OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-6537
AN ACT CONCERNING EXPANSION OF PAID SICK DAYS AND
DOMESTIC WORKER COVERAGE.
Primary Analyst: CW 4/13/21
Contributing Analyst(s): CG, ES
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Social Services, Dept.;
Department of Developmental
Services
GF - Cost At least 4.2 -
8.4 million
At least 4.2 -
8.4 million
Labor Dept. GF - Cost 287,942 319,529
State Comptroller - Fringe
Benefits
1
GF - Cost 114,955 127,588
Social Services, Dept.;
Department of Developmental
Services
GF - Potential
Revenue Loss
See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which expands the state’s current paid sick leave law and
establishes a new paid sick leave requirement for leave specifically
related to COVID-19, results in: 1) a cost of at least $4.2 million and up
to $8.4 million in each of FY 22 and FY 23, 2) a cost to the Department
of Labor (DOL) of $402,897 in FY 22 and $447,117 in FY 23, and 3) a
potential loss of federal revenue.
Expanding those covered under the paid sick leave law, as well as
expanding the covered leave itself, results in an additional cost to the
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-06537-R000435-FN.DOCX Page 2 of 2
DOL to administer.
2
Specifically, the DOL would need two additional
Wage Enforcement Agents and one Staff Attorney for a total cost of
$393,297 in FY 22 and $436,517 in FY 23, including salaries and
benefits. There are also associated overhead costs estimated at $9,600
for FY 22 and $10,600 for FY 23 for computers, office supplies, etc.
The bill also results in a cost to the Departments of Social Services
(DSS) and Developmental Services (DDS) associated with paid sick
leave for personal care attendants (PCAs). Cost components include
(1) payment to PCAs for sick leave, (2) payment to PCAs to provide
necessary services to Medicaid consumers while another PCA is taking
sick leave, and (3) enhanced contract costs for the PCA Workforce
Council to administer paid sick leave benefits.
There are approximately 13,000 active PCAs supporting DSS and
DDS Medicaid consumers paid a rate of approximately $16.25 per
hour. Assuming between 50% to 100% of active PCA's use at least 40
hours of paid sick leave per year, it will increase state costs by
approximately $4.2 million to $8.4 million, annually.
The bill also requires the PCA Workforce Council to act on behalf of
consumer employers of PCAs for purposes of the bill. This is
anticipated to increase state contract costs to support the
administration of paid sick leave benefits through fiscal intermediaries.
Additionally, since most DSS and DDS consumers with funding for
PCAs are enrolled in a Home and Community-Based Medicaid waiver,
the bill may also result in a potential federal revenue loss to the extent
the bill's provisions conflict with Medicaid waiver requirements.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to inflation.
2
The current paid sick leave law covers employers with over 50 employees
(excluding manufacturers and some non-profits) and only applies to 69 job
classifications. The bill expands coverage to all private-sector employers, which
includes an estimated 110,000 employers and 1.6 million workers.