OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-426

AN ACT CONCERNING EMPLOYEE ONLINE PRIVACY.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 16 $

FY 17 $

Attorney General

GF - Potential Cost

Zero to 10,000

Zero to 10,000

Labor Dept.

GF - Potential Revenue Gain

Up to 3,750

Up to 10,000

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill prohibits certain actions regarding employers requiring access to personal on-line accounts, and establishes civil penalties of up to $500 for initial violations and up to $1,000 for subsequent violations. This results in a potential revenue gain of up to $3,750 in FY 16 and up to $10,000 annually thereafter, and a potential cost to the Office of the Attorney General (OAG) of zero to $10,000 annually beginning in FY 16.

The bill allows an employee to file a complaint with the Labor Commissioner, and requires the Department of Labor (DOL) to investigate any complaint. It allows DOL to levy a penalty of $25 (job applicant) or $500 (employee) for initial violations and $500 (job applicant) or $1,000 (employee) for subsequent violations. It is anticipated that there will be fewer than 10 violations annually, resulting in a revenue gain of up to $3,750 in FY 16 and up to $10,000 annually thereafter.

The Labor Commissioner may request OAG to bring an action in Superior Court to recover any penalties established under the bill. The potential fiscal impact to OAG is a cost of zero to $10,000 annually beginning in FY 16 for potential litigation costs related to the recovery of any such penalties.

There is no impact to the Judicial Department from allowing any aggrieved party to appeal to the Superior Court. The number of appeals is not anticipated to be great enough to need additional resources. The court system disposes of over 400,000 cases annually.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.