New Developments On 2 Big CT Bills: Minimum Wage, Family Leave

HARTFORD, CT — Increasing the minimum wage to $15 per hour and instituting paid family and medical leave are some of the top agenda items for Democratic state Senate and House leaders this session.

Details are still being ironed out, but the current framework for paid leave would be a 12 week cap per year with 100 percent of pay up to $1,000 per week. It would be financed entirely by employees through an automatic payroll deduction similar to social security, said State Rep. Robyn Porter. Currently it appears that deduction would be about .5 percent.

It will take a year for funds to build up before people can start taking leave. Porter pitched the leave plan as being business-friendly and a way to cut down on the costs of replacing and training employees.

Gov. Ned Lamont has previously expressed support for both measures and Democrats hold a majority in both the state House and Senate.

The plan for minimum wage would gradually increase to the $15 per hour mark, Porter said. Connecticut’s minimum wage is currently $10.10 per hour.

Related: Big Changes Proposed For CT's Car Tax

Democratic House and Senate caucuses are working to unify a number of bills that would get both groups in agreement.

“These are important quality of life and vital economic policies for our state,” said Senate President Pro Tempore Martin Looney. “The proposals outlined here will build upon the critical policy work we have accomplished in past years and will respond to the priorities of the people of our state.”

The leave law would allow employees to take care of a sick family member or a new baby without fear of losing a job or going deep into debt, said House Speaker Joe Aresimowicz.

“Helping to improve the lives of Connecticut’s working families is a priority for our caucuses, and issues such as our workforce pipeline, earned family leave and minimum wage are important parts of the equation,” Speaker of the House Joe Aresimowicz (D-Berlin/Southington) said.

Other legislative priorities for Democrats include early voting, a job training and workforce pipeline program, affordable prescription drug laws, supporting small businesses and programs to increase jobs and economic growth through energy efficiency and renewable energy initiatives.

Republican Senate Minority Leader Len Fasano said it would be important not to pass legislation that could slow down any economic expansion, especially since many predict a recession is in the near future, according to the CT Mirror.

How family leave compares

Several states recently passed or changed their medical and/or family leave laws. Each state has different levels of benefits, eligibility and ways the program is funded.

Massachusetts generally covers 20 weeks for medical leave and 12 weeks for family leave per year with a cap of 26 weeks between the two programs. It will have a $850 weekly benefit cap in 2021 and then 64 percent of the state’s average weekly wage for subsequent years, according to the Connecticut Office of Legislative Research. There is a sliding scale of percentage of pay depending on how much a person makes in comparison to the average wages in the state.

The total premium for the first year of the program is a .63 percent wage deduction. After that family leave premiums will be paid entirely by employees while medical leave is paid 40 percent by employees and 60 percent by employers with at least 25 employees.

Washington also bases benefits off of average weekly wages with a $1,000 weekly max for the program’s first year in 2020 and then 90 percent of the state’s average weekly wages after that. It includes 12 weeks of medical leave and 12 weeks of family leave per 52 weeks, but a maximum of 16 weeks between the two per 52 weeks.

Eligible employees must work for an employer with at least 50 employees.

It is funded by a .4 percent employee wage deduction for the first year. After that, employees bear the full funding cost for family leave and there is a split between employees and employers to fund medical leave, but employers with less than 50 employees are exempt.

For both states going forward there could be adjustments to keep the family and medical leave fund solvent.

New York State’s paid family leave laws changed at the beginning of 2019. Eligible employees can take 10 weeks to bond with a new baby, care for a family member with a serious health condition, or assist certain family members who are deployed abroad on active military service.

Employees taking paid family leave get 55 percent of their average weekly wage with a maximum benefit of $746.11 in 2019.

New York’s family leave is funded through employee payroll deductions. The 2019 deduction is .153 percent of gross wages per pay period with a maximum annual contribution of $107.97.

By 2021 eligible employees can take 12 weeks of leave at 67 percent of the employee’s average weekly wage, up to 67 percent of the statewide average weekly wage.

New Jersey is currently considering increasing their paid family leave program. Currently new parents or caregivers can receive up to six weeks of paid leave at two-thirds their normal pay rate with a cap of $633 per week, according to NJ.com. It is funded through payroll deductions with a maximum deduction of $27.52 per year.

The proposal that passed the legislature and heads to Gov. Phil Murphy would increase the leave period to 12 weeks and raise the benefit level up to 85 percent of normal pay with a cap of $859 per week. The bill would adjust the payroll deduction to be based on the first $131,000 in wages with a fluctuating rate depending on the year.

Image via CT Democratic Legislative Caucus