House Bill No. 7501
July 22 Special Session, Public Act No. 19-1
AN ACT CONCERNING TH E WORKFORCE TRAINING NEEDS IN
THE STATE AND REVISI ONS TO AND REGULATIO N OF
GRATUITIES PERMITTED OR APPLIED AS PART OF THE MINIMUM
FAIR WAGE.
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 Section 31-11hh of the general statutes is repealed and the
following is substituted in lieu thereof (Effective May 1, 2020):
As used in this section and sections 31-11ii and 31-11jj, as amended
by this act:
(1) "Administrative costs" means the costs paid or incurred by the
administrator, including, but not limited to, peer review costs,
professional fees, allocated staff costs and other out-of-pocket costs
attributable to the administration and operation of the Workforce
Training Authority Fund;
(2) "Administrator" means the [Department of] Labor Commissioner;
(3) "Board" means the Workforce Training Authority established
pursuant to section 31-11ii, as amended by this act; and
(4) "Eligible recipient" means a [business] public or private entity [,
including, but not limited to, those businesses in the bioscience, House Bill No. 7501
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insurance, financial services, advanced manufacturing, digital media,
green technology and tourism industry sectors] seeking to develop a
workforce training program, either to grow an existing business or, in
the case of a public entity, as part of partnership with business entities
that have made a commitment to hire successful trainees from the
workforce training program funded by the authority created by section
31-11ii, as amended by this act.
Sec. 2. Section 31-11ii of the general statutes is repealed and the
following is substituted in lieu thereof (Effective May 1, 2020):
(a) There is established a Workforce Training Authority [that] within
the Labor Department whose purpose is to oversee the grant program
described in section 31-11jj, as amended by this act. The Workforce
Training Authority shall be composed of a board that:
(1) Until April 30, 2020, shall consist of the following members: [(1)]
(A) Four appointed by the Governor; [(2)] (B) one appointed by the
president pro tempore of the Senate; [(3)] (C) one appointed by the
Senate Republican president pro tempore; [(4)] (D) one appointed by the
speaker of the House of Representatives; [(5)] (E) one appointed by the
majority leader of the Senate; [(6)] (F) one appointed by the majority
leader of the House of Representatives; [(7)] (G) one appointed by the
minority leader of the Senate; [(8)] (H) one appointed by the minority
leader of the House of Representatives; [(9)] (I) the Labor Commissioner,
or the commissioner's designee, who shall serve as the chairperson of
the board; [(10)] (J) the Commissioner of [the Department of] Economic
and Community Development, or the commissioner's designee; [(11)]
(K) the president of the Connecticut State Colleges and Universities, or
the president's designee; [(12)] (L) the president of The University of
Connecticut, or the president's designee; and [(13)] (M) the
Commissioner of Correction, or the commissioner's designee. [Each
legislatively appointed member shall have skill, knowledge or
experience in industries and sciences related to insurance, financial House Bill No. 7501
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services, bioscience, advance manufacturing, digital media, green
technology, and tourism. All initial appointments to the board pursuant
to this subsection shall be made not later than October 1, 2017.
