CT business group warns changes to workforce bill would raise costs, liability

A broad amendment to a major workforce bill proposed during the state’s current legislative session is drawing pushback from business leaders, who warn the expanded proposal could increase costs and legal risks for employers in the state.

House Bill 5003 originally focused on workforce development and working conditions, but was significantly broadened by a more than 100-page amendment filed in the House of Representatives this week. The changes add a range of labor-related provisions affecting industries from health care to construction.

The Connecticut River Valley Chamber of Commerce is among business groups urging lawmakers to reject the amendment, saying it would make the state less competitive and impose new mandates on employers.

In an “advocacy action alert” sent to its members, the chamber said the proposal “could have significant adverse, costly and unintended consequences for businesses, employees, taxpayers, cities and towns, and the state’s economy.”

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Among the provisions raising concern is a requirement that certain health care employers indemnify workers who are assaulted on the job for related financial losses. The amendment also expands a ban on employment-related promissory notes to cover all employers, regardless of size.

Also of concern is language that broadens “successor employer” rules, requiring new contractors in certain service industries to retain existing workers for a set period following a contract change. The chamber said that could limit flexibility for employers and increase labor costs.

Another provision would require employers with 100 or more workers to create and provide employees with detailed guides explaining company pay codes, including overtime and differential pay structures.

The amendment also includes contractor liability provisions that would hold general contractors responsible for unpaid wages owed by subcontractors on certain construction projects — even in cases where the contractor was not directly involved in the alleged violation. Business groups say that could expose companies to legal risk beyond their control.

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The Connecticut River Valley Chamber primarily serves members in Glastonbury, East Hartford, Hebron and Marlborough, but has business members in 42 municipalities in the state.

Chris Davis, vice president for public policy with the Connecticut Business & Industry Association, said the bill does include several positive workforce initiatives, including the adoption of regional workforce navigators to better connect students, schools and employers, expanded work‑based learning opportunities, and a working group to develop co‑instruction models that allow educators and private‑sector professionals to teach career and technical education courses together.

“At the same time, the bill pulls together numerous provisions from other proposals that have struggled to gain support in the past — many of which would add new compliance obligations and liability costs for employers that will slow economic growth,” Davis said.

He added that as Connecticut businesses work to fill more than 76,000 open jobs amid a declining workforce, “policymakers should remain focused on measures that strengthen competitiveness and grow the talent pipeline, rather than adding costs and complexity that could slow economic development and job creation.”