Connecticut 2025 Regular Session

Connecticut House Bill HB06842 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	LCO 1 of 5
	3	+	LCO No. 256 1 of 4
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5		-	General Assembly ~~Substitute~~ Bill No. 6842
	5	+	General Assembly Raised Bill No. 6842
6	6		January Session, 2025
	7	+	LCO No. 256
7	8
	9	+
	10	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
	11	+
	12	+
	13	+	Introduced by:
	14	+	(LAB)
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12	19		AN ACT CONCERNING THE MINIMUM FAIR WAGE AND PERSONS
13	20		EMPLOYED AT CANNABIS ESTABLISHMENTS.
14	21		Be it enacted by the Senate and House of Representatives in General
15	22		Assembly convened:
16	23
17		-	Section 1. Section ~~21a-421d~~ of the general statutes is repealed and the 1
	24	+	Section 1. Section 31-60 of the general statutes is repealed and the 1
18	25		following is substituted in lieu thereof (Effective October 1, 2025): 2
19		-	(a) As used in this section: 3
20		-	(1) "Bona fide labor organization" means (A) with respect to a labor 4
21		-	peace agreement entered into on or before September 30, 2023, a labor 5
22		-	union that (i) represents employees in this state with regard to wages, 6
23		-	hours and working conditions, (ii) whose officers have been elected by 7
24		-	a secret ballot or otherwise in a manner consistent with federal law, (iii) 8
25		-	is free of domination or interference by any employer and has received 9
26		-	no improper assistance or support from any employer, and (iv) is 10
27		-	actively seeking to represent cannabis workers in the state, and (B) with 11
28		-	respect to a labor peace agreement entered into on or after October 1, 12
29		-	2023, a labor union that is included on the list established and 13
30		-	periodically updated by the department pursuant to subsection (b) of 14
31		-	this section; 15
32		-	(2) "Labor peace agreement" means an agreement between a cannabis 16
33		-	establishment and a bona fide labor organization under this section 17 Substitute Bill No. 6842
	26	+	(a) Except as provided in subdivision (5) of subsection (i) of section 3
	27	+	31-58, any employer who pays or agrees to pay to an employee less than 4
	28	+	the minimum fair wage or overtime wage shall be deemed in violation 5
	29	+	of the provisions of this part. 6
	30	+	(b) The Labor Commissioner shall adopt such regulations, in 7
	31	+	accordance with the provisions of chapter 54, as may be appropriate to 8
	32	+	carry out the purposes of this part. Such regulations may include, but 9
	33	+	are not limited to, regulations defining and governing an executive, 10
	34	+	administrative or professional employee and outside salesperson; 11
	35	+	learners and apprentices, their number, proportion and length of 12
	36	+	service; and piece rates in relation to time rates; and shall recognize, as 13
	37	+	part of the minimum fair wage, gratuities in an amount (1) equal to 14
	38	+	twenty-nine and three-tenths per cent, and effective January 1, 2009, 15
	39	+	Raised Bill No. 6842
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35	41
36		-	LCO 2 of 5
37	42
38		-	pursuant to which the owners and management of the cannabis 18
39		-	establishment agree not to lock out employees and that prohibits the 19
40		-	bona fide labor organization from engaging in picketing, work 20
41		-	stoppages or boycotts against the cannabis establishment; 21
42		-	(3) "Cannabis establishment", "dispensary facility" and "producer" 22
43		-	have the same meanings as provided in section 21a-420; and 23
44		-	(4) "Licensee" means a cannabis establishment licensee, dispensary 24
45		-	facility or producer. 25
46		-	(b) (1) Not later than October 1, 2023, the department shall establish 26
47		-	and periodically update a list of labor unions that (A) are actively 27
48		-	seeking to represent cannabis workers in this state, and (B) satisfy the 28
49		-	criteria established in subdivision (2) of this subsection. 29
50		-	(2) Not later than September 1, 2023, the department shall accept 30
51		-	applications for inclusion on the list established pursuant to subdivision 31
52		-	(1) of this subsection. Any labor union that wishes to be included on 32
53		-	such list shall submit an application to the department, in a form and 33
54		-	manner prescribed by the department. As part of such application, such 34
55		-	labor union shall attest, under penalty of false statement, that such labor 35
56		-	union: 36