Appointed members shall each serve a term that is coterminous with the
respective appointing authority. Each member shall hold office until a
successor is appointed. Any vacancy occurring on the board, other than
by expiration of term, shall be filled in the same manner as the original
appointment for the balance of the unexpired term.] The term of any
member appointed under this subdivision shall terminate on April 30,
2020;
(2) On and after May 1, 2020, shall consist of the following members:
(A) Four appointed by the Governor, one of whom is a representative of
a community college, one of whom is a representative of a state
university, one of whom is a representative of The University of
Connecticut and one of whom is a representative of the independent
colleges; (B) two appointed by the president pro tempore of the Senate,
one of whom is a formerly incarcerated individual or someone who
helps formerly incarcerated individuals find employment and one of
whom is a representative of the Connecticut AFL-CIO; (C) two
appointed by the majority leader of the Senate, one of whom is a
representative of a workforce investment board and one of whom is a
representative of the Connecticut State Building and Construction
Trades Council; (D) two appointed by the speaker of the House of
Representatives, one of whom is a representative of The University of
Connecticut Health Center and one of whom is a representative from a
Connecticut affiliate of the National Urban League or the National
Association for the Advancement of Colored People; (E) two appointed
by the majority leader of the House of Representatives, one of whom is
a representative of the Connecticut Center for Advanced Technology
and one of whom is a representative of a Connecticut chamber of the
United States Hispanic Chamber of Commerce; (F) two appointed by
the minority leader of the Senate, one of whom has skill, knowledge or House Bill No. 7501
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expertise in the workforce needs of the financial services industry and
one of whom is a representative from the Connecticut Business and
Industry Association Manufacturers Advisory Council; (G) two
appointed by the minority leader of the House of Representatives, one
of whom is a representative from the Connecticut Association of Public
School Superintendents and one of whom has skill, knowledge and
expertise in the workforce needs of the digital media industry; (H) the
Labor Commissioner, or the commissioner's designee, who shall serve
as chairperson of the board; (I) the Commissioner of Economic and
Community Development, or the commissioner's designee; (J) the
Commissioner of Correction, or the commissioner's designee; (K) the
superintendent of the Technical Education and Career System, or the
superintendent's designee; and (L) the Commissioner of Agriculture, or
the commissioner's designee.
(b) All initial appointments to the board pursuant to subdivision (2)
of subsection (a) of this section shall be made not later than July 1, 2020.
Appointed members shall each serve a term that is coterminous with the
respective appointing authority. Each member shall hold office until a
successor is appointed. Any vacancy occurring on the board, other than
by expiration of term, shall be filled in the same manner as the original
appointment for the balance of the unexpired term.
[(b)] (c) The chairperson shall call the first meeting of the board
appointed under subdivision (2) of subsection (a) of this section not later
than [December 1, 2017] July 1, 2020. The board shall meet at such times
as the chairperson deems necessary.
[(c)] (d) No member of the board shall receive compensation for such
member's services.
[(d)] (e) A majority of the members of said board shall constitute a
quorum for the transaction of any business or the exercise of any power
of the board. The board may act by a majority of the members present House Bill No. 7501
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at any meeting at which a quorum is in attendance for the transaction of
any business or the exercise of any power of the board, except as
otherwise provided in this section.
[(e)] (f) Notwithstanding any provision of the general statutes, it shall
not constitute a conflict of interest for a trustee, director, partner, officer,
manager, shareholder, proprietor, counsel, public official acting in his
or her official capacity or employee of an eligible recipient, or any
individual with a financial interest in an eligible recipient, to serve as a
member of the board, provided such trustee, director, partner, officer,
manager, shareholder, proprietor, counsel, employee or individual shall
abstain from deliberation, action or vote by the board concerning any
matter relating to such eligible recipient, except such public official
acting in his or her official capacity shall be permitted to engage in such
deliberation.
[(f)] (g) The board may develop industry-specific advisory councils
to provide guidance on job market trends and develop connections with
the business community.
Sec. 3. Section 31-11jj of the general statutes is repealed and the
following is substituted in lieu thereof (Effective May 1, 2020):
(a) There is established the Workforce Training Authority Fund,
which shall be an account [in the Department of] within the Labor
Department. The following moneys shall be deposited in the fund: (1)
Any moneys received as part of a memorandum of understanding with
the Workforce Training Authority; (2) all private contributions, gifts,
grants, donations, bequests or devises received by the fund; and (3) to
the extent not otherwise prohibited by state or federal law, any local,
state or federal funds received by the fund.
(b) The Workforce Training Authority Fund shall be used by the
administrator: (1) To provide training assistance to eligible recipients as House Bill No. 7501
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may be approved by the Workforce Training Authority pursuant to
subsection (e) of this section, and (2) to pay or reimburse the
administrator for administrative costs pursuant to subsection [(c)] (h) of
this section. Such training assistance shall be awarded for the purpose
of: Developing and implementing training programs for the recruitment
of businesses to the state and the training or retraining of persons in the
state to achieve the workforce goals established by the Connecticut
Employment and Training Commission and the relevant sections of the
strategic master plan for higher education developed pursuant to
section 10a-11b. Training assistance shall target job growth in the areas
of construction, health care, early childhood education, insurance,
financial services, bioscience, advance manufacturing, digital media,
green technology, and tourism.
