OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6536
AN ACT REQUIRING EMPLOYERS TO PROVIDE EMPLOYEES
WORKING FROM HOME CERTAIN EQUIPMENT OR
REIMBURSEMENT FOR CERTAIN NECESSARY EXPENDITURES.
Primary Analyst: CW 4/11/21
Contributing Analyst(s): DC, DD, AN
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Labor Dept. GF - Cost 230,230 254,857
State Comptroller - Fringe
Benefits
1
GF - Cost 92,855 102,819
Labor Dept. GF - Potential
Revenue Gain
Minimal Minimal
All Various -
Potential Cost
Minimal Minimal
Note: GF=General Fund; Various=Various
Municipal Impact:
Municipalities Effect FY 22 $ FY 23 $
Various Municipalities Potential
Cost
Minimal Minimal
Explanation
The bill, which requires employers to reimburse employees for
certain costs directly related to services performed for the employer,
results in: 1) a General Fund cost of $323,085 in FY 22 and $357,676 in
FY 23, 2) a potential minimal revenue gain to the extent there are
violations found and civil penalties levied, and 3) a potential minimal
cost to the state and municipalities as employers.
1
The fringe benefit costs for most state employees are budgeted centrally in accounts
administered by the Comptroller. The estimated active employee fringe benefit cost
associated with most personnel changes is 41.3% of payroll in FY 22 and FY 23. 2021HB-06536-R000390-FN.DOCX Page 2 of 2
The Department of Labor would incur salary and fringe benefit
costs of $317,685 in FY 22 and $351,776 in FY 23 for two Wage
Enforcement Agents and one part-time Staff Attorney to enforce the
bill's provisions, which apply to approximately 110,000 employers and
1.6 million workers in the state. There are also associated overhead
costs estimated at $5,400 for FY 22 and $5,900 for FY 23 for computers,
office supplies, etc.
The bill also results in a potential cost to the state and municipalities
as employers to reimburse employees for costs related to working from
home. Any cost would depend on the types of supplies and
equipment employees request reimbursement for. A state agency or
municipality that currently reimburses workers for work-from-home
expenses would only incur a cost to the extent that the bill expands the
type of expenses such state agency or municipality must
reimburse. These potential expenses are anticipated to be minimal.
The Out Years
The annualized ongoing cost impacts identified above would
continue into the future subject to inflation; the ongoing revenue
impact would continue into the future subject to the number of
violations found.