OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sHB-5274

AN ACT CONCERNING UNEMPLOYED INDIVIDUALS AND DISCRIMINATORY HIRING PRACTICES.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Attorney General

GF - Potential Cost

Zero to 10,000

Zero to 10,000

Labor Dept.

GF - Potential Revenue Gain

Less than 5,000

Less than 5,000

Labor Dept.

GF - Potential Cost

Less than 1,000

Less than 1,000

Municipal Impact: None

Explanation

The bill prohibits various enumerated employment-related actions if they are based solely on a person's status as unemployed, and establishes a civil penalty of $500 for the first offense and $1,000 for subsequent offenses. This results in a cost of zero to $10,000 annually beginning in FY 15 to the Office of the Attorney General for potential litigation costs related to the recovery of penalties established under the bill, as well as a potential cost of less than $1,000 annually beginning in FY 15 to the Department of Labor (DOL) related to the administrative hearing process. This also results in a potential General Fund revenue gain of less than $5,000 annually beginning in FY 15 to DOL, which may levy the civil penalties established under the bill.

The actual cost and revenue gain associated with the bill are dependent on: 1) the number of complaints received and civil penalties levied by the Labor Commissioner, 2) whether any such penalties are appealed, and 3) whether the Attorney General brings action to recover any penalties levied. Based on the results of a similar law in New Jersey, it is anticipated that the number of violations and subsequent recoveries will be fewer than five in any given year.

Background

According to the New Jersey Department of Labor's Division of Wage and Hour Compliance, the Division has had one alleged violation since the law was passed in 2011. The assessment was appealed and is currently being upheld in the Superior Court Appellate Division pending a decision.

The Out Years

The annualized ongoing cost impact identified above would continue into the future subject to inflation. The annualized ongoing revenue impact identified above would remain constant into the future as penalty amounts are set by statute and are not subject to inflation.

Sources:

New Jersey Department of Labor Division of Wage and Hour Compliance