(c) All expenditures from the Workforce Training Authority Fund,
except for administrative costs reimbursed to the administrator
pursuant to subsection (h) of this section, shall be approved by the
board, provided the board may delegate to staff of the administrator the
approval of transactions not greater than one hundred thousand dollars.
Any such approval by the board shall be (1) specific to an individual
expenditure to be made; (2) for budgeted expenditures with such
variations as the board may authorize at the time of such budget
approval; or (3) for training assistance programs to be administered by
staff of the administrator, subject to limits, eligibility requirements and
other conditions established by the Workforce Training Authority at the
time of such program approval.
(d) The administrator shall provide any necessary staff, office space,
office systems and administrative support for the operation of the
Workforce Training Authority Fund in accordance with this section. In
acting as administrator of the fund, the Labor [Department]
Commissioner shall have and may exercise all of the powers set forth in
the general statutes, provided expenditures from the fund shall be House Bill No. 7501
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approved by the Workforce Training Authority pursuant to subsection
(c) of this section.
(e) The Workforce Training Authority shall establish an application
and approval process with guidelines and terms for the development
and implementation of training programs and training assistance
awarded by the administrator from the Workforce Training Authority
Fund to any eligible recipient. Such guidelines and terms shall include:
(1) A requirement that any applicant for training assistance operate in
the state or propose to relocate operations to the state, in whole or in
part, as a condition of such training assistance; (2) eligibility
requirements for training, including a requirement for applicants to
obtain [matching] funds or in-kind services from nonstate sources; (3) a
process for preliminary review of applications for strength and
eligibility by the administrator before such applications are presented to
the board for consideration; (4) return on investment objectives,
including, but not limited to, job growth and leveraged investment
opportunities; (5) a requirement that any [business] entity that receives
assistance [must] first consider applicants who have completed the
universal intake form; and (6) such other guidelines and terms as the
board determines to be necessary and appropriate in furtherance of the
objectives of this section. In developing such guidelines, the board shall
include considerations for the size of such [businesses] entities and the
number of workers employed by such [businesses] entities.
Additionally, the board shall give consideration to developing training
programs and creating career pathways for women, minorities and soon
to be released and formerly incarcerated individuals.
(f) Training assistance awarded to eligible recipients from the
Workforce Training Authority Fund [to eligible recipients] shall be used
for costs related to facilities, necessary furniture, fixtures and
equipment, development of programs, implementation of training
programs, materials and supplies, compensation, apprenticeship and House Bill No. 7501
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such other costs that the Workforce Training Authority [Board]
determines [pursuant to subsection (e) of this section] to be eligible for
training assistance within the purposes of this section pursuant to
subsection (e) of this section.
(g) On July 1, 2018, and prior to [each] the commencement of the next
fiscal year thereafter, the administrator shall prepare a plan of
operations and an operating and capital budget for the Workforce
Training Authority Fund, provided not later than ninety days prior to
the start of each fiscal year, the administrator shall submit such plan and
budget to the board of the Workforce Training Authority [Board] for its
review and approval.
(h) Administrative costs shall be paid or reimbursed to the
administrator from the Workforce Training Authority Fund, provided
the total of such administrative costs in any fiscal year shall not exceed
five per cent of the total amount of the allotted funding for such fiscal
year, as determined in the operating budget prepared pursuant to
subsection (g) of this section. Nothing in this section shall be [deemed]
construed to require the administrator to risk or expend the funds of the
Labor Department in connection with the administration of the
Workforce Training Authority Fund.
