An Act Concerning Call Centers And Notice Of Closures.
Impact
If this bill is enacted, it would potentially deter companies from relocating their call centers to other states or countries due to the penalties involved. A call center employer that does not comply with the notification requirement may face civil penalties up to $10,000 for each day of violation. By mandating early notification, the bill aims to give employees and the community time to prepare for the potential job loss and explore remedial measures, thus maintaining employment levels within the state.
Summary
House Bill 05273 seeks to address the issue of call center relocations by requiring employers to notify the Labor Commissioner at least 100 days prior to moving a call center out of the state. This bill defines a call center as an establishment where employees handle customer assistance or service inquiries and applies to businesses employing 50 or more individuals. The intent is to protect jobs within the state by discouraging the closure of local call centers.
Contention
Notable points of contention surrounding HB 05273 may arise from the potential burden placed on businesses due to the imposed requirements and penalties. Critics may argue that the bill could be seen as government overreach into the operational strategies of businesses, especially those facing financial pressures that necessitate relocation. Additionally, concerns about the practicalities of enforcing the penalties and the impact on business investment strategies within the state have been raised.
Legislative history
The voting on HB 05273 occurred on March 10, 2020, where it passed with a tally of 9 votes in favor and 5 against, reflecting a divided opinion among lawmakers on the efficacy and reach of the proposed legislation.
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