PA 08-156—sSB 454

Labor and Public Employees Committee

AN ACT CONCERNING EMPLOYEE MISCLASSIFICATION

SUMMARY: This act establishes a permanent five-member enforcement commission to address the problem of employers avoiding state and federal labor, employment, and tax law obligations by misclassifying their employees. Misclassification often involves an employer treating employees as independent contractors in order to avoid paying workers' compensation insurance premiums and unemployment taxes.

The commission must meet at least four times a year and (1) coordinate the civil prosecution of state and federal employment law violations involving employee misclassification and (2) report any suspected violation of state criminal statutes to the chief state's attorney or the state's attorney serving the district where the violation allegedly occurred.

The commission members are the labor and revenue services commissioners, workers' compensation commission chairperson, attorney general, and chief state's attorney, or their designees. By February 1, 2010, and every year after that, the commission must report to the governor and the Labor and Public Employees Committee. The report must summarize the commission's actions for the previous year and include any administrative or legislative recommendations.

The act also creates an advisory board to advise the commission on job misclassification in the construction industry.

EFFECTIVE DATE: July 1, 2008

EMPLOYEE MISCLASSIFICATION ADVISORY BOARD

The act establishes a six-member advisory board to advise the commission on job misclassification in Connecticut's construction industry.

Advisory board members represent management and labor in the construction industry. Members must be appointed as follows:

1. the governor appoints two members, one representing labor and one representing management;

2. the House speaker appoints one representing labor;

3. the House minority leader appoints one representing management;

4. the Senate president pro tempore appoints one representing management; and

5. the Senate minority leader appoints one representing labor.

All appointments must be made by August 1, 2008. Members' terms are coterminous with the terms of the respective appointing authority, who must fill any vacancies. Members of the advisory board serve without compensation but, within available funds, are reimbursed for expenses necessarily incurred in performing their duties.

BACKGROUND

Related Public Act

PA 08-105 also creates a joint enforcement commission for the same purpose and with the same members as the one created by this act.

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