(i) On January 1, 2019, and annually thereafter, the administrator
shall provide a report of the [activities] expenditures of the Workforce
Training Authority Fund to the Workforce Training Authority for the
board's review and approval. Upon such approval, the board shall
provide such report, in accordance with the provisions of section 11-4a,
to the joint standing committees of the General Assembly having
cognizance of matters relating to labor, commerce and employment
advancement. Such report shall contain available information on the
status and progress of the operations of the programs funded by and
[funding] resources of the Workforce Training Authority Fund and the
types, amounts and recipients of financial assistance awarded. House Bill No. 7501
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(j) The administrator shall consult with the office of apprenticeship
training, the Connecticut Employment and Training Commission, the
Planning Commission on Higher Education and the administrator of the
Connecticut Manufacturing Innovation Fund to ensure coordination
and compatibility of the development and implementation of training
programs awarded by the Workforce Training Authority. [Fund.]
Sec. 4. (Effective from passage) (a) Not later than May 1, 2020, the Labor
Department, in collaboration with workforce development boards
within the state, shall conduct a study of programs offered to
individuals seeking employment within the state. The topics of such
study shall include, but not be limited to:
(1) The location, ownership and management of workforce
development board offices within the state;
(2) The number of employees dedicated to assisting individuals
seeking employment in each American Job Center office;
(3) The number of individuals seeking employment who are served
through each American Job Center office and by which program on an
annual basis;
(4) The number of employers, classified by industry, that utilize
workforce development boards throughout the state;
(5) The number of individuals who successfully find employment
through the American Job Centers and the nature of that employment,
classified by industry;
(6) The number of individuals who successfully found employment,
then lost that employment, who re-enrolled in an American Job Center
program;
(7) The type of training programs; House Bill No. 7501
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(8) Whether activities offered by individual workforce development
boards are planned in conjunction with the department to maximize
efficiency and avoid duplication of resources;
(9) The funding sources for each workforce development board and
any in-kind contributions offered by the state including, but not limited
to, office space, utilities and equipment;
(10) Whether an individual seeking employment can simultaneously
participate in a state-operated employment program through the
department and a workforce development board program;
(11) The methods by which the department and workforce
development boards coordinate employment programs in each region
of the state; and
(12) The methods by which workforce development boards report to
the department and whether the resources currently allocated to the
workforce development boards by the department are adequate for the
operation of the programs offered by the workforce development
boards.
(b) Not later than January 1, 2021, the department shall submit, in
accordance with the provisions of section 11-4a of the general statutes,
a report to the joint standing committee of the General Assembly having
cognizance of matters relating to labor detailing the findings of the
study conducted pursuant to subsection (a) of this section.
Sec. 5. (NEW) (Effective from passage) Not later than April 1, 2020, the
Labor Commissioner shall post on the eRegulations System a notice of
intent to adopt regulations, in accordance with the provisions of chapter
54 of the general statutes, concerning employees who perform both
service and nonservice duties and allowances for gratuities permitted or
applied as part of the minimum fair wage pursuant to section 31-60 of
the general statutes. The Labor Commissioner shall consult with House Bill No. 7501
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representatives of the restaurant industry, restaurant employees, service
employees and other interested stakeholders prior to posting such
notice. Such notice shall also provide for the repeal of section 31-62-E4
of the regulations of Connecticut state agencies upon the effective date
of regulations adopted pursuant to this section. Regulations adopted
pursuant to this section shall be: (1) In accordance with the Fair Labor
Standards Act, 29 USC 203(m)(2) and 29 CFR 531.56(e), as interpreted
by Section 30d00(e) of the federal Department of Labor's Field
Operations Handbook, prior to November 8, 2018, which was
previously referred to as the "80/20 rule", and (2) effective when posted
to the eRegulations System web site by the Secretary of the State.
