Legislative Affairs
Legislative Update; week 3
Senate Committee presses Commissioner of Labor for Single Definition of Independent Contractor
The Senate Committee on Economic Development, Housing and General Affairs looked at bill S.146, a bill that would require the commissioner of the Vermont Department of Labor to formulate a new, single definition of independent contractor for the purpose of workers compensation and unemployment compensation statutes. Bill sponsor Sen. Peter Galbraith, D-Windham, told the committee that a single definition, along with a workable test for determining independent contractor status, is necessary to provide clarity to employers and should result in greater compliance. Although the committee is unlikely to endorse such a broad delegation of authority to the commissioner, it intends to spend time in the coming weeks examining the definition of independent contractor.
The committee also took testimony this week on a draft bill that proposes a number of small changes to the workers compensation and unemployment compensation statutes. Among other provisions, the bill would penalize employers for non-compliance with unemployment compensation requirements by prohibiting them from contracting with the state for up to three years following a determination of non-compliance. The bill also provides new measures to prevent retaliation against employees who lodge complaints with the Department of Labor regarding violations of labor statutes. Additionally, the bill grants the Department of Labor new authority to enter and inspect work sites to investigate alleged violations of those laws.
The Associated General Contractors met with the Commissioner of Labor and other organizations to encourage DOL to utilize a registry for Independent Contractors and to require them to carry workers compensation just like general and subcontractors are required to carry. We are hoping over the next few weeks that we are able to come to an agreement with the commissioner and other groups and push forward with this issue finally.
Healthcare exchange discussion and Governor Shumlins recommendations
The House Health Care Committee continues to educate themselves on the implementation of the federally mandated Health Care Exchange. The exchange is a marketplace for purchasing insurance which is anticipated to begin in 2014. There still are many questions in regards to the exchange and Governor Shumlins administration presented their recommendations for outstanding questions on this implementation including a recommendation that all businesses with 100 or fewer employees access the Exchange. There is still unanswered questions about the exclusion of association plans and limitations to insurance products being sold outside of the Exchange, along with the need to discuss the essential health benefit package that will be offered and whether or not bronze and catastrophic plans will be sold.
Governor Shumlins Administration recommendations for the implementation of the Exchange through H.559 which focuses on several areas that will impact the purchasing of insurance in 2014. Their recommendations are as follows: " To force small businesses into an uncertain market by requiring employers with 100 or less employees to purchase on the Exchange " The individual and small group market be merged into one risk pool which will likely increasing costs on businesses " Restricting plans to only the Exchange which, and not outside this market, allowing fewer options for businesses
There are still many areas that need to be addressed which includes the benefit package and whether or not the bronze level of insurance allowed under federal law will be available to those purchasing insurance on the Vermont Exchange. This bronze level would allow for more options including the popular Health Savings Accounts. Answers are still needed on many questions which AGC/VT will continue to monitor and educate our members.
Committee Considers Bill to Allow for Workers Compensation Debit Card Payments
The House Commerce Committee took testimony this week on a bill, H.552, that would allow workers compensation carriers to make temporary payments to claimants by debit cards. The process would be voluntary for claimants and transaction charges would be limited. The bill is modeled after a payroll card bill that was passed by the legislature several years ago.
The bill has strong support within the committee. Members have requested additional information about the fees that might be imposed. Despite some misgivings about the bill by organized labor, the committee is likely to pass the bill within the next few weeks.
Date Posted: January 23, 2012
