the majority leader of the Senate; [(6)] (F) one appointed by the 34
majority leader of the House of Representatives; [(7)] (G) one 35
appointed by the minority leader of the Senate; [(8)] (H) one appointed 36
by the minority leader of the House of Representatives; [(9)] (I) the 37
Labor Commissioner, or the commissioner's designee, who shall serve 38
as the chairperson of the board; [(10)] (J) the Commissioner of [the 39
Department of] Economic and Community Development, or the 40
commissioner's designee; [(11)] (K) the president of the Connecticut 41
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State Colleges and Universities, or the president's designee; [(12)] (L) 42
the president of The University of Connecticut, or the president's 43
designee; and [(13)] (M) the Commissioner of Correction, or the 44
commissioner's designee. [Each legislatively appointed member shall 45
have skill, knowledge or experience in industries and sciences related 46
to insurance, financial services, bioscience, advance manufacturing, 47
digital media, green technology, and tourism. All initial appointments 48
to the board pursuant to this subsection shall be made not later than 49
October 1, 2017. Appointed members shall each serve a term that is 50
coterminous with the respective appointing authority. Each member 51
shall hold office until a successor is appointed. Any vacancy occurring 52
on the board, other than by expiration of term, shall be filled in the 53
same manner as the original appointment for the balance of the 54
unexpired term.] The term of any member appointed under this 55
subdivision shall terminate on April 30, 2020; 56
(2) On and after May 1, 2020, shall consist of the following members: 57
(A) Four appointed by the Governor, one of whom is a representative 58
of a community college, one of whom is a representative of a state 59
university, one of whom is a representative of The University of 60
Connecticut and one of whom is a representative of the independent 61
colleges; (B) two appointed by the president pro tempore of the Senate, 62
one of whom is a formerly incarcerated individual or someone who 63
helps formerly incarcerated individuals find employment and one of 64
whom is a representative of the Connecticut AFL-CIO; (C) two 65
appointed by the majority leader of the Senate, one of whom is a 66
representative of a workforce investment board and one of whom is a 67
representative of the Connecticut State Building and Construction 68
Trades Council; (D) two appointed by the speaker of the House of 69
Representatives, one of whom is a representative of The University of 70
Connecticut Health Center and one of whom is a representative from a 71
Connecticut affiliate of the National Urban League or the National 72
Association for the Advancement of Colored People; (E) two 73
appointed by the majority leader of the House of Representatives, one 74
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of whom is a representative of the Connecticut Center for Advanced 75
Technology and one of whom is a representative of a Connecticut 76
chamber of the United States Hispanic Chamber of Commerce; (F) two 77
appointed by the minority leader of the Senate, one of whom has skill, 78
knowledge or expertise in the workforce needs of the financial services 79
industry and one of whom is a representative from the Connecticut 80
Business and Industry Association Manufacturers Advisory Council; 81
(G) two appointed by the minority leader of the House of 82
Representatives, one of whom is a representative from the Connecticut 83
Association of Public School Superintendents and one of whom has 84
skill, knowledge and expertise in the workforce needs of the digital 85
media industry; (H) the Labor Commissioner, or the commissioner's 86
designee, who shall serve as chairperson of the board; (I) the 87
Commissioner of Economic and Community Development, or the 88
commissioner's designee; (J) the Commissioner of Correction, or the 89
commissioner's designee; (K) the superintendent of the Technical 90
Education and Career System, or the superintendent's designee; and 91
(L) the Commissioner of Agriculture, or the commissioner's designee. 92
(b) All initial appointments to the board pursuant to subdivision (2) 93
of subsection (a) of this section shall be made not later than July 1, 94
2020. Appointed members shall each serve a term that is coterminous 95
with the respective appointing authority. Each member shall hold 96
office until a successor is appointed. Any vacancy occurring on the 97
board, other than by expiration of term, shall be filled in the same 98
manner as the original appointment for the balance of the unexpired 99
term. 100
[(b)] (c) The chairperson shall call the first meeting of the board 101
appointed under subdivision (2) of subsection (a) of this section not 102
later than [December 1, 2017] July 1, 2020. The board shall meet at such 103
times as the chairperson deems necessary. 104
[(c)] (d) No member of the board shall receive compensation for 105
such member's services. 106
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[(d)] (e) A majority of the members of said board shall constitute a 107
quorum for the transaction of any business or the exercise of any 108
power of the board. The board may act by a majority of the members 109
present at any meeting at which a quorum is in attendance for the 110
transaction of any business or the exercise of any power of the board, 111
except as otherwise provided in this section. 112
[(e)] (f) Notwithstanding any provision of the general statutes, it 113
shall not constitute a conflict of interest for a trustee, director, partner, 114
