OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa SB-418 AN ACT CONCERNING WAGE THEFT. AMENDMENT LCO No.: 5008 File Copy No.: 253 Senate Calendar No.: 204 Primary Analyst: CW 4/20/22 Contributing Analyst(s): () OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 23 $ FY 24 $ Labor Dept. GF - Cost None 57,493 State Comptroller - Fringe Benefits 1 GF - Cost None 21,275 Labor Dept. GF - Revenue Gain None Up to 500,000 Note: GF=General Fund Municipal Impact: None Explanation The amendment strikes the underlying bill and associated fiscal impact. The amendment would require the Department of Labor (DOL) to issue citations to, and allow the agency to levy fines against, contractors and subcontractors who violate the state's prevailing wage. This results in: 1) a cost to DOL estimated at $78,768 beginning in FY 24, and 2) a potential General Fund revenue gain from fines estimated at up to 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 40.53% of payroll in FY 23. 2022SB-00418-R00LCO05008-FNA.DOCX Page 2 of 2 $500,000 beginning in FY 24. 2 It is anticipated that DOL would require one part-time Staff Attorney in order to accommodate additional administrative hearings at an annualized cost of $73,768 ($52,493 for salary and $21,275 for fringe benefit costs), including $5,000 in associated overhead costs (computer, office supplies, etc.). The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department. 2 Under current law, the labor commissioner may issue fines ranging from $2,500 to $5,000 per violation; the amendment establishes a flat rate of $5,000 per violation. Consequently, the revenue gain is dependent on how many violations would be assessed at an amount lower than $5,000.