HB 7197 — AN ACT REQUIRING PAYCHECK TRANSPARENCY.

House of Representatives General Assembly RaisedFile Bill No.

7197525 January Session, 2025 LCOHouse Bill No.

59727197 ReferredHouse toof Representatives, April 3, 2025 The Committee on LABORLabor ANDand PUBLICPublic EMPLOYEESEmployees Introducedreported by:through REP.

(LAB)SANCHEZ, ANE. ACT REQUIRING PAYCHECK TRANSPARENCY.

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

AN ACT REQUIRING PAYCHECK TRANSPARENCY.

(b) If the record of hours is furnished electronically pursuant to subsection (a) of this section, the employer shall provide a means for LCOHB7197 5972/ 1File of 2 Raised Bill No.

7197525 each1 employeeHB7197 toFile securely,No. privately and conveniently access and print such record.

525 each employee to securely, privately and conveniently access and print such record.

Section 1 October 1, 2025 31-13a LAB Joint Favorable LCOHB7197 5972/ 2File ofNo. 2

525 2 HB7197 File No.

525 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:

None Municipal Impact:

None Explanation The bill, which requires employers to create a guide to help employees understand pay codes, does not result in any fiscal impact to the state or municipalities.

The Out Years State Impact:

None Municipal Impact:

None HB7197 / File No.

525 3 HB7197 File No.

525 OLR Bill Analysis HB 7197 AN ACT REQUIRING PAYCHECK TRANSPARENCY.

SUMMARY This bill requires employers to create a guide for their employees with the pay codes that the employer uses.

The guide must be posted on the employer’s website (in English, Spanish, and the most common other languages spoken by their employees) and explain the codes used for straight time, overtime, and any pay differentials (such as shift differentials, on-call pay, hazard pay,call-back pay, holiday or weekend pay, or geographical pay differentials).

The guide must also include contact information of the designated office or individual who will handle employee disputes regarding calculations of hours and pay differentials.

The bill also requires that an employer update the guide each time a new pay code is added.

And it requires that employers include a link to the guide on each record of hours given to an employee.

Under the bill, upon hire, an employer must also give a detailed explanation of therelevant pay codes to an employee for the employee’s position.

This detailed explanation must include a definition for each code.

EFFECTIVE DATE:

October 1, 2025 COMMITTEE ACTION Labor and Public Employees Committee Joint Favorable Yea 10 Nay 3 (03/18/2025) HB7197 / File No.

525 4