SB 421 — AN ACT CONCERNING STANDARD WAGES.

Senate General Assembly SubstituteFile Bill No.

421369 February Session, 2022 ANSubstitute ACTSenate CONCERNINGBill STANDARDNo. WAGES.

421 Senate, April 7, 2022 The Committee on Labor and Public Employees reported through SEN.

KUSHNER of the 24th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING STANDARD WAGES.

(4) "building, property or equipment service" means any janitorial,sSB421 cleaning,/ maintenance,File securityNo. or related service;

(5)369 "prevailing1 ratesSB421 ofFile wages" means the hourly wages paid for work performed within the city of Hartford under the collective bargaining agreement covering the largest number of hourly nonsupervisory employees employed within Hartford County in each classification established by the Labor Commissioner under subsection (e) of this LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00421-R01 of 8 SB.docx Substitute Bill No.

421369 section,janitorial, providedcleaning, themaintenance, collectivesecurity bargainingor agreementrelated coversservice; no less than five hundred employees in the classification;

(5) "prevailing rate of wages" means the hourly wages paid for work performed within the city of Hartford under the collective bargaining agreement covering the largest number of hourly nonsupervisory employees employed within Hartford County in each classification established by the Labor Commissioner under subsection (e) of this section, provided the collective bargaining agreement covers no less than five hundred employees in the classification;

and (9) "paid leave" meanssSB421 vacation,/ holidayFile andNo. personal leave, other than leave provided by federal, state or local law.

(b)369 On2 andsSB421 afterFile July 1, [2000] 2022, the wages paid on an hourly basis and paid leave provided to any employee of a required employer in the provision of food, building, property or equipment services provided to LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00422 of 8 R01-SB.docx } Substitute Bill No.

421369 themeans statevacation, pursuantholiday toand apersonal contractleave, orother agreement with the state or any state agent, shall be at a rate not less than theleave standardprovided rate determined by thefederal, Laborstate Commissioneror pursuantlocal tolaw. subsection (g) of this section.

(b) On and after July 1, [2000] 2022, the wages paid on an hourly basis and paid leave provided to any employee of a required employer in the provision of food, building, property or equipment services provided to the state pursuant to a contract or agreement with the state or any state agent, shall be at a rate not less than the standard rate determined by the Labor Commissioner pursuant to subsection (g) of this section.

(e) For the purpose of predetermining the standard rate of covered wages on an hourly basis and the standard rate for paid leave, the Labor Commissioner shall establish classificationsfor all hourly nonsupervisory employees based on the applicable occupation codes and titles set forth in the federal Register of Wage Determinations under the Service Contract Act of 1965, 41 USC [351] 6701, et seq., providedthe Labor Commissioner shall classify any individual employed on or before July 1, 2009, as a grounds maintenance laborer or laborer as a janitor, and shall classify any individual hired after July 1, 2009, performingsSB421 the/ dutyFile ofNo. grounds maintenance laborer, laborer or janitor as a light cleaner, heavy cleaner, furniture handler or window cleaner, as appropriate.

The369 Labor3 CommissionersSB421 shallFile then determine the standard rate of wages for each classification of hourly nonsupervisory employees which shall be (1) the prevailing rate of wages paid to LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-004213 of 8 R01-SB.docx } Substitute Bill No.

421369 employeesperforming in each classification, or if there is no such prevailing rate of wages, the minimumduty hourly wages set forth in the federal Register of Wagegrounds Determinationsmaintenance underlaborer, thelaborer Service Contract Act, plus (2) the prevailing rate of benefits paid to employees in each classification, or ifjanitor thereas is no such prevailing rate of benefits, a thirtylight percleaner, centheavy surchargecleaner, onfurniture thehandler amount determined in subdivision (1) of this subsection to cover the cost of any health, welfare and retirement benefits, other than those otherwise required by federal, state or localwindow law,cleaner, or,as ifappropriate. no such benefits are provided to the employees, an amount equal to thirty per cent of the amount determined in subdivision (1) of this section, which shall be paid directly to the employees.

The Labor Commissioner shall then determine the standard rate of wages for each classification of hourly nonsupervisory employees which shall be (1) the prevailing rate of wages paid to employees in each classification, or if there is no such prevailing rate of wages, the minimum hourly wages set forth in the federal Register of Wage Determinations under the Service Contract Act, plus (2) the prevailing rate of benefits paid to employees in each classification, or if there is no such prevailing rate of benefits, a thirty per cent surcharge on the amount determined in subdivision (1) of this subsection to cover the cost of any health, welfare and retirement benefits, other than those otherwise required by federal, state or local law, or, if no such benefits are provided to the employees, an amount equal to thirty per cent of the amount determined in subdivision (1) of this section, which shall be paid directly to the employees.

(g)sSB421 The/ LaborFile Commissioner shall, in accordance with subsection (e) of this section, determine the standard rate of wages for each classification on an hourly basis and paid leave where any covered LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00424 of 8 R01-SB.docx } Substitute Bill No.

421369 services4 aresSB421 toFile beNo. provided, and the state agent empowered to let such contract shall contact the Labor Commissioner at least ten days prior to the date such contract will be advertised for bid, to ascertain the standard rate of wages and paid leave and shall include the standard rate of wages on an hourly basis and paid leave for all classifications of employment intheproposalfor thecontract.The standardrate ofwages on an hourly basis and paid leave shall, at all times, be considered the minimum rate for the classification for which it was established.

