SB 358 — AN ACT CONCERNING THE RETENTION OF SERVICE CONTRACT WORKERS.

356 subdivision (1) of this subsection, the terminated contractor shall provide the information described in subdivision (2) of this subsection to theawarding authority not later thanthree days after receiving notice that the service contract will be terminated or notice of the sale or transfer of a property.

The awarding authority shall be responsible for providing such information to the successor [contractor] employer as soon as the successor [contractor] employer has been selected.

(4) (A) [Except as provided in subparagraph (D) of this subdivision, a] A successor [contractor] employer shall retain, for at least ninety days from the date of first performance of services under the successor service contract or from the date of the sale or transfer of a property, all of the employees or service workers who were continuously employed by the terminated contractor at the site or sites covered by the service contract during the [six-month] ninety-day period immediately preceding the termination or nonrenewal of such service contract, including any periods of layoff or leave with recall rights.

(B) [Except as provided in subparagraph (D) of this subdivision, if] If the successor service contract is terminated prior to the expiration of such ninety-day period, then any [contractor] successor employer awarded a subsequent successor service contract shall be bound by the requirements set forth in this subsection to retain, for a new ninety-day period commencing with the onset of the subsequent successor service contract, all of the employees or service workers who were previously employed by any one or more of the terminated contractors at the site or sites covered by the service contract continuously during the [six- month] ninety-day period immediately preceding the date of the most recently terminated service contract, including any periods of layoff or leave with recall rights.

(C) At least five days prior to the termination of a service contract or the sale or transfer of a property where employees or service workers were employed at any time during the previous ninety-day period, or at least fifteen days prior to the commencement of the first performance of service under a successor service contract, whichever is later, the sSB358 / File No.

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356 successor [contractor] employer shall hand-deliver a written offer of employment in substantially the form set forth below to each such employee or service worker in such employee's or service worker's native language or any other language in which such employee or service worker is fluent:

....(Name of employee or service worker) We have received information that you are employed by ....

(Name of employee or service worker) We have received information that you are employed by ....

(name of successor contractor)[contractor] employer) and have[have been hired to provideprovide] will be providing services similar to those of ....

If we do not LCOreceive your response by the end of business that day, we will not hire sSB358 / File No.

2307356 67 ofsSB358 10File RaisedNo. Bill No.358 receive your response by the end of business that day, we will not hire you and you will lose your job.

356 you and you will lose your job.

(successor contractor[contractor] employer telephone number).

If you believe that you have been fired or laid off in violation of this law, you have the right to sue[sue us and] befile awardeda backcomplaint pay,with attorneys'the feesLabor andCommissioner courtandbeawardedback pay,attorneys' feesandcourt costs.

(Name of successor contractor)[contractor] employer) ....

(Address of successor contractor)[contractor] employer) ....

(Telephone number of successor contractor)"[contractor] employer)" Each offer of employment shall state the time within which such employee or service worker must accept such offer but in no case shall that time be less than ten days from the date of the offer of employment.

[(D) The provisions of subparagraphs (A) and (B) of this subdivision shall not be construed to require a successor contractor to retain any employee whose attendance and performance records, while working under the terminated service contract, would lead a reasonably prudent employer to terminate the employee.] (5) If at any time a successor contractor[contractor] employer determines that fewer employees or service workers are required to perform the successor service contract than were required by the terminated contractor, the successor contractor[contractor] employer shall be required to retain such employees or LCOservice No.workers by seniority within each job classification, based upon the employees' total length of service at the affected site or sites.

2307sSB358 7/ ofFile 10No. Raised Bill No.358 service workers by seniority within each job classification, based upon the employees' total length of service at the affected site or sites.

(6)356 During8 suchsSB358 ninety-dayFile period,No. the successor contractor shall maintain a preferential hiring list of employees or service workers eligible for retention pursuant to subdivision (4) of this subsection, who were not initially retained by the successor contractor, from which the successor contractor shall hire additional employees or service workers, if necessary.

(7)356 Except(6) asDuring providedsuch underninety-day period, the successor [contractor] employershallmaintainapreferentialhiringlistofemployees orservice workers eligible for retention pursuant to subdivision (5)(4) of this subsection, duringwho suchwere ninety-daynot period,initially retained by the successor contractor[contractor] shallemployer, notfrom dischargewhich withoutthe justsuccessor causecontractor anshall employeehire additional employees or service workerworkers, retainedif pursuantnecessary. to this section.

