Labor and Public Employees Committee

JOINT FAVORABLE REPORT

Bill No.:

HB-5280

Title:

AN ACT CONCERNING EXECUTIVE EMPLOYEE COMPENSATION.

Vote Date:

3/11/2014

Vote Action:

Joint Favorable Substitute

PH Date:

2/27/2014

File No.:

88

SPONSORS OF BILL:

Labor and Public Employees

REASONS FOR BILL:

Corporations, who were able to pay their CEOs over 50 times the wages of average full-time workers, were eligible to apply for state assistance grants.

RESPONSE FROM ADMINISTRATION/AGENCY:

None Submitted

NATURE AND SOURCES OF SUPPORT:

Brian Anderson, Council 14, AFSCME

In his testimony, Mr Anderson said “The decline of the middle class is one of the biggest problems that our state and country face. This bill tries to do something about that.” Wages for most workers have been stagnant since 2001 and personal savings for the average family have been depleted while health care rates have risen and personal debt skyrocketed.

Matthew Brokman, Legislative Representataive of Council 4 AFSCME

He testified that this legislation would rebuild the middle class. Public opinion polls now find that the majority of Americans do not believe the “American Dream”, of a home/ family with their children having a better life then they did, will become a reality anymore no matter how hard they work. Corporations, who can afford to pay their CEOs enormous salaries, should be able to afford to be in business without asking for public assistance from taxpayers.

Todd G. Berch, CT AFL-CIO

Written testimony was submitted supporting this legislation.

NATURE AND SOURCES OF OPPOSITION:

Andy Markowski, CT State Director, National Federation of Independent Business (NFIB)

His testimony stated this was an economically dangerous bill and another example of state government meddling into operations of many CT employers. Penalizing certain employers by making them ineligible for tax credits of other state economic assistance based on an arbitrary threshold of average employee compensation is a dangerous precedent.

Eric. W. Gjede, Assistant Counsel, CBIA

Mr. Gjede cited a number of recent surveys that consistently ranked CT as one of the highest cost and least business-friendly states in the nation. This negative perception denies CT citizens many job opportunities. No other state has a law like this because it sends a counterproductive message and discourages businesses from moving to CT. He said we should be doing more to encourage business development , not removing the tax and financial incentives for locating here.

Reported by: Marie Knudsen

Date: March 27, 2014