57		-	(A) Is actively seeking to represent cannabis workers in this state; 37
58		-	(B) Satisfies at least two of the following criteria: 38
59		-	(i) Such labor union represents employees in this state with regard to 39
60		-	wages, hours and working conditions; 40
61		-	(ii) Such labor union has been recognized or certified as the 41
62		-	bargaining representative for cannabis employees employed at cannabis 42
63		-	establishments in this state; 43
64		-	(iii) Such labor union has executed one or more collective bargaining 44
65		-	agreements with cannabis establishment employers in this state, which 45
66		-	agreement or agreements remain effective on the date of such labor 46 Substitute Bill No. 6842
	43	+	LCO No. 256 2 of 4
	44	+
	45	+	equal to thirty-one per cent of the minimum fair wage per hour, and 16
	46	+	effective January 1, 2014, equal to thirty-four and six-tenths per cent of 17
	47	+	the minimum fair wage per hour, and effective January 1, 2015, and 18
	48	+	ending on June 30, 2019, equal to thirty-six and eight-tenths per cent of 19
	49	+	the minimum fair wage per hour for persons, other than bartenders, 20
	50	+	who are employed in the hotel and restaurant industry, including a 21
	51	+	hotel restaurant, who customarily and regularly receive gratuities, (2) 22
	52	+	equal to eight and two-tenths per cent, and effective January 1, 2009, 23
	53	+	equal to eleven per cent of the minimum fair wage per hour, and 24
	54	+	effective January 1, 2014, equal to fifteen and six-tenths per cent of the 25
	55	+	minimum fair wage per hour, and effective January 1, 2015, and ending 26
	56	+	on June 30, 2019, equal to eighteen and one-half per cent of the minimum 27
	57	+	fair wage per hour for persons employed as bartenders who customarily 28
	58	+	and regularly receive gratuities, and (3) not to exceed thirty-five cents 29
	59	+	per hour in any other industry, and shall also recognize deductions and 30
	60	+	allowances for the value of board, in the amount of eighty-five cents for 31
	61	+	a full meal and forty-five cents for a light meal, lodging, apparel or other 32
	62	+	items or services supplied by the employer; and other special conditions 33
	63	+	or circumstances which may be usual in a particular employer-34
	64	+	employee relationship. The commissioner may provide, in such 35
	65	+	regulations, modifications of the minimum fair wage herein established 36
	66	+	for learners and apprentices; persons under the age of eighteen years; 37
	67	+	and for such special cases or classes of cases as the commissioner finds 38
	68	+	appropriate to prevent curtailment of employment opportunities, avoid 39
	69	+	undue hardship and safeguard the minimum fair wage herein 40
	70	+	established. Regulations in effect on July 1, 1973, providing for a board 41
	71	+	deduction and allowance in an amount differing from that provided in 42
	72	+	this section shall be construed to be amended consistent with this 43
	73	+	section. Nothing in this section, or any regulation adopted pursuant to 44
	74	+	this section, shall be construed to require the Labor Commissioner to 45
	75	+	recognize, as part of the minimum fair wage, gratuities in an amount 46
	76	+	equal to the difference between the minimum fair wage and the 47
	77	+	employer's share for persons who are employed at a cannabis 48
	78	+	establishment. For purposes of this subsection, "cannabis establishment" 49
	79	+	Raised Bill No. 6842
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69		-	LCO 3 of 5
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71		-	union's application under this subsection; or 47
72		-	(iv) Such labor union has spent resources as part of one or more 48
73		-	attempts to organize and represent cannabis workers employed at 49
74		-	cannabis establishments in the state, which attempt or attempts remain 50
75		-	active on the date of such labor union's application under this 51
76		-	subsection; 52
77		-	(C) Has filed the annual report required by 29 USC 431(b) for the 53
78		-	three years immediately preceding the date of such labor union's 54
79		-	application under this subsection; 55
80		-	(D) Has audited financial reports covering the three years 56
81		-	immediately preceding the date of such labor union's application under 57
82		-	this subsection; 58
83		-	(E) Was governed by a written constitution or bylaws for the three 59
84		-	years immediately preceding the date of such labor union's application 60
85		-	under this subsection; 61
