OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

SB-913

AN ACT MANDATING EMPLOYERS PROVIDE PAID SICK LEAVE TO EMPLOYEES.

AMENDMENT

LCO No.: 6933

File Copy No.: 76

Senate Calendar No.: 97

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 12 $

FY 13 $

Department of Revenue Services

GF - Revenue Loss

See Below

See Below

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment establishes a credit against the Corporation Business and Personal Income Taxes equal to the full amount an employer is required to pay to an employee who is performing the work normally performed by an employee using sick leave as established under the bill as amended. This is estimated to result in a revenue loss of greater than $1.0 million annually beginning in FY 13.

As an example, the median hourly wage of food preparation workers in Connecticut is $10.94 according to the Department of Labor. If such an employee was scheduled to work an 8-hour shift but utilized sick leave as provided under the bill as amended, and this resulted in an unscheduled employee taking the shift, this would make the employer eligible for a tax credit of $87.52.

Sources:

Department of Labor Office of Research; 2010 Labor Market Information

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.