officer, manager, shareholder, proprietor, counsel, public official acting 115
in his or her official capacity or employee of an eligible recipient, or 116
any individual with a financial interest in an eligible recipient, to serve 117
as a member of the board, provided such trustee, director, partner, 118
officer, manager, shareholder, proprietor, counsel, employee or 119
individual shall abstain from deliberation, action or vote by the board 120
concerning any matter relating to such eligible recipient, except such 121
public official acting in his or her official capacity shall be permitted to 122
engage in such deliberation. 123
[(f)] (g) The board may develop industry-specific advisory councils 124
to provide guidance on job market trends and develop connections 125
with the business community. 126
Sec. 3. Section 31-11jj of the general statutes is repealed and the 127
following is substituted in lieu thereof (Effective May 1, 2020): 128
(a) There is established the Workforce Training Authority Fund, 129
which shall be an account [in the Department of] within the Labor 130
Department. The following moneys shall be deposited in the fund: (1) 131
Any moneys received as part of a memorandum of understanding 132
with the Workforce Training Authority; (2) all private contributions, 133
gifts, grants, donations, bequests or devises received by the fund; and 134
(3) to the extent not otherwise prohibited by state or federal law, any 135
local, state or federal funds received by the fund. 136
(b) The Workforce Training Authority Fund shall be used by the 137
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administrator: (1) To provide training assistance to eligible recipients 138
as may be approved by the Workforce Training Authority pursuant to 139
subsection (e) of this section, and (2) to pay or reimburse the 140
administrator for administrative costs pursuant to subsection [(c)] (h) 141
of this section. Such training assistance shall be awarded for the 142
purpose of: Developing and implementing training programs for the 143
recruitment of businesses to the state and the training or retraining of 144
persons in the state to achieve the workforce goals established by the 145
Connecticut Employment and Training Commission and the relevant 146
sections of the strategic master plan for higher education developed 147
pursuant to section 10a-11b. Training assistance shall target job growth 148
in the areas of construction, health care, early childhood education, 149
insurance, financial services, bioscience, advance manufacturing, 150
digital media, green technology, and tourism. 151
(c) All expenditures from the Workforce Training Authority Fund, 152
except for administrative costs reimbursed to the administrator 153
pursuant to subsection (h) of this section, shall be approved by the 154
board, provided the board may delegate to staff of the administrator 155
the approval of transactions not greater than one hundred thousand 156
dollars. Any such approval by the board shall be (1) specific to an 157
individual expenditure to be made; (2) for budgeted expenditures with 158
such variations as the board may authorize at the time of such budget 159
approval; or (3) for training assistance programs to be administered by 160
staff of the administrator, subject to limits, eligibility requirements and 161
other conditions established by the Workforce Training Authority at 162
the time of such program approval. 163
(d) The administrator shall provide any necessary staff, office space, 164
office systems and administrative support for the operation of the 165
Workforce Training Authority Fund in accordance with this section. In 166
acting as administrator of the fund, the Labor [Department] 167
Commissioner shall have and may exercise all of the powers set forth 168
in the general statutes, provided expenditures from the fund shall be 169
approved by the Workforce Training Authority pursuant to subsection 170
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(c) of this section. 171
(e) The Workforce Training Authority shall establish an application 172
and approval process with guidelines and terms for the development 173
and implementation of training programs and training assistance 174
awarded by the administrator from the Workforce Training Authority 175
Fund to any eligible recipient. Such guidelines and terms shall include: 176
(1) A requirement that any applicant for training assistance operate in 177
the state or propose to relocate operations to the state, in whole or in 178
part, as a condition of such training assistance; (2) eligibility 179
requirements for training, including a requirement for applicants to 180
obtain [matching] funds or in-kind services from nonstate sources; (3) 181
a process for preliminary review of applications for strength and 182
eligibility by the administrator before such applications are presented 183
to the board for consideration; (4) return on investment objectives, 184
including, but not limited to, job growth and leveraged investment 185
opportunities; (5) a requirement that any [business] entity that receives 186
assistance [must] first consider applicants who have completed the 187
universal intake form; and (6) such other guidelines and terms as the 188
board determines to be necessary and appropriate in furtherance of the 189
objectives of this section. In developing such guidelines, the board 190
shall include considerations for the size of such [businesses] entities 191
and the number of workers employed by such [businesses] entities. 192
Additionally, the board shall give consideration to developing training 193
