An Act Concerning Workers' Compensation Insurance And Excluding From An Employer's Trade Or Business Contracted Work That Is Specialized And Is Not Regularly And Routinely Undertaken By The Employer's Employees.
Impact
The proposed bill is anticipated to significantly impact state laws related to workers' compensation by narrowing the scope of employer liability. By defining and excluding specialized work from the employer's standard operational responsibilities, the bill may reduce the financial burden on employers when it comes to insurance premiums and compensation payouts related to worker injuries. Supporters of the bill argue that it encourages businesses to hire specialized contractors without fear of extensive liability, thereby potentially fostering a more flexible labor market.
Summary
House Bill 5943 aims to amend section 31-291 of the general statutes concerning workers' compensation insurance by specifically excluding certain types of contracted work from an employer's trade or business. The legislation dictates that if a principal employer hires a contractor for work that is specialized and not routinely performed by the employer's employees, the employer would not be liable under the workers' compensation statutes for injuries or wrongful death that may occur during the execution of such work. This marks a significant shift in liability responsibilities for employers when it comes to contracted labor.
Contention
Despite the potential benefits highlighted by supporters, the bill has raised concerns among labor advocates and workers' rights groups. Critics argue that the exclusion could lead to a reduction in protections for workers engaged in specialized contracted work, leaving them vulnerable to workplace injuries without access to workers' compensation benefits. They see the legislation as an attempt to undermine the scope of employee rights and protections, calling into question the balance between employer interests and the safety and security of workers.
An Act Concerning Insurance Market Conduct And Insurance Licensing, The Insurance Department's Technical Corrections And Other Revisions To The Insurance Statutes And Captive Insurance.