Labor and Public Employees Committee

JOINT FAVORABLE REPORT

Bill No.:

SB-57

Title:

AN ACT CONCERNING THE DIRECT DEPOSIT OF WAGES.

Vote Date:

3/4/2014

Vote Action:

Joint Favorable

PH Date:

2/18/2014

File No.:

27

SPONSORS OF BILL:

Labor and Public Employees Committee

REASONS FOR BILL:

To identify direct deposits as wages avoiding undue financial hardship in the case of bank executions.

RESPONSE FROM ADMINISTRATION/AGENCY:

None submitted

NATURE AND SOURCES OF SUPPORT:

Lori Pelletier, Executive Secretary-Treasurer, Connecticut AFL-CIO supports the bill. The bill prevents workers from losing their exempt wages.

Attorney Sarah Porris supports the bill. The banks with this bill will receive the information that will allow them to identify certain deposits as wages. The bill does not change the way and execution is processed but does protect a persons' wages.

Raphael Podolsky, Legal Assistance Resource Center of Ct. testified in support of the bill. The bill does not impose any burden on either the banks or the employers. Most employers already electronically identify wages this just informs the banks if a direct deposit is for wages.

NATURE AND SOURCES OF OPPOSITION:

Eric Gjede, CBIA testified against the bill. This bill will put an added cost and technical burden on businesses. Employees can use pay stubs to demonstrate to the banks and creditors the origin of the funds in their accounts. Many employers do not have the required technology to make this change. We worry that because many employers within the state have pay systems out of state will stop offering electronic wage payments to Connecticut employees.

Reported by: Pamela Bianca

03/25/2014