(7) Except as provided under subdivision (5) of this subsection, during such ninety-day period, the successor [contractor] employer shall not discharge without just cause an employee or service worker retained pursuant to this section.

(8) If the performance of an employee or service worker retained pursuant to this section is satisfactory during the ninety-day period, the successor contractor[contractor] employer shall offer the employee or service worker continued employment under the terms and conditions established by the successor contractor, or as required by law.

(c) (1) An employee or service workerworker, or a group of employees or service workers, displaced or terminated in violation of this section, or such employee's or service worker's collective bargaining representative, may [bring an action in Superior Court against the awarding authority, the terminated contractor or the successor contractor, jointly or severally, to recover damages for any violation of the obligations imposed under this section] file a complaint with the Labor Commissioner.

(2) If the [employee prevails in such action, the court] commissioner finds that the awarding authority, the terminated contractor or the successor contractoremployer has violated the provisions of this section, the LCOcommissioner may award the employee or service worker (A) back pay, including the value of benefits, for each day during which the violation continues, that shall be calculatedat arate ofcompensationnot less than sSB358 / File No.

2307356 89 ofsSB358 10File RaisedNo. Bill No.358 commissioner may award the employee or service worker (A) back pay, including the value of benefits, for each day during which the violation continues, that shall be calculatedat arate ofcompensationnot less than thehigherof(i)theaverageregularrateofpayreceivedbytheemployee or service worker during the last year of employment in the same job occupation classification, or, if the employee or service worker has been employed for less than one year, the average rate of pay for the employee's or service worker's entire employment multiplied by the average number of hours worked per day over the last four months of employment preceding the date of the violation, or (ii) the final regular rate of pay received by the employee or service worker at the date of termination multiplied by the average number of hours worked per day over the last four months, [and] (B) reinstatement to the employee's or service worker's former position at not less than the most recent rate of compensation received by the employee or service worker, including the value of any benefits, and (C) compensatory damages.

(3)356 [Ifthehigherof(i)theaverageregularrateofpayreceivedbytheemployee or service worker during the employeelast prevailsyear inof suchemployment action,in the courtsame shalljob awardoccupation classification, or, if the employee reasonableor attorneyservice feesworker andhas costs.]been Anyemployed awardingfor authority,less terminatedthan contractorone year, the average rate of pay for the employee's or successorservice contractorworker's foundentire employment multiplied by the Laboraverage Commissionernumber toof havehours violatedworked per day over the provisionslast four months of thisemployment sectionpreceding shallthe bedate liableof tothe theLaborviolation, Departmentor for(ii) acivilpenaltythe offivefinal hundreddollarsregular perrate of pay received by the employee or service worker forat eachthe date of termination multiplied by the average number of hours worked per day over the violationlast continues.four months, [and] (B) reinstatement to the employee's or service worker's former position at not less than the most recent rate of compensation received by the employee or service worker, including the value of any benefits, and (C) compensatory damages.

(4)(3)If Nothingtheemployee in this subsection shall be construed to limit an employee's or service worker'sworker rightprevailsinsuchaction,the tocourt bringshall aaward common law cause of action for wrongful termination against the awardingemployee authority,reasonable theattorney terminatedfees contractorand orcosts. the successor contractor.

(5)(4) AnyNothing partyin aggrievedthis bysubsection theshall decisionbe ofconstrued theto commissionerlimit mayan appealemployee's theor decisionservice worker's right to thebring Superiora Courtcommon inlaw accordancecause withof action for wrongful termination against the provisionsawarding ofauthority, chapterthe 54.terminated contractor or the successor [contractor] employer.

(d)Anyawardingauthorityorcontractorwhoknowinglyviolatesthe(d) Any awarding authority, [or] terminated contractor or successor employer who knowingly violates the provisions of this section shall pay a penalty not to exceed one[one] five hundred LCOdollars No.per employee or service worker for each day the violation continues.

2307(e) 9Any party aggrieved by the decision of 10the Raisedcommissioner Billmay No.appeal the decision to the Superior Court in accordance with the provisions of chapter 54.

358 dollars per employee or service worker for each day the violation continues.

Section 1 October 1, 2026 31-57g StatementsSB358 of/ Purpose:File No.

