OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http: //www. cga. ct. gov/ofa
sSB-217
AN ACT MANDATING EMPLOYERS PROVIDE PAID SICK LEAVE TO EMPLOYEES.
OFA Fiscal Note
Agency Affected |
Fund-Effect |
FY 09 $ |
FY 10 $ |
Labor Dept. |
GF - Cost |
129,500 |
129,500 |
Labor Dept. |
GF - Revenue Gain |
Potential Minimal |
Potential Minimal |
Comptroller Misc. Accounts (Fringe Benefits)1 |
GF - Cost |
33,000 |
76,000 |
Various State Agencies |
Various - Cost |
See Below |
See Below |
Municipalities |
Effect |
FY 09 $ |
FY 10 $ |
Various Municipalities |
STATE MANDATE - Cost |
See Below |
See Below |
Explanation
The bill could result in a cost to the state. The bill requires employers with 25 or more employees to provide their employees with paid sick leave. Day and temporary workers are not covered under the bill. There are approximately 9,200 employers in both the public and private sectors and approximately 1. 3 million employees in Connecticut.
Employees may file a complaint with the Department of Labor if their employer violates any of the provisions of Sections 2 to 5 of the bill. This is expected to increase the number of complaints regarding wage and hour information and may require an additional wage investigator (annual salary of $54,500 and full fringe benefits totaling $32,000) in the Wage and Workplace Standards Division.
Currently, the department reviews approximately 100 cases annually for probable cause hearings regarding the Family Medical Leave Act, resulting in approximately 20 hearings per year. The number of probable cause hearings is expected to increase with the passage of the bill and may require an additional staff attorney (annual salary of $75,000 and full fringe benefits totaling $44,000).
The Labor Commissioner's decision to reward appropriate relief for a complaint may be appealed in Superior Court. Any administrative appeals under Section 4 of the bill could be accommodated by the Judicial Department and the Office of the Attorney General without requiring additional resources.
The bill could also result in a minimal revenue gain. Employers who violate Sections 2 to 6 of the bill will be liable to the Department of Labor for a civil penalty of $600 for each violation.
It is not known how many state and municipal employees would be impacted by this bill; however, full-time and certain part-time employees (typically those working 20 or more hours per week) currently receive paid sick leave. The fiscal impact to the state and municipalities is the cost of the paid sick leave benefit. For example, if a part-time employee earning $15 per hour accrues, and uses, 20 hours of paid sick leave in a year, the cost to the state or municipality for this one employee's benefit is $300. 2
The Out Years
The annualized ongoing fiscal impact identified above would continue into the future subject to the rate of complaints and violations.
1 The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller. The first year fringe benefit costs for new positions do not include pension costs. The estimated first year fringe benefit rate as a percentage of payroll is 25. 36%. The state's pension contribution is based upon the prior year's certification by the actuary for the State Employees Retirement System (SERS). The SERS fringe benefit rate is 33. 27%, which when combined with the rate for non-pension fringe benefits totals 58. 63%.
2 $15 hourly wage x 20 paid sick leave hours earned = $300.