369 (g) The Labor Commissioner shall, in accordance with subsection (e) of this section, determine the standard rate of wages for each classification on an hourly basis and paid leave where any covered services are to be provided, and the state agent empowered to let such contract shall contact the Labor Commissioner at least ten days prior to the date such contract will be advertised for bid, to ascertain the standard rate of wages and paid leave and shall include the standard rate of wages on an hourly basis and paid leave for all classifications of employment intheproposalfor thecontract.The standardrate ofwages on an hourly basis and paid leave shall, at all times, be considered the minimum rate for the classification for which it was established.

(i) Each required employer subject to the provisions of this section shall (1) keep, maintain and preserve such records relating to the wages andsSB421 hours/ workedFile and paid leave taken by each employee and a schedule of the occupation or work classification at which each person LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00425 of 8 R01-SB.docx } Substitute Bill No.

421369 is5 employedsSB421 duringFile eachNo. work day and week in such manner and form as the Labor Commissioner establishes to assure the proper payments and leave due to such employees, [and] (2) annually or upon written request, submit to the contracting state agent a certified payroll which shall consist of a complete copy of such records accompanied by a statement signed by the employer which indicates that (A) such records are correct, (B) the rate of wages paid to each employee is not less than the standard rate of wages required by this section, (C) such employer has complied with the provisions of this section, [and] (D) such employer is aware that filing a certified payroll which it knows to be false is a class D felony for which such employer may be fined not more than five thousand dollars or imprisoned not more than five years, or both, and (E) the rate of paid leave offered to each employee is not less than the standard rate of paid leave required by this section, and (3) not later than the first day upon which work is required to be performed under the contract, and for the duration of the contract, post in a prominent and accessible place a poster stating (A) the standard rate of wages and paid leave owed to employees under this section, (B) employee rights and remedies for a violation of this section, and (C) the contact information of the Labor Commissioner.

369 and hours worked and paid leave taken by each employee and a schedule of the occupation or work classification at which each person is employed during each work day and week in such manner and form as the Labor Commissioner establishes to assure the proper payments and leave due to such employees, [and] (2) annually or upon written request, submit to the contracting state agent a certified payroll which shall consist of a complete copy of such records accompanied by a statement signed by the employer which indicates that (A) such records are correct, (B) the rate of wages paid to each employee is not less than the standard rate of wages required by this section, (C) such employer has complied with the provisions of this section, [and] (D) such employer is aware that filing a certified payroll which it knows to be false is a class D felony for which such employer may be fined not more than five thousand dollars or imprisoned not more than five years, or both, and (E) the rate of paid leave offered to each employee is not less than the standard rate of paid leave required by this section, and (3) not later than the first day upon which work is required to be performed under the contract, and for the duration of the contract, post in a prominent and accessible place a poster stating (A) the standard rate of wages and paid leave owed to employees under this section, (B) employee rights and remedies for a violation of this section, and (C) the contact information of the Labor Commissioner.

Any person who files a false certified payroll in violation of subdivision (2) of this subsection shall be guilty of a class D felony for which such person may be fined not more thansSB421 five/ thousandFile dollarsNo. or imprisoned not more than five years, or both.

LCO369 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-004266 ofsSB421 8File R01-SB.docx } Substitute Bill No.

421369 (j)than Thisfive sectionthousand shalldollars not apply to contracts, agreements or grantsimprisoned which do not exceedmore forty-ninethan thousandfive nineyears, hundredor ninety-nineboth. dollars per annum.

(j) This section shall not apply to contracts, agreements or grants which do not exceed forty-nine thousand nine hundred ninety-nine dollars per annum.

The Labor Commissioner, the Director of Wage and Workplace Standards and wage enforcement agents of the Labor Department shall have power to enter, during usual business hours, the place of business or employment of any employer to determine compliance withthissection,andforwiththissection,andforsuchpurposemayexaminepayroll suchpurposemayexaminepayroll and other records and interview employees, call hearings, administer oaths, take testimony under oath and take depositions in the manner provided by sections 52-148a to 52-148e, inclusive.

(l) Notwithstanding subsection (j) of this section, any employer that payssSB421 the/ stateFile for a franchise to provide food preparation or service, or both, for the state shall be required to certify that the wages and benefits LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00427 of 8 R01-SB.docx } Substitute Bill No.

421369 paid7 andsSB421 paidFile leaveNo. provided to its employees are not less than the standard rate established pursuant to this section, provided, if no prevailing rate of wages or benefits was in effect at the time the state entered into a franchise agreement, then the employer shall not be required to pay the prevailing rate of wages or benefits or provide paid leave during thelife oftheagreement, unlesstheagreement isamended, extended or renewed.

369 pays the state for a franchise to provide food preparation or service, or both, for the state shall be required to certify that the wages and benefits paid and paid leave provided to its employees are not less than the standard rate established pursuant to this section, provided, if no prevailing rate of wages or benefits was in effect at the time the state entered into a franchise agreement, then the employer shall not be required to pay the prevailing rate of wages or benefits or provide paid leave during thelife oftheagreement, unlesstheagreement isamended, extended or renewed.

-LCO LCOsSB421 {\\PRDFS1\SCOUSERS\FORZANOF\WS\2022SB-00421-8/ ofFile 8No. R01-SB.docx }

369 8 sSB421 File No.

369 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 23 $ FY 24 $ Resources of the General Fund GF - Potential Minimal Minimal Revenue Gain Note:

GF=General Fund Municipal Impact:

None Explanation The bill, which requires contractors covered by the standard wage law to offer a standard rate of paid leave and expands associated civil penalties for violations, results in a potential cost to the state and a potential minimal revenue gain from civil penalties to the extent there are violations found.