Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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LCO No.: 8569

File Copy No.: 981

House Calendar No.: 109

OFA Fiscal Note

State Impact:

Agency Affected


FY 10 $

FY 11 $

Labor Dept.

GF - Potential Cost

58, 450

116, 900

Comptroller Misc. Accounts (Fringe Benefits) 1

GF - Potential Cost

14, 850

29, 700

Various State Agencies

Various - Cost

See Below

See Below

Labor Dept.

GF - Revenue Gain

Potential Minimal

Potential Minimal

Note: GF=General Fund

Municipal Impact:



FY 10 $

FY 11 $

Various Municipalities


See Below

See Below


The amendment strikes the underlying bill and its associated fiscal impact.

The amendment requires employers with 50 or more employees to provide their employees, with certain exemptions, with paid sick leave. The amendment does not cover 1) day and temporary workers, and 2) certain state college and university employees, including part-time or adjunct faculty members and educational assistants. Eligible employees can accrue up to 32 hours of paid sick leave in calendar year 2010 and a maximum of 40 hours in calendar year 2011 and each year thereafter.

It is not known how many various state and municipal employees would be impacted by this amendment; 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 various state agencies 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

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 amendment. This is expected to increase the number of complaints regarding wage and hour information and may require an additional wage investigator (annual salary of approximately $49, 500 and fringe benefits of $12, 600) 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 amendment and may require an additional staff attorney (annual average salary of approximately $67, 400 and fringe benefits of $17, 100) .

The amendment specifies that the Labor Commissioner implement the provisions of the amendment within available appropriations. With passage of the amendment, the Department of Labor would either (1) re-allocate existing funding for this purpose from another program; (2) incur additional costs; or (3) delay or not implement this program due to lack of funding.

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 amendment could be accommodated by the Judicial Department and the Office of the Attorney General without requiring additional resources.

The amendment could also result in a minimal revenue gain. Employers who violate Sections 2 to 5 of the amendment will be liable to the Department of Labor for a civil penalty of $600 for each violation.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does 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.

1 The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller on an actual cost basis. The following is provided for estimated costs associated with additional personnel. The estimated non-pension fringe benefit rate as a percentage of payroll is 25.43%. Fringe benefit costs for new positions do not initially include pension costs as the state's pension contribution is based upon the 6/30/08 actuarial valuation for the State Employees Retirement System (SERS) which certifies the contribution for FY 10 and FY 11. Therefore, new positions will not impact the state's pension contribution until FY 12 after the next scheduled certification on 6/30/2010.

2 $15 hourly wage x 20 paid sick leave hours earned = $300.