86		-	(F) Is affiliated with regional or national associations of unions, 62
87		-	including, but not limited to, central labor councils; 63
88		-	(G) Is overseen by officers elected by secret ballot or otherwise in a 64
89		-	manner consistent with federal law; 65
90		-	(H) Is free from domination or interference by any employer; and 66
91		-	(I) Has not received any improper assistance or support from any 67
92		-	employer. 68
93		-	(3) In the event of any change in the information that a labor union 69
94		-	submits to the department under this subsection, the labor union shall 70
95		-	correct or update such information, in a form and manner prescribed by 71
96		-	the department, not later than thirty days after the date of such change. 72
97		-	(4) In the event that a labor union no longer satisfies the criteria 73
98		-	established in subdivision (2) of this subsection, the labor union shall 74 Substitute Bill No. 6842
	83	+	LCO No. 256 3 of 4
	84	+
	85	+	has the same meaning as provided in section 21a-420. 50
	86	+	(c) Regulations adopted by the commissioner pursuant to subsection 51
	87	+	(b) of this section which define executive, administrative and 52
	88	+	professional employees shall be updated not later than October 1, 2000, 53
	89	+	and every four years thereafter, to specify that such persons shall be 54
	90	+	compensated on a salary basis at a rate determined by the Labor 55
	91	+	Commissioner. 56
	92	+	(d) (1) Effective July 1, 2019, the Labor Commissioner shall recognize, 57
	93	+	as part of the minimum fair wage, gratuities in an amount equal to the 58
	94	+	difference between the minimum fair wage and the employer's share 59
	95	+	per hour for persons, other than bartenders, who are employed in the 60
	96	+	hotel and restaurant industry, including a hotel restaurant, who 61
	97	+	customarily and regularly receive gratuities. The Labor Commissioner 62
	98	+	shall also recognize, as part of the subminimum wage established in 63
	99	+	subdivision (5) of subsection (i) of section 31-58, gratuities in an amount 64
	100	+	equal to the difference between such subminimum wage and the 65
	101	+	employer's share per hour for persons, other than bartenders, who are 66
	102	+	employed in the hotel and restaurant industry, including a hotel 67
	103	+	restaurant, who customarily and regularly receive gratuities. 68
	104	+	(2) Effective July 1, 2019, the Labor Commissioner shall recognize, as 69
	105	+	part of the minimum fair wage, gratuities in an amount equal to the 70
	106	+	difference between the minimum fair wage and the employer's share 71
	107	+	per hour for persons employed as bartenders who customarily and 72
	108	+	regularly receive gratuities. 73
	109	+	(3) As used in this subsection "employer's share" means (A) six dollars 74
	110	+	and thirty-eight cents per hour for persons, other than bartenders, who 75
	111	+	are employed in the hotel and restaurant industry, including a hotel 76
	112	+	restaurant, who customarily and regularly receive gratuities, and (B) 77
	113	+	eight dollars and twenty-three cents per hour for persons employed as 78
	114	+	bartenders who customarily and regularly receive gratuities. 79
	115	+	(4) Notwithstanding any other law or regulation, any claim brought 80
	116	+	Raised Bill No. 6842
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101		-	LCO 4 of 5
102	119
103		-	notify the department, in a form and manner prescribed by the 75
104		-	department and not later than thirty days after such labor union no 76
105		-	longer satisfies such criteria, that such labor union no longer satisfies 77
106		-	such criteria. The department shall remove such labor union from the 78
107		-	list prepared pursuant to subdivision (1) of this subsection. 79
108		-	(c) Any provisional cannabis establishment licensee, dispensary 80
109		-	facility or producer shall, as a condition of its final license approval, 81
110		-	license conversion or approval for expanded authorization, 82
111		-	respectively, enter into a labor peace agreement with a bona fide labor 83
112		-	organization. Any such labor peace agreement shall contain a clause 84
113		-	that the parties agree that final and binding arbitration by a neutral 85
114		-	arbitrator will be the exclusive remedy for any violation of such 86
115		-	agreement. 87
116		-	(d) Notwithstanding the provisions of chapter 54, if an arbitrator 88
117		-	finds that a licensee failed to comply with an order issued by the 89
