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.
As Amended by House "B" (LCO 4443)
House Calendar No.: 232
Primary Analyst: CR 4/24/24
Contributing Analyst(s): CW
Reviewer: CW
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 - Potential
Revenue Gain
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
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-R010617-FN.docx Page 2 of 2
Section 8 of the bill prohibits the Office of Policy and Management
(OPM) from applying holdbacks to personal services expenditures for
wage enforcement agents within the Department of Labor (DOL) for FY
25. To the extent OPM would have applied such holdbacks in FY 25,
this results in (1) additional Personal Services funds being available to
DOL for that fiscal year and (2) a commensurate amount of FY 25
holdbacks being applied against other accounts or agencies.
House “B” adds provisions that (1) establish a task force to study the
establishment of paid sick leave tax credits for employers that employ
five or less individuals in the state, (2) require the Labor Commissioner
to ensure that necessary wage enforcement duties and responsibilities
associated with administering paid sick leave are performed within
available appropriations for FY 25, and (3) prohibit the Office of Policy
and Management (OPM) from applying holdbacks to personal services
expenditures for wage enforcement agents within the DOL for FY 25.
This does not result in any fiscal impact.
The Out Years
The ongoing fiscal impact identified above would continue into the
future subject to inflation, number of violations, and penalties paid.