OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-6914

AN ACT CONCERNING A MINIMUM WORKWEEK FOR PERSONS PERFORMING JANITORIAL OR BUILDING MAINTENANCE SERVICES.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 18 $

FY 19 $

Constituent Units of Higher Education

Various - Cost

5 million to 10 million

5 million to 10 million

Labor Dept.

GF - Potential Revenue Gain

5,000

5,000

Various State Agencies

Various - Cost

See Below

See Below

Note: Various=Various; GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 18 $

FY 19 $

Various Municipalities

STATE MANDATE - Cost

Potential

Potential

Explanation

The bill requires certain employers to provide a 30-hour minimum work week for employees performing maintenance work. This results in a cost to various state agencies, as well as a potential cost to municipalities.

The Department of Administrative Services (DAS) is currently responsible for about 10% of the square footage owned or leased by the state and has approximately 64 custodial contracts1 which could be affected by the bill. DAS is responsible for coordinating and paying for janitorial work and security at facilities it manages. To the extent that workers covered by the bill are not working 30 hours per week their hours would have to be increased resulting in a cost proportionate to the increase in hours. Other state agencies that have care and control over their own buildings would experience similar cost increases.

Currently, existing janitorial and security contracts do not specify the number of workers and hours worked at each location. Restructuring future contracts as a result of the bill's requirements will result in higher costs to state agencies as the vendors would likely pass along the costs associated with the increase in required hours in the form of higher fees.

The bill results in a cost ranging from $5 million to $10 million to the constituent units of higher education in FY 18 and each year thereafter. The constituent units employ students to handle some “janitorial work and building maintenance services” as defined in the bill. The students do not currently work a 30 hour week due to work-study program recommendations. This results in the constituent units having to replace the student workers with full-time employees. Additionally some constituent units operate Technical High School Apprentice Programs which would have to be discontinued as those students do not work a 30 hour week. The cost range above is calculated based on the amount currently paid to students and the amount which would be paid to full-time employees.

The bill specifies that complaints may be filed with the labor department. If the department finds an employer is in violation of the provisions of this bill, the employer will be fined up to $500 for the first offense and up to $1,000 for every subsequent expense. To the extent that complaints are heard and that violations are found, the fines would serve as a potential new source of revenue for the state. It is anticipated that there will be ten or fewer violations per year.

It is not known how many municipal maintainers would be affected by the bill. It is anticipated that most municipalities do not own a building which 1) is 100,000 square feet; and 2) is an office building. For those that do own such buildings, there is potential cost if any of their custodians do not currently work for 30 hours per week.

The Out Years

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

1 DAS has these contracts with The Alliance, an organization representing over 500 non-profits.