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General Assembly Committee Bill No. 6462
January Session, 2023
LCO No. 5635
Referred to Committee on LABOR AND PUBLIC EMPLOYEES
Introduced by:
(LAB)
AN ACT CONCERNING THE RECOUPMENT OF STATE COST
ATTRIBUTABLE TO LOW -WAGE EMPLOYERS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) As used in this section and 1
sections 2 to 5, inclusive, of this act: 2
(1) "Person" has the same meaning as provided in section 42-133e of 3
the general statutes; 4
(2) "Franchise" has the same meaning as provided in section 42-133e 5
of the general statutes; 6
(3) "Franchisor" has the same meaning as provided in section 42-133e 7
of the general statutes; 8
(4) "Franchisee" has the same meaning as provided in section 42-133e 9
of the general statutes; 10
(5) "Employee" means any individual employed or permitted to work 11
by an employer, but does not include any individual employed in any 12
park, camp or resort that is open not more than six months of the year; 13
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(6) "Covered employer" means: 14
(A) Any person, firm, business or educational institution in the state 15
that employs five hundred or more employees during any one quarter, 16
on and after January 1, 2023, based upon the wage information 17
submitted to the Labor Commissioner pursuant to section 31-225a of the 18
general statutes; 19
(B) Any franchisor in the state, where the franchisor and its 20
franchisees in the state employ, in the aggregate, five hundred or more 21
employees during any one quarter on and after January 1, 2023, based 22
upon the information submitted to the Labor Commissioner pursuant 23
to section 4 of this act; or 24
(C) "Covered employer" does not include any private nonprofit 25
entity, the state, or any department, agency or political subdivision 26
thereof; and 27
(7) "Wage" means compensation due to an employee by reason of his 28
or her employment. 29
(b) Any covered employer that employs any employee (1) who on 30
and after January 1, 2024, was listed on such covered employer's or such 31
franchisee's payroll for at least ninety calendar days prior to the 32
completion of the current calendar quarter, and (2) whose wages paid 33
by the covered employer, or the covered employer's franchisee, during 34
such quarter were less than twenty dollars per hour, shall pay a fee to 35
the Labor Commissioner. Such fee shall be assessed quarterly by the 36
commissioner and shall be equal to one dollar for each hour such 37
employee worked for such covered employer during the current 38
quarter. Such fee shall not be assessed until January 1, 2024. 39
(c) A covered employer shall not (1) designate, or cause such covered 40
employer's franchisee to designate, an employee as an independent 41
contractor or temporary employee, (2) reduce, or cause such covered 42
employer's franchisee to reduce, an employee's hours of work, or (3) 43
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terminate, or cause such covered employer's franchisee to terminate, an 44
employee for the purpose of avoiding such covered employer's 45
obligations under this section. 46
Sec. 2. (NEW) (Effective from passage) (a) The Labor Commissioner 47
shall collect fees assessed pursuant to subsection (b) of section 1 of this 48
act from each covered employer not later than sixty days after the 49
completion of the quarter in which such fees were assessed. 50
(b) The commissioner shall deposit moneys collected pursuant to 51
subsection (a) of this section with the State Treasurer, who shall deposit 52
such moneys in the General Fund. 53
Sec. 3. (NEW) (Effective from passage) Not later than October 1, 2023, 54
the Labor Commissioner shall adopt regulations, in accordance with the 55
provisions of chapter 54 of the general statutes, for the assessment and 56
collection of fees pursuant to sections 1 and 2 of this act. 57
Sec. 4. (NEW) (Effective from passage) (a) Any covered employer 58
aggrieved by the Labor Commissioner's assessment of fees, pursuant to 59
subsection (b) of section 1 of this act, may file a complaint with the 60
commissioner. Upon receipt of such complaint, the commissioner shall 61
review such complaint and shall conduct a hearing in accordance with 62
the provisions of chapter 54 of the general statutes. After such hearing, 63
the commissioner shall send the covered employer a written copy of the 64
commissioner's decision. Any covered employer who prevails in such 65
hearing shall be awarded reasonable attorney's fees and costs. 66
(b) Any covered employer aggrieved by the decision of the 67
commissioner may appeal the decision to the Superior Court in 68
accordance with the provisions of chapter 54 of the general statutes. 69
Sec. 5. (NEW) (Effective from passage) Not later than January 1, 2024, 70
and annually thereafter, each employer that submits wage information 71
to the Labor Commissioner pursuant to section 31-225a of the general 72
statutes shall inform the commissioner if such employer is a franchisee. 73
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If such employer is a franchisee, such employer shall provide to the 74
commissioner the name and address of the franchisor that granted the 75
franchise to such employer and any other information the commissioner 76
may require. 77
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 from passage New section
Sec. 3 from passage New section
Sec. 4 from passage New section
Sec. 5 from passage New section
Statement of Purpose:
To require certain employers to pay a quarterly fee to the Labor
Commissioner for each employee that receives less than twenty dollars
an hour in wages.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]
Co-Sponsors: REP. ELLIOTT, 88th Dist.; SEN. ANWAR, 3rd Dist.
SEN. CABRERA, 17th Dist.; SEN. LOPES, 6th Dist.
REP. ARNONE, 58th Dist.; REP. TURCO, 27th Dist.
REP. WELANDER, 114th Dist.; REP. CHAFEE, 33rd Dist.
REP. PARIS, 145th Dist.; REP. PALM, 36th Dist.
REP. MUSHINSKY, 85th Dist.; REP. D'AGOSTINO, 91st Dist.
REP. MESKERS, 150th Dist.; REP. LUXENBERG, 12th Dist.
REP. HUGHES, 135th Dist.; REP. KAVROS DEGRAW, 17th Dist.
REP. HALL J., 7th Dist.
H.B. 6462