Researcher: JM Page 1 4/13/22
OLR Bill Analysis
sHB 5356
AN ACT CONCERNING PANDEMIC PAY FOR ESSENTIAL
WORKERS.
SUMMARY
This bill establishes the Connecticut Essential Workers Pandemic Pay
program to be administered by the Office of the Comptroller (OTC) or a
third-party administrator under contract with OTC. The program must
provide $2,000 to each full-time essential worker (i.e., worked at least 30
hours a week) and up to $1,000 to each part-time essential worker,
within available funds on a first-come, first-served basis, pending
verification of eligibility, through June 30, 2024.
The bill establishes a non-lapsing program account along with
application and payment processes. It also:
1. allows an essential worker to request a reconsideration of a
denied application,
2. prohibits appeals on reconsideration decisions,
3. makes payments exempt from state income tax,
4. prohibits employer retaliation against employees for applying
for pandemic pay, and
5. requires a quarterly reports to the Labor Committee.
Lastly, the bill appropriates $750 million to OTC for FY 23 for the
account.
EFFECTIVE DATE: Upon passage
ESSENTIAL WORKER DEFINED
There are two ways under the bill to qualify as an “essential worker.” 2022HB-05356-R000458-BA.DOCX
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One way considers whether someone worked during a declared
emergency and with certain jobs and the other just considers the job
type.
Under the first way, the bill defines an “essential worker” as anyone
who:
1. worked during (a) the public health and civil preparedness
emergency the governor declared on March 10, 2020, or any
declaration extension, or (b) any new public health and civil
preparedness emergency the governor declares; and
2. the Centers for Disease Control (CDC) and Prevention’s
Advisory Committee on Immunization Practices recommended,
as of February 20, 2021, to receive a COVID-19 vaccination in
phase 1a, 1b, or 1c of the COVID-19 vaccination program. (These
include, among others, health care personnel, firefighters, police
officers, employees required to work in congregate settings or
with persons infected with COVID-19, personal care assistants,
food and agricultural workers, U.S. Postal Service workers,
manufacturing workers, grocery store workers, public transit
workers, education sector workers, and child care workers.)
Under the other way, the bill defines an “essential worker” as anyone:
1. included in the Cybersecurity and Infrastructure Security
Agency’s (CISA) Guidance on the Essential Critical
Infrastructure Workforce: Ensuring Community and National
Resilience in COVID-19 Response, issued on March 19, 2020, or
any subsequent version of it (names critical sectors of the U.S.
economy), or
2. covered by the Governor's Executive Order No. 7H, issued on
March 10, 2020 (this named the federal Department of Homeland
Security’s (DHS) essential workers in 16 broad critical sectors).
There is significant overlap between the CDC’s vaccination rollout
workforce and the CISA infrastructure workforce. The CDC document 2022HB-05356-R000458-BA.DOCX
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indicates it is based on the CISA guidance. Also, the DHS guidance cited
by Executive Order No. 7H comes from the same CISA document as
CISA is part of DHS.
Under the bill, those who qualify as essential workers are eligible
regardless of immigration status.
PROGRAM ADMINISTRATION
Under the bill, the program administrator must begin accepting
applications upon the bill’s passage. OTC must administer the program
or contract with a third party to act administer it.
The administrator may: (1) determine whether an essential worker
meets the eligibility requirements for compensation; (2) summon and
examine under oath relevant witnesses; (3) direct the production of, and
examine any books, records, letters, contracts, or other documents he or
she finds proper; and (4) take affidavits or depositions.
PROGRAM ACCOUNT
The bill establishes the “Connecticut essential worker pandemic pay
account” as a separate, non-lapsing account in the General Fund to
contain any money the law requires to be deposited in it.
The bill appropriates $750 million for the account and specifies that
American Rescue Plan Act funds can be used, if applicable, for some of
the funding.
The comptroller must expend moneys in the account at the
administrator’s direction for the following purposes:
1. payments to eligible applicants under the pandemic pay program
and
2. program operating expenses, including for (a) hiring employees
and (b) public outreach and education about the program and
account.
Under the bill, no more than 5% of the total amount the account
receives can be used for administrative costs, including hiring 2022HB-05356-R000458-BA.DOCX
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temporary or durational staff or contracting with a third-party
administrator. The administrator must make all reasonable efforts to
limit operating costs and expenses without compromising essential
workers’ access to the program.