Sec. 6. Subsection (a) of section 31-68 of the general statutes is
repealed and the following is substituted in lieu thereof (Effective from
passage):
(a) (1) If any employee is paid by his or her employer less than the
minimum fair wage or overtime wage to which he or she is entitled
under sections 31-58, 31-59 and 31-60 or by virtue of a minimum fair
wage order he or she shall recover, in a civil action, [(1)] (A) twice the
full amount of such minimum wage or overtime wage less any amount
actually paid to him or her by the employer, with costs and such
reasonable attorney's fees as may be allowed by the court, or [(2)] (B) if
the employer establishes that the employer had a good faith belief that
the underpayment of such wages was in compliance with the law, the
full amount of such minimum wage or overtime wage less any amount
actually paid to him or her by the employer, with costs and such
reasonable attorney's fees as may be allowed by the court.
(2) Notwithstanding the provisions of subdivision (1) of this
subsection, if any employee is paid by his or her employer less than the
minimum fair wage or overtime wage to which he or she is entitled
under section 31-62-E4 of the regulations of Connecticut state agencies,
such employee shall recover, in a civil action, (A) twice the full amount House Bill No. 7501
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of such minimum wage or overtime wage less any amount actually paid
to such employee by the employer, with costs and such reasonable
attorney's fees as may be allowed by the court, or (B) if the employer
establishes that the employer had a good faith belief that the
underpayment of such wages was in compliance with the law, the full
amount of such minimum wage or overtime wage less any amount
actually paid to such employee by the employer, with costs as may be
allowed by the court. A good faith belief includes, but is not limited to,
reasonable reliance on written guidance from the Labor Department.
(3) Notwithstanding the provisions of section 52-105, no person may
be authorized by a court to sue for the benefit of other alleged similarly
situated persons in a case brought for violations of section 31-62-E4 of
the regulations of Connecticut state agencies, unless such person, in
addition to satisfying any judicial rules of practice governing class
action certifications, demonstrates to the court, under the appropriate
burden of proof, that the defendant is liable to all individual proposed
class members because all such members (A) performed nonservice
duties while employed by the defendant, for more than a de minimis
amount of time, that were not incidental to service duties, and (B) were
not properly compensated by the defendant for some portion of their
nonservice duties in accordance with section 31-62-E4 of the regulations
of Connecticut state agencies.
(4) Any agreement between an employee and his or her employer to
work for less than such minimum fair wage or overtime wage shall be
no defense to such action as described in this section. The commissioner
may collect the full amount of unpaid minimum fair wages or unpaid
overtime wages to which an employee is entitled under said sections or
order, as well as interest calculated in accordance with the provisions of
section 31-265 from the date the wages should have been received, had
they been paid in a timely manner. In addition, the commissioner may
bring any legal action necessary to recover twice the full amount of the House Bill No. 7501
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unpaid minimum fair wages or unpaid overtime wages to which the
employee is entitled under said sections or under an order, and the
employer shall be required to pay the costs and such reasonable
attorney's fees as may be allowed by the court. The commissioner shall
distribute any wages or interest collected pursuant to this section to the
employee or in accordance with the provisions of subsection (b) of this
section.
Sec. 7. (NEW) (Effective from passage) Not later than thirty days
following the date of adoption of regulations pursuant to section 5 of
this act, the Labor Commissioner shall begin conducting random wage
and hour audits of tipped workers in not less than seventy-five
restaurants in the state of Connecticut and prepare a report on
compliance by such restaurants with the regulations adopted pursuant
to section 5 of this act. Not later than one year following the date of
adoption of regulations pursuant to section 5 of this act, the Labor
Commissioner shall report, in accordance with the provisions of section
11-4a of the general statutes, on the random wage and hour audits
conducted pursuant to this section to the joint standing committee of the
General Assembly having cognizance of matters relating to labor.
Sec. 8. (Effective from passage) (a) For the fiscal year ending June 30,
2020, the sum of $120,717 dollars appropriated to the Labor Department
for the Workforce Training Authority in the biennial budget shall be
reserved for three wage and hour investigators of the three wage and
hour investigators.
(b) For the fiscal year ending June 30, 2020, the sum of $35,217 of the
$120,717 reserved under subsection (a) of this section shall be available
to reimburse the comptroller for associated fringe benefits costs.
Approved January 6, 2020