Legislative Affairs
Week nine...
Misclassification and Electrical Licensing required....
House Passes H.647, Misclassifications of Employees for Workers Compensation with a Stop-Work Order Embedded
The House of Representatives passed H.647, An act relating to misclassification of employees to lower premiums for workers compensation and unemployment compensation, by a voice vote last week. The bill as passed is considerably better than as introduced however, there is some pretty high penalties attached. Included in the bill is as follows:
1. If the Commissioner of Labor, or her appointee, finds after a hearing that the employer misclassifies (or isnt carrying workers compensation on an individual) the penalties and fines are increased to $100 a day for the first seven days and then $150 a day thereafter
2. If the Commissioner determines that an employer fails to comply with carrying workers compensation, the Commissioner shall order a stop-work which orders the employer to immediate cessation and shall be fined $250 per day per employee
3. Allows for an appeals process on the stop-work order
4. Establishes a prohibition from contracting, directly or indirectly, with the state or any of its subdivisions for up to three years
5. Stop-work order shall only pertain to the employer who has been found to be in noncompliance with the law
6. Creates an Insurance Compliance and Fraud Taskforce
7. Creates additional requirements and penalties which can be found on the following website:
http://www.leg.state.vt.us/docs/2010/journal/HJ100310.pdf#page=1
House Committee moves H.132, Residential Electrical Licenses to floor action
House Committee on General, Housing, and Military Affairs passed a bill which requires a licenses electrician on all homes except for an owner-occupied dwelling. The Associated General Contractors of Vermont and the Vermont Independent Electrical Contractors Association (VEICA) worked diligently on this bill. Due to much compromise on this bill, there is an exemption for renewable energy to obtain an S license. The Electrical Licensing board is required to establish an S license for renewable energy only on residential homes up to two dwellings. The House of Representatives will be debating this week on H. 132. To see the bill as proposed to the entire house, go to: http://www.leg.state.vt.us/docs/2010/calendar/hc100316.pdf
UI Agreement in Jeopardy as Labor Groups Oppose Reductions The Senate Finance Committee continued to take testimony this week from a number of groups regarding S.290, the bill constructed in the Senate Economic Development Committee which would restore solvency to the state's Unemployment Insurance Trust Fund. Among the groups testifying in opposition were the Teamsters Union, the Granite Cutters' Association, the AFL-CIO, Vermont Legal Aid, and the National Employment Law Project. These groups were generally opposed to reductions in benefits, focusing particularly on the change in the benefit amount from two quarters of wages to one reflecting four quarters. The groups also opposed the one-week waiting period and the provision disqualifying workers for misconduct. Meanwhile, business groups testified in favor of a balanced approach, recognizing that the taxable wage base would need to be increased over time to replenish the fund. However, they also strongly argued for benefit reductions to help balance the income and expenses generated from this program. Both groups were silent about the two tenths of one percent payroll tax that is also part of this bill as initially introduced. Senators Ann Cummings (D-Washington) and Mark MacDonald (D-Orange) appeared skeptical of the four quarter provision and the provision requiring a worker who is disqualified to pay back benefits paid in error. The Associated General Contractors of Vermont will continue to advocate for a balanced approach to fixing the Unemployment Insurance Trust Fund where the taxable wage base is increased over time while benefit reductions are achieved as well. The committee is expected to take further testimony next week.
Date Posted: March 15, 2010
