OLR Bill Analysis

sHB 5460 (as amended by House "A")*

AN ACT CONCERNING MINIMUM EMPLOYEE WAGES FOR PROVIDERS OF STATE-CONTRACTED HUMAN SERVICES.

SUMMARY

This bill allows the Office of Policy and Management (OPM) secretary to allocate available FY 19 funds to increase the wages of certain employees who provide services to individuals with intellectual disabilities authorized to receive services and supports through the Department of Developmental Services. The increase applies to private providers of employment, day, and behavioral services and group home services. By December 1, 2018, the bill requires such providers to submit documentation to OPM that such funds will be used only for:

1. increasing the minimum wage paid to employees to at least $14.75 per hour by January 1, 2019 and

2. providing a wage increase (up to 5%) to employees earning between $14.76 and $30.00 per hour by January 1, 2019.

Additionally, OPM must reimburse the providers, within available appropriations, for the cost of employer taxes, increased benefits, and other costs associated with the wage increase provisions.

EFFECTIVE DATE: Upon passage

*House Amendment “A” replaces the underlying bill, which required the social services, children and families, developmental services, rehabilitative services, and mental health and addiction services commissioners, to adjust the rate methodology in contracts with private human services providers to proportionally increase salaries and wages of hourly employees to a $15 per hour minimum wage in FY 19.

COMMITTEE ACTION

Human Services Committee

Joint Favorable Substitute

Yea

19

Nay

0

(03/22/2018)

Appropriations Committee

Joint Favorable

Yea

29

Nay

23

(04/17/2018)