programs and creating career pathways for women, minorities and 194
soon to be released and formerly incarcerated individuals. 195
(f) Training assistance awarded to eligible recipients from the 196
Workforce Training Authority Fund [to eligible recipients] shall be 197
used for costs related to facilities, necessary furniture, fixtures and 198
equipment, development of programs, implementation of training 199
programs, materials and supplies, compensation, apprenticeship and 200
such other costs that the Workforce Training Authority [Board] 201
determines [pursuant to subsection (e) of this section] to be eligible for 202
training assistance within the purposes of this section pursuant to 203
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subsection (e) of this section. 204
(g) On July 1, 2018, and prior to [each] the commencement of the 205
next fiscal year thereafter, the administrator shall prepare a plan of 206
operations and an operating and capital budget for the Workforce 207
Training Authority Fund, provided not later than ninety days prior to 208
the start of each fiscal year, the administrator shall submit such plan 209
and budget to the board of the Workforce Training Authority [Board] 210
for its review and approval. 211
(h) Administrative costs shall be paid or reimbursed to the 212
administrator from the Workforce Training Authority Fund, provided 213
the total of such administrative costs in any fiscal year shall not exceed 214
five per cent of the total amount of the allotted funding for such fiscal 215
year, as determined in the operating budget prepared pursuant to 216
subsection (g) of this section. Nothing in this section shall be [deemed] 217
construed to require the administrator to risk or expend the funds of 218
the Labor Department in connection with the administration of the 219
Workforce Training Authority Fund. 220
(i) On January 1, 2019, and annually thereafter, the administrator 221
shall provide a report of the [activities] expenditures of the Workforce 222
Training Authority Fund to the Workforce Training Authority for the 223
board's review and approval. Upon such approval, the board shall 224
provide such report, in accordance with the provisions of section 11-4a, 225
to the joint standing committees of the General Assembly having 226
cognizance of matters relating to labor, commerce and employment 227
advancement. Such report shall contain available information on the 228
status and progress of the operations of the programs funded by and 229
[funding] resources of the Workforce Training Authority Fund and the 230
types, amounts and recipients of financial assistance awarded. 231
(j) The administrator shall consult with the office of apprenticeship 232
training, the Connecticut Employment and Training Commission, the 233
Planning Commission on Higher Education and the administrator of 234
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the Connecticut Manufacturing Innovation Fund to ensure 235
coordination and compatibility of the development and 236
implementation of training programs awarded by the Workforce 237
Training Authority. [Fund.] 238
Sec. 4. (Effective from passage) (a) Not later than May 1, 2020, the 239
Labor Department, in collaboration with workforce development 240
boards within the state, shall conduct a study of programs offered to 241
individuals seeking employment within the state. The topics of such 242
study shall include, but not be limited to: 243
(1) The location, ownership and management of workforce 244
development board offices within the state; 245
(2) The number of employees dedicated to assisting individuals 246
seeking employment in each American Job Center office; 247
(3) The number of individuals seeking employment who are served 248
through each American Job Center office and by which program on an 249
annual basis; 250
(4) The number of employers, classified by industry, that utilize 251
workforce development boards throughout the state; 252
(5) The number of individuals who successfully find employment 253
through the American Job Centers and the nature of that employment, 254
classified by industry; 255
(6) The number of individuals who successfully found employment, 256
then lost that employment, who re-enrolled in an American Job Center 257
program; 258
(7) The type of training programs; 259
(8) Whether activities offered by individual workforce development 260
boards are planned in conjunction with the department to maximize 261
efficiency and avoid duplication of resources; 262
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(9) The funding sources for each workforce development board and 263
any in-kind contributions offered by the state including, but not 264
limited to, office space, utilities and equipment; 265
(10) Whether an individual seeking employment can simultaneously 266
participate in a state-operated employment program through the 267
department and a workforce development board program; 268
(11) The methods by which the department and workforce 269
development boards coordinate employment programs in each region 270
of the state; and 271
(12) The methods by which workforce development boards report to 272
the department and whether the resources currently allocated to the 273
workforce development boards by the department are adequate for the 274
operation of the programs offered by the workforce development 275
boards. 276
(b) Not later than January 1, 2021, the department shall submit, in 277
accordance with the provisions of section 11-4a of the general statutes, 278
a report to the joint standing committee of the General Assembly 279
having cognizance of matters relating to labor detailing the findings of 280