To356 offer10 greatersSB358 protectionstoFile certainserviceworkerswhoNo. are displaced or terminated when service contracts are terminated.

[Proposed356 deletionsStatement areof enclosedLegislative inCommissioners: brackets.

ProposedIn additionsSubsec. are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

2307(a)(5)(F), 10"public ofor 10private elementary, middle or high school" was changed to "public or nonpublic school" for proper form;

in Subsec.

(a)(5)(N), "college or university" was changed to "independent institution of higher education" for proper form;

in Subsec.

(a)(10), "including" was changed to "[including] but does not include" and "the state and it's political subdivisions." was changed to "the state.

[and it's political subdivisions.]" for consistency;

in Subsec.

(a)(12)(A)(iii), "private or public elementary, middle or high school, college or university campus" was changed to "public or nonpublic school, independent institution of higher education" for proper form;

and in Subsec.

(b)(2)(B), "contract" was changed to "successor service contract" for consistency.

LAB Joint Favorable Subst.

sSB358 / File No.

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356 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Labor Dept.

GF - Cost 86,681 112,907 Labor Dept.

GF - Potential See Below See Below Revenue Gain State Comptroller - Fringe GF - Cost 32,179 42,906 Benefits1 Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 27 $ FY 28 $ All Municipalities;

Local and Potential Potential Cost Potential Cost Regional School Districts Cost Explanation The bill expands existing worker retention requirements to include a broader range of service contracts and covered locations.

This results in (1) a cost to the Department of Labor (DOL) of $86,681 in FY 27 (partial year cost) and $112,907 in FY 28, (2) a cost to the State Comptroller- Fringe Benefits account of $32,179 (partial year cost) and $42,906 in FY 28, (3) a potential revenue gain to the DOL, and (4) a potential cost to municipalities and districts.

State Impact:

The bill changes how complaints are currently handled by allowing employees to file complaints with the DOL and requiring the agency to 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 41.82% of payroll in FY 27.

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356 hold hearings instead of bringing action to the Superior Court .

To accommodate thischange,theagency wouldneedto hire oneadditional staff attorney for its Legal Division (annualized cost of $102,597 for salary, $10,311 for overhead, and $42,906 for fringe benefits).

Additionally, the bill increases penalties for violations from up to $100 to up to $500 per employee or service worker for each day the violation continues.

This results in a potential revenue gain to the DOL to the extent violations are found and penalties are paid.

Municipal Impact:

The bill requires certain vendors providing contracted services to municipalities and school districts to retain their predecessors' employees for at least 90 days.

This results in a potential cost to municipalities and districts, beginning in FY 27, associated with increased personnel and vendor costs.

The potential cost to a municipality or district depends on the terms of existing and future contracts, and the terms of a contract that a municipality or district would have entered into in the absence of the bill's provisions.

There is also a potential cost to municipalities and districts associated with violating the provisions of the bill including:

(1) making backpay or compensatory damage payments if the DOL determines the municipality or district violated the terms of the bill;

and (2) a penalty of up to $500 per day per worker for which the provisions of the bill were violated.

The cost to a municipality or district depends on the violation of the bill's provisions and DOL's ruling in a hearing.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation, violations, and penalties collected.

2The court system disposes of over 250,000 cases annually and any decrease in cases as a result of the bill is not anticipated to be great enough to result in savings.

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356 OLR Bill Analysis sSB 358 AN ACT CONCERNING THE RETENTION OF SERVICE CONTRACT WORKERS.

SUMMARY This bill requires entities that (1) take over certain service contracts at covered locations, (2) contract out services, or (3) receive property in a sale or transfer, to retain certain service workers from their predecessors for at least 90 days.

If the worker’s performance is satisfactory during these 90 days, the successor employer must extend them an offer of continued employment either under terms and conditions the successor employer sets or by law.

Existing law already gives similar protections to employees performing food and beverage services at Bradley International Airport (BIA) after a contract termination.

The bill imposes responsibilities on the authority (at BIA or other covered locations) that initially awards the contract, the original contractor, and successor employers who have two or more employees.

Current law imposes these responsibilities on the authority that initially awards the contract, the original contractor, and successor contractors who have 10 or more employees.

Thebillextendsexistingprovisionstothenewcircumstancescovered by the bill, such as those requiring advance notice to (1) a contractor whose contract will be terminated or not renewed, (2) workers, and (3) the union representing the workers.

