EMPLOYMENT LEGISLATION SUMMARY 2005 SESSION CONNECTICUT GENERAL - - PDF document

EMPLOYMENT LEGISLATION SUMMARY

2005 SESSION CONNECTICUT GENERAL ASSEMBLY

In its 2005 session, the General Assembly passed a number

• f new laws affecting Employers. The following material

summarizes these new laws, but the specific provisions should be reviewed in specific situations. These new statutes are available online in full text at ftp://159.247.160.79/acts/Pa/ but we will be happy to send you copies of any of these new Public Acts as you request. Civil Unions Public Act 05-10 authorizes same-sex couples to enter into civil unions. This legislation grants to such couples the same legal benefits, protections and responsibilities as married couples, and establishes eligibility, application and licensing

• criteria. It also specifies who can perform civil unions and

establishes record-keeping requirements. By incorporating civil unions by reference into most statutes within the fol- lowing categories that use or define terms indicating a spou- sal relationship, it extends to civil union couples rights pro- vided by such statutes, as well as related administrative regu- lations, court rules, policy and common law: 1. Family law, including marriage, divorce, and sup- port; 2. Real and personal property laws; 3. State and municipal taxation; 4. Probate courts and procedures; 5. Group insurance for government employees (but not private-sector employees); 6. Family leave benefits; 7. Protection against discrimination based on marital status; 8. Workers’ compensation; 9. Emergency and non-emergency medical care/treat- ment, hospital visitation, authority to act in matters affecting family members;

• 10. Vital records and absentee voting procedures.

The law does not incorporate civil unions by reference into the statutes regarding marriage procedures and formalities. Rather, as noted, it includes new procedures and formalities for applicants seeking civil unions. The Act becomes effec- tive October 1, 2005. Minimum Wage to Increase Over Next Two Years Public Act No. 05-32 increases the state’s minimum wage requirement from the current $7.10 per hour as follows: ef- fective January 1, 2006 the minimum hourly wage will be $7.40 per hour; effective January 1, 2007 the minimum hourly wage will be $7.65 per hour. This Act is effective

• n October 1, 2005.

Notice Period Pay (State Employees) Public Act 05-30 pertains to state employees and amends

• Conn. Gen. Stat. §5-240. It limits the amount of “notice pe-

riod or any other separation pay” of a dismissed state em- ployee to (1) the rate of the employee’s pay at the time of the dismissal, and (2) a maximum of two weeks, or the notice period (if any) provided in an applicable collective bargaining

• agreement. Notice period pay is the pay the employee re-

ceives from the notice of separation to the last day on the

• job. This Act is effective October 1, 2005.

Unemployment Compensation Alternative Base Period An unemployment claimant’s regular base period, used to determine possible benefits, is the first four of the five most recently completed calendar quarters prior to the one in which the claimant files a claim. Under current law there has been a temporary alternative base period available for claimants who would not qualify for benefits under the regular base period. Public Act 05-34 extends a sunset provision for the alterna- tive base period from December 31, 2005 until December 31, 2007. The Act is effective October 1, 2005. Reporting Requirements on Prevailing Wage Projects Public Act 05-50 specifies that the state’s prevailing wage law applies to people doing the work of mechanics, laborers,

• r workers on prevailing wage projects. This change to prior

law means that these employees will be paid for the type of work they do whether or not they are independent contrac-

• tors. Current law covers any mechanic, laborer or worker

who is employed on the project. The Act changes the word “employee” to “person” in the preexisting statute to cover

any person doing work covered by the prevailing wage law. However, others involved on the project, besides mechan- ics, laborers or workers, such as architects and managers, are not covered. This Act becomes effective on October 1, 2005. New Protections for the Unemployment Compensation Experience Tax System Public Act 05-85 prohibits a person or business that buys or acquires an employer solely (or primarily) to obtain its un- employment tax experience rating from actually getting that employer’s lower tax rate. It also prohibits transferring em- ployees or business from one employer to another employer under the same ownership or control in order to obtain a lower unemployment tax rate. This law establishes penalties, including fines and possible prison time, and an increase in the business’ unemployment tax rate. The act will be inter- preted to comply with federal law requiring state unemploy- ment statutes to prohibit merger, acquisition, restructuring

• r workforce “shifting” that is intended to avoid unemploy-

ment taxes. The Act becomes effective October 1, 2005 and applies to tax years beginning on or after January 1, 2006. Restaurant Safety Public Act 05-134 requires food service establishments (places where food is prepared/intended for individual con- sumption), other than catering establishments and itinerant vendors, to post a sign not later than October 1, 2005 that describes ways to recognize and procedures to follow if a patron is choking. The sign must be posted conspicuously where operators and employees can see it and also requires

• perators and their employees in these establishments to be-

come familiar with the sign’s contents. Effective upon pas- sage. Prohibition on Use of Hand Held Mobile Phones by Motor Vehicle Operators Public Act 05-220 prohibits a driver from using a mobile telephone as defined by the Act (including cellular phones), and any other “mobile electronic device” (including any hand- held or portable electronic equipment capable of providing data communication between two or more persons, such as text messaging devices, pagers, personal digital assistants, etc.) other than a hands-free telephone, while the vehicle is

• moving. Violations are punishable by a fine of up to $100.