118		-	arbitrator to correct a failure to abide by such agreement, upon receipt 90
119		-	of a written copy of such finding, the department shall suspend the 91
120		-	licensee's license without further administrative proceedings or formal 92
121		-	hearing. 93
122		-	(e) A licensee or bona fide labor organization may commence a civil 94
123		-	action in the Superior Court in the judicial district where the facility 95
124		-	used in the operation of a cannabis establishment is located to enforce 96
125		-	the arbitration award or to lift the license suspension. The license shall 97
126		-	remain suspended until such time that: (1) The arbitrator notifies, or 98
127		-	both of the parties to the arbitration notify, the department that the 99
128		-	licensee is in compliance with the arbitration award; (2) both of the 100
129		-	parties to the arbitration notify the department that they have 101
130		-	satisfactorily resolved their dispute; (3) the court, after hearing, lifts the 102
131		-	suspension; or (4) the court, after hearing, orders alternative remedies, 103
132		-	which may include, but need not be limited to, ordering the department 104
133		-	to revoke the license or ordering the appointment of a receiver to 105
134		-	properly dispose of any cannabis inventory. Except as provided in 106
135		-	subsection [(f)] (g) of this section, during such time that a license is 107 Substitute Bill No. 6842
	120	+	LCO No. 256 4 of 4
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137		-
138		-	LCO 5 of 5
139		-
140		-	suspended pursuant to this section, the licensee may engage in conduct 108
141		-	necessary to maintain and secure the cannabis inventory, but may not 109
142		-	sell, transport or transfer cannabis to another cannabis establishment, 110
143		-	consumer or laboratory, unless such sale or transfer is associated with a 111
144		-	voluntary surrender of license and a cannabis disposition plan 112
145		-	approved by the commissioner. 113
146		-	(f) In no event shall the Labor Commissioner recognize, as part of the 114
147		-	minimum fair wage, gratuities for persons employed at a cannabis 115
148		-	establishment, dispensary facility or producer. Any cannabis 116
149		-	establishment, dispensary facility or producer who pays or agrees to 117
150		-	pay an employee less than the minimum fair wage shall be in violation 118
151		-	of section 31-60. For purposes of this subsection, "minimum fair wage" 119
152		-	has the same meaning as provided in section 31-58. 120
153		-	[(f)] (g) A producer, cultivator or micro-cultivator may sell, transport 121
154		-	or transfer cannabis to a product packager, food or beverage 122
155		-	manufacturer, product manufacturer, dispensary facility or hybrid 123
156		-	retailer for the sale of products to qualified patients or caregivers, which 124
157		-	products shall be labeled "For Medical Use Only". 125
	122	+	under this subsection, section 31-68 as it relates to gratuities as part of 81
	123	+	the minimum wage or section 31-62-E3 of the regulations of Connecticut 82
	124	+	state agencies filed after September 24, 2022, shall be adjudicated, solely, 83
	125	+	under section 31-60-2 of the regulations of Connecticut state agencies 84
	126	+	effective on September 24, 2020, and any amendments thereto. 85
	127	+	(e) On and after October 1, 2020, no employer may take any action to 86
	128	+	displace an employee, including, but not limited to, a partial 87
	129	+	displacement of an employee, such as reducing the employee's hours, 88
	130	+	wages or employment benefits, for purposes of hiring persons under the 89
	131	+	age of eighteen years at a rate below the minimum fair wage. If the Labor 90
	132	+	Commissioner determines that an employer has violated this 91
	133	+	subsection, the commissioner shall suspend the employer's right to pay 92
	134	+	the reduced rate for employees for a period of time specified in 93
	135	+	regulations adopted pursuant to subsection (b) of this section. 94
158	136		This act shall take effect as follows and shall amend the following
159	137		sections:
160	138
161		-	Section 1 October 1, 2025 ~~21a-421d~~
	139	+	Section 1 October 1, 2025 31-60
162	140
163		-	LAB Joint Favorable Subst.
	141	+	Statement of Purpose:
	142	+	To clarify that persons employed at cannabis establishments are to be
	143	+	paid the minimum fair wage.
	144	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	145	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	146	+	underlined.]
164	147