2008 session in review:

No major hit on labor costs, but concerns about 2009

(May 20, 2008) Current economic conditions are making it clear that everyone — businesses, households and government alike — have to control costs in order to keep running as effectively as possible. However, despite this economic reality, the Labor Committee, as it has done so often, continued to churn out cost-raising, anti-business proposals this year.

If the committee’s proposals had gained approval — and most didn’t — they would have increased costs just when employers could least afford it. Higher costs make it harder for employers to do business in Connecticut and compete in the marketplace.
 
Harmful committee proposals
Many measures would have hiked labor costs and imposed new mandates, administrative burdens and penalties on employers. Among the most harmful proposals this year were measures to:

• Create a new category of harassment in the workplace and expand employers’ liability for alleged actions (SB-371);
• Drastically increase the amount of workers’ compensation benefits available to employees at employers’expense (SB-64 and SB-255);
• Mandate employers to pay employees for time they hadn’t worked. (SB-217);
• Increase employer costs by eroding the basic, exclusive remedy principle of the workers’ compensation system (HB-5626);
• Unfairly punish employers for exercising their legal rights in workers’ compensation cases. (HB-5334); and 
• Penalize employers and insurers for delays in workers’ comp medical treatment, even when the delays were beyond their control (HB-5727).

2009 forecast
Fortunately, none of these measures was enacted this year. The same may not be true in next year’s session. A growing contingent of legislators lack business experience. In addition, highly visible advocacy groups such as public-sector labor unions plan to return to continue their push for many of these problematic measures.

CBIA will continue working with legislators to help them understand the importance of a strong economy.

For more information about labor and workplace issues, contact CBIA’s Kia Murrell at 860-244-1931 or kia.murrell@cbia.com.