Labor and Public Employees Committee
Insurance and Real Estate Committee
AN ACT CONCERNING WORKERS' COMPENSATION INSURANCE AND SOLE PROPRIETORS
SUMMARY: Before the state or municipalities enter into a contract to build or renovate a public works project, the law requires the parties to the contract to prove that they have complied with workers' compensation insurance and self-insurance requirements and do not owe payments to the Second Injury Fund (a fund that provides workers' compensation coverage to workers whose employers failed to do so). This act exempts sole proprietors from this requirement if the sole proprietor is a party to the contract and:
1. does not use a subcontractor to perform the contract;
2. is not acting as a principal employer (i. e. , does not have any employees);
3. has not opted in to the workers' compensation system; and
4. has liability insurance instead of workers' compensation insurance.
EFFECTIVE DATE: October 1, 2016
OLR Tracking: LRH; DC; VR; JM: tjo