OLR Bill Analysis

SB 906 (File 65, as amended by Senate “A”)*

AN ACT CONCERNING DIRECT DEPOSIT OF WAGES.

SUMMARY:

This bill allows private and parochial schools to enter into a written agreement with their employees for a wage payment schedule that differs from the schedule otherwise required by law. The law generally requires employers to pay employees on a regular pay day that cannot be more than eight days after the last day counted in the pay period. It allows boards of education, the American School for the Deaf, the Connecticut Institute for the Blind, and the Newington Children's Hospital to negotiate different payment schedules. (Many boards of education negotiate under this provision to pay employees based on the calendar year rather than the 10-month school year.) The labor commissioner can also grant other pay schedule exceptions.

Under the bill, if the school stops operating before it pays all of the wages due to its employees the (1) agreement is null and void and (2) school is liable for paying all wages due the employees.

*Senate Amendment “A” replaces the original bill, which required an employer paying an employee's wages by direct deposit to electronically identify the deposit as wages.

EFFECTIVE DATE: Upon passage

COMMITTEE ACTION

Labor and Public Employees Committee

Joint Favorable

Yea

11

Nay

0

(03/07/2013)

Banks Committee

Joint Favorable

Yea

8

Nay

6

(04/17/2013)