The billpermitsworkerswho aredisplacedorterminatedinviolation of the bill to file a complaint with the labor commissioner (currently BIA workers can sue in court).

It requires the labor commissioner to hold a hearing andpermitsthecommissioner to awardtheemployee or service worker back pay, benefits, reinstatement to their former position at their most recent salary and benefit level, and compensatory damages.

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356 The bill also makes conforming and technical changes.

EFFECTIVE DATE:

October 1, 2026 SCOPE OF THE BILL The bill expands the application of the law giving certain job protections to BIA food and beverage workers to contracts for services by service workers at covered locations.

Under the bill, a service worker is a person performing certain services under a successor service contract, including:

1.

care or maintenance services, including a security guard, front- desk worker, janitor, housekeeper, maintenance employee, concierge, door attendant, building superintendent, grounds maintenance worker, stationary fireman, elevator operator, or window cleaner;

2.

passenger-related security services, cargo and in-ramp services, in-terminal passenger and baggage handling, and cleaning services at an airport;

3.

food preparation or dietary services at a school, private higher education institution, hospital, nursing home facility, or an institution operated or managed by an assisted living services agency;

4.

health care services provided at a hospital, nursing home facility, or an institution operated or managed by an assisted living services agency;

and 5.

student transportation services.

Under the bill, a service worker is not a person who is (1) a managerial, supervisory, or confidential employee under the federal Fair Labor Standards Act, or (2) engaged to perform services related to a project that requires a permit from a municipality, such as a building, mechanical, plumbing, structural, or electrical project.

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356 The services must be provided at “covered locations,” which are:

1.

multifamily residential buildings or complexes with 50 or more units;

2.

commercial centers or complexes over 75,000 square feet;

3.

municipal office buildings or facilities;

4.

electric or natural gas company facilities;

5.

public or nonpublic schools;

6.

cultural centers or complexes, such as museums, convention centers, arenas, or performance halls;

7.

shopping malls or bank branches;

8.

industrial sites;

9.

pharmaceutical labs;

10.

airports or train stations;

11.

hospitals, nursing homes,or institutionsoperatedor managed by assisted living services agencies;

12.

warehouses, distribution centers, or other facilities that store or distribute general merchandise, refrigerated goods, or other products;

13.

private higher education institution campuses;

14.

property owned by a carrier (a local or regional school district, educational institution providing elementary or secondary education, someone under contract with them to transport students, or someone primarily transporting people under age 21 for pay) to transport students or related services;

and 15.

data centers.

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356 Definitions of Various Medical Facilities The bill defines a hospital as an establishment for the lodging, care, and treatment of people suffering from disease or other abnormal physical or mental conditions.

It includes inpatient psychiatric services in general hospitals.

Under the bill, a nursing home facility is any chronic and convalescent nursing home (1) or any rest home with nursing supervision that provides nursing supervision under a medical director hours a day, or (2) that provides skilled nursing care under medical supervision and direction to carry out nonsurgical treatment and dietary procedures for chronic diseases, convalescent stages, acute diseases, or injuries.

The bill defines an assisted living services agency as an agency that provides chronic and stable individuals with nursing services and assistance with activities of daily living.

It may have a dementia special care unit or program.

Awarding Authority Existing law defines an awarding authority as any person that awards or enters into a contract to perform food and beverage services at BIA.

The bill extends this to anyone who awards or enters into a contract to perform services at a covered location starting October 1, 2026.

The bill specifies that the state and federal government are not awarding authorities.

Successor Employer The bill defines a “successor employer” as an employer that has (1) been awarded a successor service contract, (2) purchased or acquired control of a property where employees or service workers were employed at any time during the past 90 days, or (3) an awarding authority that has hired employees or service workers to perform services that are substantially the same as those previously provided under a terminated or nonrenewed service contract.

The bill extends the definitions of successor service contracts and sSB358 / File No.

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356 terminated contractorsto cover the scope ofthe circumstances added by the bill.

AWARDING AUTHORITY'S RESPONSIBILITIES The bill generally extends existing responsibilities of awarding authorities to the new situations covered by the bill.

The awarding authority must give advance notice to a contractor whose contract will be terminated or not renewed, the workers, and the union representing them within 15 days of the termination of the service contract, the contracting out of services previously done by the authority, or the sale or transfer of the property (if workers were employed there within the prior 90 days).