the study conducted pursuant to subsection (a) of this section. 281
Sec. 5. (NEW) (Effective from passage) Not later than April 1, 2020, the 282
Labor Commissioner shall post on the eRegulations System a notice of 283
intent to adopt regulations, in accordance with the provisions of 284
chapter 54 of the general statutes, concerning employees who perform 285
both service and nonservice duties and allowances for gratuities 286
permitted or applied as part of the minimum fair wage pursuant to 287
section 31-60 of the general statutes. The Labor Commissioner shall 288
consult with representatives of the restaurant industry, restaurant 289
employees, service employees and other interested stakeholders prior 290
to posting such notice and shall consider any state and federal 291
guidance regarding such allowances. Such notice shall also provide for 292
the repeal of section 31-62-E4 of the regulations of Connecticut state 293
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agencies upon the effective date of regulations adopted pursuant to 294
this section. Regulations adopted pursuant to this section shall be 295
effective when posted to the eRegulations System web site by the 296
Secretary of the State. 297
Sec. 6. Subsection (a) of section 31-68 of the general statutes is 298
repealed and the following is substituted in lieu thereof (Effective from 299
passage): 300
(a) (1) If any employee is paid by his or her employer less than the 301
minimum fair wage or overtime wage to which he or she is entitled 302
under sections 31-58, 31-59 and 31-60 or by virtue of a minimum fair 303
wage order he or she shall recover, in a civil action, [(1)] (A) twice the 304
full amount of such minimum wage or overtime wage less any amount 305
actually paid to him or her by the employer, with costs and such 306
reasonable attorney's fees as may be allowed by the court, or [(2)] (B) if 307
the employer establishes that the employer had a good faith belief that 308
the underpayment of such wages was in compliance with the law, the 309
full amount of such minimum wage or overtime wage less any amount 310
actually paid to him or her by the employer, with costs and such 311
reasonable attorney's fees as may be allowed by the court. 312
(2) Notwithstanding the provisions of subdivision (1) of this 313
subsection, if any employee is paid by his or her employer less than the 314
minimum fair wage or overtime wage to which he or she is entitled 315
under section 31-62-E4 of the regulations of Connecticut state agencies, 316
such employee shall recover, in a civil action, (A) twice the full amount 317
of such minimum wage or overtime wage less any amount actually 318
paid to such employee by the employer, with costs and such 319
reasonable attorney's fees as may be allowed by the court, or (B) if the 320
employer establishes that the employer had a good faith belief that the 321
underpayment of such wages was in compliance with the law, the full 322
amount of such minimum wage or overtime wage less any amount 323
actually paid to such employee by the employer, with costs as may be 324
allowed by the court. A good faith belief includes, but is not limited to, 325
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reasonable reliance on written guidance from the Labor Department. 326
(3) Notwithstanding the provisions of section 52-105 of the general 327
statutes, no person may be authorized by a court to sue for the benefit 328
of other alleged similarly situated persons in a case brought for 329
violations of section 31-62-E4 of the regulations of Connecticut state 330
agencies, unless such person, in addition to satisfying any judicial 331
rules of practice governing class action certifications, demonstrates to 332
the court, under the appropriate burden of proof, that the defendant is 333
liable to all individual proposed class members because all such 334
members (A) performed nonservice duties while employed by the 335
defendant, for more than a de minimis amount of time, that were not 336
incidental to service duties, and (B) were not properly compensated by 337
the defendant for some portion of their nonservice duties in 338
accordance with section 31-62-E4 of the regulations of Connecticut 339
state agencies. 340
(4) Any agreement between an employee and his or her employer to 341
work for less than such minimum fair wage or overtime wage shall be 342
no defense to such action as described in this section. The 343
commissioner may collect the full amount of unpaid minimum fair 344
wages or unpaid overtime wages to which an employee is entitled 345
under said sections or order, as well as interest calculated in 346
accordance with the provisions of section 31-265 from the date the 347
wages should have been received, had they been paid in a timely 348
manner. In addition, the commissioner may bring any legal action 349
necessary to recover twice the full amount of the unpaid minimum fair 350
wages or unpaid overtime wages to which the employee is entitled 351
under said sections or under an order, and the employer shall be 352
required to pay the costs and such reasonable attorney's fees as may be 353
allowed by the court. The commissioner shall distribute any wages or 354
interest collected pursuant to this section to the employee or in 355
accordance with the provisions of subsection (b) of this section. 356
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This act shall take effect as follows and shall amend the following
sections:
Section 1 May 1, 2020 31-11hh
Sec. 2 May 1, 2020 31-11ii
Sec. 3 May 1, 2020 31-11jj
Sec. 4 from passage New section
Sec. 5 from passage New section
Sec. 6 from passage 31-68(a)