OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
SB-8
AN ACT CONCERNING PROTECTIONS FOR WORKERS AND
ENHANCEMENTS TO WORKERS' RIGHTS.
Primary Analyst: RP 3/24/25
Contributing Analyst(s): ME, BP, CR
Reviewer: PR
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Labor Dept. GF - Cost 195,000 199,000
Workers' Compensation Com. WCF - Potential
Cost
None Up to
91,630
Resources of the General Fund GF - Potential
Revenue Gain
None See Below
Labor Dept. UITF - Potential
Cost
None See Below
Labor Dept. UITF - Potential
Revenue Gain
None See Below
Note: GF=General Fund; WCF=Workers' Compensation Fund; UITF=Unemployment Insurance Trust Fund
Municipal Impact: None
Explanation
The bill establishes protections for employees of certain warehouse
distribution centers and makes striking workers (in any type of
employment) eligible for unemployment benefits after they have been
on strike for 14 consecutive days, resulting in the following fiscal
impacts.
Section 8 allows covered employees or the Attorney General to bring
a civil action in Superior Court for violations of sections 2 to 7, resulting
in a potential revenue gain to the state. Violations may be subject to civil
penalties of up to $3,000.
1
These cases are not expected to result in a cost
1
$1,000 for the first violation, $2,000 for the second violation, and $3,000 for the third
and subsequent violations. 2025SB-00008-R000177-FN.DOCX Page 2 of 3
to the Attorney General or the courts.
2
Section 9 requires the Workers' Compensation Commission (WCC)
to monitor injury rates at warehouse distribution centers, resulting in a
potential cost to the Workers' Compensation Fund of up to $91,630 in
FY 27. Because WCC does not currently have a system or staff
monitoring these injury rates in this manner, it's possible that, if the
workload increase is great enough, they will need to hire a part-time
State Program Manager, for $50,000 per year with an estimated fringe
benefits rate of $41,630.
3
Section 10 makes striking workers eligible for unemployment
benefits after they have been on strike for 14 consecutive days. This
results in a potential cost and potential revenue gain to the
Unemployment Insurance Trust Fund, starting in FY 27. In addition, the
bill results in a one-time cost of $394,000 to the General Fund ($195,000
in FY 26 and $199,000 in FY 27).
To the extent any striking workers become eligible for
unemployment benefits as a result of the bill, this would result in a cost
to the trust fund. Subsequent increases in experience ratings by
employers would result in increased tax revenue to the trust fund on a
lagged basis. The amounts are dependent on striking workers' benefits
and affected employers' experience ratings.
Additionally, the bill would require the Labor Department to make
state-specific technology changes to ReEmployCT, the unemployment
insurance administration system, which results in a cost of $195,000 in
FY 26 and $199,000 in FY 27 ($394,000 in total).
2
The court system disposes of over 250,000 cases annually and the number of cases is
not anticipated to be great enough to need additional resources.
3
The fringe benefit costs for employees funded out of other appropriated funds are
budgeted within the fringe benefit account of those funds, as opposed to the fringe
benefit accounts within the Office of the State Comptroller. The estimated active
employee fringe benefit cost associated with most personnel changes for other
appropriated fund employees is 83.26% of payroll in FY 26. 2025SB-00008-R000177-FN.DOCX Page 3 of 3
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the number of civil actions brought
under section 8, extent of the increased workload to WCC under section
9, and for the trust fund, the number of workers and employers affected.
There is no cost to the General Fund beyond FY 27.