HB 6901 — AN ACT CONCERNING THE RECOUPMENT OF STATE COSTS ATTRIBUTABLE TO LOW WAGE EMPLOYEES.

AN ACT CONCERNING THE RECOUPMENT OF STATE COSTS ATTRIBUTABLE TO LOW WAGE EMPLOYERS.EMPLOYEES.

General Assembly   ProposedCommittee Bill No.

6901   January Session, 2017   LCO No.

13684639   *01368**04639HB06901LAB* Referred to Committee on LABOR AND PUBLIC EMPLOYEES   Introduced by:

  REP.(LAB)   AN ACT CONCERNING THE RECOUPMENT OF STATE COSTS ATTRIBUTABLE TO LOW WAGE EMPLOYEES.

ELLIOTT, 88th Dist.

  AN ACT CONCERNING THE RECOUPMENT OF STATE COSTS ATTRIBUTABLE TO LOW WAGE EMPLOYERS.

ThatSection the1. general statutes be amended to require employers with over five hundred employees in the state and franchisors who, combined with their franchisees, collectively employ at least five hundred employees in the state, to pay a quarterly fee to the Commissioner of Labor based in part on the number of hours worked by employees who were paid on average less than fifteen dollars per hour during the quarter.

Statement(NEW) (Effective from passage) (a) As used in this section and section 2 of Purpose:this act:

(1) "Person" has the same meaning as provided in section 42-133e of the general statutes, except "person" shall not include the state or any department, agency or political subdivision thereof;

(2) "Franchise" has the same meaning as provided in section 42-133e of the general statutes;

(3) "Franchisor" has the same meaning as provided in section 42-133e of the general statutes;

(4) "Franchisee" has the same meaning as provided in section 42-133e of the general statutes;

(5) "Employee" means any individual employed or permitted to work by an employer, but does not include any individual employed in any park, camp or resort that is open not more than six months of the year;

(6) "Covered employer" means:

(A) Any person, firm, business, educational institution, corporation, limited liability company or other entity that directly employs five hundred or more employees in the state in any one quarter in the previous year, which shall be determined on January first, annually.

Such determination shall be made based upon the wage information submitted to the Labor Commissioner pursuant to subsection (j) of section 31-225a of the general statutes;

or (B) Any franchisor whose franchisees, collectively, employ five hundred or more employees in the state in any one quarter in the previous year, which shall be determined on January fifteenth, annually.

Such determination shall be made based upon the information submitted to the Labor Commissioner pursuant to section 2 of this act;

and (7) "Covered employer" does not include any private nonprofit entity, the state or any instrumentality or political subdivision thereof.

(b) Any covered employer that employs, or whose franchisee employs, any employee (1) who was listed on such covered employer's or such franchisee's payroll for at least ninety calendar days prior to the completion of the most recent calendar quarter, and (2) whose wages paid by such covered employer, or such covered employer's franchisee, during such quarter were less than or equal to fifteen dollars per hour, shall pay a fee to the Labor Commissioner for each such employee.

Such fee shall be assessed quarterly and shall be equal to one dollar for each hour such employee worked for such covered employer during the previous quarter.

Such fee shall not accrue until January 1, 2018.

(c) The commissioner shall collect such fees from each covered employer not later than sixty days after the completion of the quarter in which such fees were assessed.

The commissioner shall deposit such revenue derived therefrom with the State Treasurer who shall deposit such revenue in the General Fund.

(d) On or before October 1, 2017, the Labor Commissioner shall adopt guidelines for the determination of and collection of fees pursuant to subsections (b) and (c) of this section.

(e) Any covered employer aggrieved by the Labor Commissioner's determination of fees pursuant to subsection (b) of this section may file a complaint with the commissioner.

Upon receipt of the complaint, the commissioner shall investigate such complaint and may hold a hearing.

After the hearing, the commissioner shall send the covered employer a written copy of his or her decision.

Any covered employer who prevails in such hearing shall be awarded reasonable attorney's fees and costs.

Any covered employer aggrieved by the decision of the commissioner may appeal the decision to the Superior Court in accordance with the provisions of chapter 54 of the general statutes.

(f) A covered employer shall not (1) designate, or cause such covered employer's franchisee to designate, an employee as an independent contractor or temporary employee, (2) reduce, or cause such covered employer's franchisee to reduce, an employee's hours of work, or (3) terminate, or cause such covered employer's franchisee to terminate, an employee for the purpose of avoiding such covered employer's obligations under this section.

(g) The Labor Commissioner may request the Attorney General to investigate any violation of subsection (b) or (f) of this section.

Any information obtained pursuant to such investigation shall be exempt from disclosure under section 1-210 of the general statutes.

If the Attorney General finds that a covered employer has violated or is violating any provision of subsection (b) or (f) of this section, the Attorney General may bring a civil action in the superior court for the judicial district of Hartford in the name of the state against such covered employer.

(h) If any provision of this section or its application to any person or circumstance is held invalid by a court of competent jurisdiction, the invalidity does not affect other provisions or applications of this section that can be given effect without the invalid provision or application, and to this end the provisions of this section are severable.

(i) Nothing in this section shall be construed to preempt or override the terms of any collective bargaining agreement effective prior to January 1, 2017.

Sec.

2.

(NEW) (Effective from passage) Not later than January 1, 2018, and annually thereafter, each employer that submits wage information to the Labor Commissioner pursuant to subsection (j) of section 31-225a of the general statutes shall indicate to the commissioner, on a form and in a manner prescribed by the commissioner, whether such employer is a franchisee, and if so, such employer shall provide to the commissioner the name and address of the franchisor that granted the franchise to such employer and any other information as the commissioner may prescribe.