Under the bill, and existing law for eligible BIA workers, theauthority must give thecontractor andunionthename, address, and telephone number of the successor employer or contractors, if known.

The bill requires this notice in writing and posted in a conspicuous place.

Under the bill and existing law for eligible BIA workers, authorities must also give new employers information about the workers.

RESPONSIBILITIES OF SUCCESSOR EMPLOYERS The bill generally extends existing responsibilities of successor employers to the new situations covered by the bill.

A successor employer must hand deliver awritten employment offer to the workers.

It must be written in a language the worker understands.

As under current law, it must be delivered by the later of five days before the termination of the original contract or 15 days before the contractor begins to provide service.

The bill also requires this notice five days before the sale or transfer of a covered location where whether workers were employed during the previous 90 days.

Existing law already requires successor contractors to deliver this written offer to each eligible BIA employee within this timeframe.

The bill,andexisting lawfor eligibleBIA workers, specify thenotice’s content.

Among other things, the employer must inform the worker of pay rate, hours (per shift and per week), and benefits it is offering.

The notice must (1) describe the worker’s rights under the bill, (2) include sSB358 / File No.

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356 the employer’s name, address, and telephone number;

and (3) state that the employee or service worker has 10 days to respond.

Under the bill, the notice also must inform workers that they can file a complaint with the labor commissioner.

Current law requires successor contractors to inform BIA employees, in the notice, that they have the right to sue the successor contractor.

Under the bill and existing law for eligible BIA workers, a worker cannot be fired, during a 90-day period, without just cause.

The bill gives this protection to workers who were employed during the prior days (for BIA workers it reduces this time frame from the previous six months).

As under existing law for BIA workers, the bill requires contractors, during these 90 days, to keep a preferential hiring list of workerseligibleforretentionthatitdidnotinitiallyretain.(Itisnotclear which employees or service workers would be affected by this provision.) The contractor must hire additional employees or service workers, if needed, from this list.

Under the bill and existing law for BIA workers, the contractor may determine at any time that it needs fewer employees or service workers than the terminated contractor had and can lay them off.

In doing so, it must retain employees by seniority within each job class, based on an employee’s total length of service at the affected site.

The bill eliminates a provision applicable to BIA workers that a successor contractorisnot requiredtoretainemployeeswithattendance and performance records under the prior contract that would lead a reasonably prudent employer to terminate them.

REMEDIES FOR A DISPLACED EMPLOYEE OR SERVICE WORKER Under the bill, a worker displaced or terminated in violation of the above provisions can file a complaint with the labor commissioner, who must hold a hearing on receipt of the complaint.

It requires the labor commissioner to send each party a written copy of her decision after the hearing.

If the commissioner decides that the awarding authority, terminated contractor, or successor employer has violated the above sSB358 / File No.

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356 provisions, she may award the employee or service worker back pay, benefits, reinstatement to their former position at their most recent salary and benefit level, and compensatory damages.

As under existing law for BIA workers, the bill requires that back pay be based on at least the higher of (1) the worker’s regular pay rate for their last year on the job (their last four months on the job if they were employed for less than one year), or (2) their final regular rate of pay on their last day.

Under the bill, an aggrieved party can appeal the labor commissioner’s decision to the Superior Court.

The bill eliminates current law which permits (1) a BIA employee to bring suit in Superior Court and (2) courts to award back pay, reasonable attorney fees, and costs if the aggrieved employee prevails.

As under current law for eligible BIA workers, these provisions do not limit a worker’s right to file suit against the awarding authority, terminated contractor, or successor employer for wrongful termination under common law.

Under the bill, an awarding authority, terminated contractor, or successor employer who violates the above provisions must pay a penalty of $500 per employee or service worker for each day the violation continues.

This replaces current law, which requires an awarding authority or contractor in violation of these provisions related to BIA workers to pay a penalty of $100 per employee for each day the violation continues.

BACKGROUND Related Bill sHB 5003 (§ 10), favorably reported by the Labor and Public Employees Committee, has an identical provision on the retention of service contract workers.

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356 COMMITTEE ACTION Labor and Public Employees Committee Joint Favorable Substitute Yea 9 Nay 4 (03/17/2026) sSB358 / File No.

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