Workplace costs

(April 11, 2008) A strong economy requires a business climate that enables and encourages companies to grow and create jobs. Connecticut employers need the flexibility to best meet the needs of their employees – and at the same time, control costs so that they can stay competitive in a tough global economy. Unfortunately, employers in Connecticut are once again faced with many legislative proposals that will only increase their costs and make it harder to compete and create jobs.

Paid sick leave
SB-217 weakens Connecticut’s business climate by mandating a one-size-fits-all policy for all employers and eliminates employer flexibility to determine which time off policies work best for them. It does this by requiring all employers of 25 or more employees to provide a minimum amount of paid sick leave each year, regardless of their existing paid time off benefit structure, workforce demands or type of industry.

Increases workers’ comp costs
SB-64 undermines a key workers’ compensation system reform by allowing injured workers to receive benefits for scars occurring anywhere on the body and regardless of their impact on the person’s ability to earn a living. The proposal would expand workers’ compensation benefits beyond fiscally responsible levels and cause employers’ labor costs to significantly increase.

SB-255 undercuts a key workers’ compensation system reform by increasing discretionary benefits for injured workers up to the maximum allowable amount for any reason and regardless of the extent of injury. The Office of Fiscal Analysis estimates that this measure will cost the state between $1.3 and $4.3 million beginning in Year 2010 and costs to the private sector are estimated to be much more, at least $527 million in the first year alone. It would significantly increase employers’ labor costs by expanding Connecticut’s already fair and generous workers’ compensation benefits.

HB-5334 penalizes employers for challenging or questioning medical recommendations in workers compensation cases. This unfairly punishes employers for exercising rights guaranteed to them by law without justification.

HB-5626 undermines the exclusive remedy, no-fault principle upon which the workers’ compensation system is based by allowing claimants to take legal action against self-insured employers, third party administrators and insurers in certain circumstances. This would leave employers vulnerable to lawsuits for even trivial matters.