The Act also requires a fine whenever a motor vehicle driver commits a moving violation while engaged in any non-driv- ing related activity that interferes with the safe operation of the vehicle. There are exceptions to the mobile telephone/ mobile electronic device prohibition, for example, circum- stances in which the sole reason for using the mobile tele- phone or device is to deal with an emergency and the call is to an emergency response operator, hospital, ambulance com- pany, doctor’s office, police or fire department. The Act is effective October 1, 2005. Protection for Sales Representatives Commissions Public Act 05-166 requires a principal to pay a sales repre- sentative, when the sales representative’s contract terminates and the business relationship between the sales representa- tive and principal ends, (1) all commissions due under the contract as of the termination effective date, by the later of the due date in the contract or 30 days after the termination date, and (2) all commissions that become due after the ef- fective date of the termination, by the date specified in the contract, but not later than 30 days after they become due under that contract. For purposes of this Act “commissions” are the compensa- tion that accrues to a sales representative at a percentage of the amount of the sale, orders or profits or any other agreed upon compensation method, including fees for services and

• retainers. The law gives sales representatives the right to sue

in certain cases and specifies that its provisions are in addi- tion to any other legal remedies that may be available. Also, this Act says that a sales representative’s acceptance of a partial commission from a principal does not constitute a release by the representative of any other commissions due unless the payment is pursuant to a final and binding written settlement agreement and release. Full release of all commis- sions claimed or owed by a sales representative as a condi- tion for payment of a partial commission is void. Note: this law does not apply to an insurance producer, an insurer or a licensed real estate person who has a claim for a real estate commission against a real estate broker with whom the salesperson is associated. Effective upon passage. Strike Contingency Plan Requirement for Health Care Institutions Under law health care institutions notified by a labor union that its employees intend to strike must file a contingency plan with the health commissioner. Public Act 05-172 will require that such a plan be filed no later than five days before the scheduled strike, rather than immediately upon receiving the strike notice. The Commissioner of the Department of Public Health may issue a summary order to any nursing home failing to file a contingency plan to comply with this law within the specified time. The order must require the nursing home to comply immediately and file a plan that meets DPH regulations (see below), and noncompliance can result in civil penalties up to $10,000 for each day of noncompli- ance. DPH must adopt regulations (1) establishing requirements for a strike contingency plan, including documentation that the health care institution has arranged for adequate staffing, security, food, pharmaceuticals and other essential supplies and services for patients’ needs if the strike occurs; and (2) imposing the civil penalties under the act. This act is effec- tive October 1, 2005.

Revisions to the Second Injury Fund Statutes Public Act 05-199 makes changes in the statutes governing the Second Injury Fund, the state-run Workers’ Compensa- tion fund that the state Treasurer administers. It will exempt the fund from liability in certain cases and reduce the fund’s potential liability by prohibiting retroactive claims older than two years from the date on which an employer or its insurer paid benefits. It also changes the method of assessing em- ployers for fund liabilities; authorizes the Treasurer to audit employers and insurers for requested information and any fund payment due; allows penalties of 15% for insurers and employers who fail to pay their fund assessment or surcharge (including 6% annual interest on unpaid assessments and sur- charges); and allows Workers’ Compensation Commission- ers and the Treasurer to enter into settlements with claim- ants either before or after an award against their employer. Effective July 1, 2006. Municipal Post-Employment Health and Life Benefit Systems Public Act 05-202 expressly allows municipalities to estab- lish by ordinance, and to finance and maintain post-employ- ment health and life benefit plans and other types of post- employment benefits (“OPEB”) for former municipal offi- cials and employees and their beneficiaries. OPEBs are ben- efits other than pensions and can include vision, dental, life insurance or long-term care benefits. The law will not invali- date any municipal post-employment health or life benefit system established before its effective date of 10/01/2005. It extends to OPEBs existing (1) requirements for periodic ac- tuarial evaluations of municipal pension systems, (2) prohi- bitions against enacting ordinances or acts altering pension systems until the municipal legislative body asks for and re- ceives a qualified estimate from its actuary, and (3) require- ments for revised actuarial evaluations within six months after adoption of any increase in system benefits, unless periodic evaluation is due within one year after adoption. This con- forms to GASB Statement No. 45 regarding employer re- porting for OPEB systems. Effective October 1, 2005. Stress Related Benefits for Police Officers In addition to provisions prohibiting the state from reducing a state retiree’s disability retirement benefit by the amount of attorney’s fees the retiree incurs to obtain Workers’ Com- pensation or federal Social Security disability benefits, Pub- lic Act 05-208 expands Workers’ Compensation coverage for a police officer in certain cases by allowing claims for mental and emotional injuries. The Act will permit such claims in cases where a police officer has used deadly force or is the target of the attempted use of deadly force while in the line of duty. The officer subjected to attempted deadly force must reasonably believe he was at risk of physical injury from its use. Under current law mental or emotional injury claims are compensable for police (and any other employee)

• nly if they arise out of a physical injury. Employees eligible

for potential compensation under this law may only receive treatment by a practicing psychologist or psychiatrist on an approved list established by the Workers’ Compensation Commission Chair. Effective on July 1, 2005.