APPLICATIONS
To apply, the bill requires an essential worker to submit a claim to the
administrator by January 1, 2023, in a form and manner that the
administrator requires. Claims must include: (1) proof of employment
as an essential worker between March 10, 2020, and when the bill passes,
as determined by an essential worker’s proof of earnings, and (2) any
additional information the administrator requires. Proof of employment
can include official payroll records or another form of proof including a
letter from an employer stating the essential worker’s dates of work, or
a declaration from an individual with personal knowledge of the
essential worker’s employment.
Under the bill, the administrator must promptly review and evaluate
all applications and determine, based on the information the essential
worker provided, or additional information provided at the
administrator’s request, whether or not the application will be
approved. The administrator must provide a written determination to
each applicant within 60 business days after the application submission
date, or, if the administrator requested additional information, within
10 business days after the administrator receives the additional
information.
PAYMENTS
If a claim is approved, the administrator must direct the comptroller
to pay $2,000 to a full-time essential worker or $1,000 to a part-time
essential worker within 10 business days after approval. For those who
are deemed part-time, the rate must be prorated down from 29 to one
hour per week, depending upon hours worked, at a rate of $33 dollars
per hour, except someone who worked 29 hours per week must receive
the maximum amount of $1,000.
APPEALS 2022HB-05356-R000458-BA.DOCX
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Under the bill, an essential worker can request that a determination
be reconsidered by filing a request with the administrator, on a form the
administrator prescribes, within 20 business days after the
determination notice is mailed.
Within three business days after receiving the request, the
administrator must designate someone to conduct the reconsideration
and give him or her all documents related to the worker’s claim. The
designee must conduct the reconsideration as a de novo review of all
relevant evidence within 20 business days after the request.
The bill requires the designee to issue a written decision affirming,
modifying, or reversing the administrator’s decision within 20 business
days and submit it to the administrator and the worker. The decision
must include a short statement of findings that specifies whether
pandemic pay will be paid to the worker as required by the bill.
Regardless of the laws under the Uniform Administrative Procedure
Act or administrative appeals, a worker cannot further appeal a case
beyond the administrator’s designee.
Under the bill, any statement, document, information, or matter may
be considered by the administrator or, on reconsideration, by the
administrator’s designee if, in his or her opinion, it contributes to a
determination of the claim, regardless of whether it would be admissible
in a court.
PAYMENTS NOT TAXABLE UNDER STATE LAW
The bill exempts program payments from the state income tax. To the
extent that the payments must be properly included in gross income for
federal income tax purposes (for the taxable years starting on or after
January 1, 2023, and January 1, 2024), any payments a worker received
under the bill during the applicable taxable year must be subtracted
from adjusted gross income under Connecticut state income tax law
(Chapter 229). Additionally, the payments must not be considered
income when determining an individual’s eligibility for any state-
administered program. 2022HB-05356-R000458-BA.DOCX
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ERRONEOUS PAYMENTS AND FRAUD
If a claim is paid to an affected person erroneously or due to the
person’s willful misrepresentation, the bill allows the administrator to
seek repayment of benefits from the affected person. In the case of
willful misrepresentation, the administrator may also seek payment of
a penalty equal to 50% of the benefits paid because of the
misrepresentation.
REPORTS
The bill requires certain regular reports to the program administrator
and the legislature.
On or before September 1, 2022, and each following month, and any
time the administrator requests, the comptroller must submit a report to
the administrator indicating the current value of the pandemic pay
account.
Starting September 1, 2022, and at least each following quarter, the
administrator must submit a report to the Labor and Public Employees
Committee on the account’s financial condition. The report must
include:
1. an estimate of the account value as of the report’s date,
2. the effect of scheduled payments on the account value,
3. an estimate of the monthly administrative costs needed to
operate the program and the account, and
4. any recommendations for legislation to improve the program’s
or account’s operation or administration.
ANTI-RETALIATION
The bill prohibits an employer from (1) discharging or causing to be
discharged, disciplining, or discriminating against a worker because he
or she applied for pandemic pay under the bill or (2) deliberately
misinforming or dissuading a worker from filing an application.
It also authorizes any employee who was discharged, disciplined, 2022HB-05356-R000458-BA.DOCX
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discriminated against, or deliberately misinformed or dissuaded from
filing a pandemic pay application, to bring a civil action in the Superior
Court in the district where the employer has its principal office. The
action can seek reinstatement to the worker’s position, payment of back
wages, reestablishment of any lost benefits the employee was otherwise
entitled to, and any other damages caused by the discrimination or
discharge. The bill specifies that an employee who prevails in civil
action must be awarded reasonable attorney’s fees and costs. Under the
bill, the court can also award punitive damages.
COMMITTEE ACTION
Labor and Public Employees Committee
Joint Favorable Substitute
Yea 8 Nay 4 (03/24/2022)