OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sHB-5005 AN ACT EXPANDING PAID SICK DAYS IN THE STATE. Primary Analyst: CR 4/8/24 Contributing Analyst(s): BP, CW Reviewer: MM OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 25 $ FY 26 $ Labor Dept. GF - Cost 112,984 203,968 State Comptroller - Fringe Benefits 1 GF - Cost 38,768 77,537 Labor Dept. GF - Cost Minimal Minimal Note: GF=General Fund Municipal Impact: None Explanation The bill, which expands the state's paid sick leave law, results in a cost to (1) the Department of Labor (DOL) of $112,984 in FY 25 (partial year cost) and $203,968 in FY 26, and (2) the State Comptroller- Fringe Benefits account of $38,768 in FY 25 (partial year cost) and $77,537 in FY 26, as well as a potential minimal revenue gain associated with penalties from violations. In order to administer the expanded sick leave provisions, DOL would require two Wage Enforcement Agents (annualized individual cost of $93,984 for salary, $38,768 for fringe benefits, and $8,000 for equipment/overhead costs). 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 41.25% of payroll in FY 25. 2024HB-05005-R000357-FN.DOCX Page 2 of 2 The Out Years The ongoing fiscal impact identified above would continue into the future subject to inflation, number of violations, and penalties paid.