OLR Bill Analysis

sSB 80 (File 47, as amended by Senate “A” and House “A”)*

AN ACT CONCERNING ELECTRONIC UNEMPLOYMENT COMPENSATION PAYMENTS.

SUMMARY:

This bill requires all employers with at least 100 employees, rather than at least 250, who pay unemployment compensation taxes or make payments in lieu of such taxes to make the payments electronically.

It also expands the exception in HB 5521, as amended by House “A” and “B,” to a ban prohibiting employers or their agents or representatives from requiring an employee or prospective employee to consent to the creation of a credit report as a condition of employment. Under HB 5521, there is an exception when the credit report is substantially related to the person's job or potential job. This bill expands the exception to include any job that is a “position of public trust. ” “Position of public trust” is not defined in the bill or in statute.

*Senate Amendment “A” makes a technical change.

*House Amendment “A” amended HB 5521, as amended by House “A” and “B”.

EFFECTIVE DATE: January 1, 2010, except expanding the exception on the credit report ban is October 1, 2009.

BACKGROUND

Nonprofits and Municipalities

By law, some employers, such as nonprofits and municipalities, are given the option of (1) paying unemployment taxes or (2) reimbursing the unemployment compensation fund with payments in lieu of taxes to cover the amount of benefits paid to the nonprofits' or municipalities' former employees.

COMMITTEE ACTION

Labor and Public Employees Committee

Joint Favorable Substitute

Finance, Revenue and Bonding Committee

Joint Favorable