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.
As Amended by Senate "A" (LCO 5008)
Senate Calendar No.: 204
Primary Analyst: CW 4/21/22
Contributing Analyst(s):
Reviewer: MM
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 bill, which requires the labor commissioner to issue citations to,
and allows her to levy fines against, contractors and subcontractors who
violate the state's prevailing wage, results in: 1) a cost to the Department
of Labor (DOL) estimated at $78,768 beginning in FY 24, and 2) a
potential General Fund revenue gain from fines estimated at up to
$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
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.
2
Under current law, the labor commissioner may issue fines ranging from $2,500 to
$5,000 per violation; the bill 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. 2022SB-00418-R01-FN.DOCX Page 2 of 2
annualized cost of $73,768 ($52,493 for salary and $21,275 for fringe
benefit costs), as well as $5,000 in associated overhead costs (computer,
office supplies, etc.).
Senate "A" eliminates the cost in FY 23 by delaying the effective date
and reduces the cost in FY 24 identified in the fiscal note on the
underlying bill.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future, with the cost impact subject to inflation.
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.