SB 942 — AN ACT CONCERNING THE ON-TIME PAYMENT OF WAGES.

Senate General Assembly RaisedFile Bill No.

942219 January Session, 2021 LCOSubstitute Senate Bill No.

3795942 ReferredSenate, toMarch 30, 2021 The Committee on LABORLabor ANDand PUBLICPublic EMPLOYEESEmployees Introducedreported by:through SEN.

(LAB)KUSHNER ANof ACTthe CONCERNING24th THEDist., ON-TIMEChairperson PAYMENTof OFthe WAGES.Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING THE ON-TIME PAYMENT OF WAGES.

(NEW) (Effective from passage) (a) AAs fiscalused intermediary who provides payroll services for employers funded in wholethis orsection: in substantial part by state funds shall be deemed an employer solely for purposes of failure to timely pay wages under sections 31-71a to 31-71i, inclusive, of the general statutes.

(b)(1) A"Employer" delaymeans causeda byfiscal theintermediary failurewho toprovides meetpayroll theservices provisionsfunded ofin thiswhole sectionor shallin besubstantial deemedpart aby failurestate funds to timely pay wagespersonal undercare sectionsattendants, 31-71abut todoes 31-71i,not inclusive,include a consumer, as defined in section 17b-706 of the general statutes.statutes;

(c) Employers shall provide clear and timely(2) communication"Personal directlycare toattendant" employeeshas regardingthe paysame discrepancies,meaning paymentas confirmationprovided or a change in paymentsection status,17b-706 including,of butthe notgeneral limitedstatutes. to, providing employees:

(1)(b) SufficientEach noticeemployer priorshall topay theirweekly, payor date,once withevery specifictwo informationweeks, aboutall anywages, problemsalary withor submittedother timecompensation recordsdue whicheach wouldpersonal impactcare theattendant amounton ofa regular pay anday, employeedesignated willin receiveadvance onby theirthe payemployer, date;using one or more of the following methods:

(2)(1) aCash; specific and accessible option to address any such problem in LCO No.

3795(2) 1by ofnegotiable 2checks; Raised Bill No.

942(3) sufficientupon timean toemployee's correctwritten theor amountelectronic receivedrequest, onby theirdirect paydeposit; date;

andor (3)(4) aby timely method to receive pay between payroll cyclescard, whereprovided athe payrequirements discrepancyof hassection not31-71k beenof resolvedthe withingeneral twenty-fourstatutes hoursare aftersatisfied. the pay date.

SuchsSB942 method/ shallFile provideNo. for pay not later than forty-eight hours after such pay date.

For219 purposes1 ofsSB942 thisFile subsectionNo. "sufficient notice" means a length of time to allow an employee to respond to and correct any issues in time to be properly paid on their pay date.

(d)219 An(c) Each employer whoshall violatesprovide anyclear provisionand oftimely thiscommunication sectiondirectly shallto beeach finedpersonal twenty-fivecare dollarsattendant perregarding daypayment forconfirmation, eacha separatechange violation.in payment status or any pay discrepancy.

TheIf Laborthere Commissioneris a pay discrepancy or an issue with the time records submitted by the personal care attendant that will impact the amount of wages, salary or other compensation the personal care attendant will receive on the personal care attendant's regular pay day, the communication shall assess(1) allcontain specific information about the discrepancy or issue, and (2) provide the personal care attendant with sufficient time, and a specific and accessible method, to respond to the employer and attempt to correct such fines.discrepancy or issue prior to the personal care attendant's regular pay date.

If the pay discrepancy or issue has not been resolved twenty-four hours or more before the personal care attendant's regular pay day, the employer shall provide to the personal care attendant a method to receive wages, salary or other compensation between payroll cycles and not later than forty-eight hours after such discrepancy or issue has been resolved.

(d) An employer who violates any provision of this section shall be fined one hundred dollars per day for each separate violation from the date of the violation to the date such violation is corrected.

If the Labor Commissioner imposes a fine under the provisions of this section, the commissioner shall, not later than thirty days after collecting such fine, remit the amount collected to the personal care attendant who was subjected to the violation.

Section 1 from passage New section StatementLAB ofJoint Purpose:Favorable Subst.

TosSB942 requiring/ fiscalFile intermediariesNo. who provide payroll services for employers funded in whole or in substantial part by state funds to meet employer timely pay obligations.

[Proposed219 deletions2 aresSB942 enclosedFile inNo. brackets.

Proposed219 additionsThe arefollowing indicatedFiscal byImpact underline,Statement exceptand underlined.]eBill entireAnalysis textare prepared for the benefit of athe billmembers orof resolutionthe orGeneral aAssembly, sectionsolely offor apurposes billof orinformation, resolutionsummarization isand new,explanation itand isdo not LCOrepresent No.the intent of the General Assembly or either chamber thereof for any purpose.

3795In 2general, fiscal impacts are based upon a variety of 2informational 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 22 $ FY 23 $ Labor Dept.

GF - Potential Up to Up to Cost 113,075 114,905 State Comptroller - Fringe GF - Potential Up to Up to Benefits1 Cost 46,700 47,456 Social Services, Dept.;

GF - Potential See Below See Below Department of Developmental Services Note:

GF=General Fund Municipal Impact:

None Explanation The bill requires fiscal intermediaries providing payroll services for state-funded personal care attendants (PCAs) to pay a fine of $100 per day for violations of the payroll-related requirements established under the bill.

To the extent the fiscal intermediary experiences increased cost to meet the requirements of the bill, the state contract with the fiscal intermediary may be adjusted to reflect such increases.

The Department of Social Services and the Department of Developmental Services support certain individuals, who are enrolled in a Home and Community-Based Medicaid waiver, with funding for PCAs.

The bill may also result in a potential federal revenue loss to the 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 41.3% of payroll in FY 22 and FY 23.

sSB942 / File No.

219 3 sSB942 File No.

219 extent the bill's provisions conflict with Medicaid waiver requirements.

There is a cost to the Department of Labor (DOL) the extent that the agency would have to investigate and hold hearings on potential violations.