Boucher Blasts 1st of its Kind Job Killing Measure Coming out of Labor Committee

Hartford, CT – State Senator Toni Boucher (R-Wilton) released the following statement today re: the proposed ACT CONCERNING LOW WAGE EMPLOYERS – requiring certain employers to pay a quarterly fee to the Labor Commissioner for each employee who receives wages below the standard rate of covered wages predetermined by statute.

“Once again Connecticut’s legislature has put forth a proposal that effectively tells businesses to keep away. This legislation would fine large employers, (500 workers or more), $1 per hour for any workers who are not being paid a standard wage ($11.31).

“Connecticut says that it is open for business. However is just paying lip service to the public’s justifiable concern over jobs. Dictating what an employer must pay employees sends a chilling effect throughout the business community and expands Connecticut’s business unfriendly reputation. If this proposal is successful we would be the first state to pass such a mandate.

Investors Say stay out of Connecticut

“A new startup business my district is on the cutting edge of a new technology. The owner would like to expand from eight workers to forty. However, potential investors have advised him that he must move his business out of his home state before they will fund this expansion, since they have calculated it will cost 25% more for any new hire within the state of Connecticut.

“This is one of many examples of how the constant barrage of anti-business bills has hurt job growth. The mere discussion of these bills in committees scares businesses away. It is no wonder that our once robust and dynamic economy has fallen to the bottom in business climate and economic performance.

“United Van Lines, a St. Louis based moving company has released its annual survey. The company analyzed a total of 125,000 moves across the country. Of the top nine states where more people are moving out than moving in, Connecticut ranked No. 5. According to the study, moving patterns reflect long-term shifts in the U.S. economy and the hit to employment in many states resulting from the slow recovery.

“Connecticut has high unemployment and is still struggling to recover the jobs lost in the recession. In 2013 Connecticut was the only state where the economy shrank. The state’s high taxes and high labor costs have contributed to the decline in our Gross Domestic Product. And yet, the labor committee is considering minimum wage hikes that further burden businesses after previously adding higher income and energy taxes, mandatory paid sick leave, and the unionization of home day care providers and health care aides. Further weighing down businesses, it added additional unemployment insurance costs for each employee on its payroll.

“The list of lasts Connecticut can claim is astonishing. An August 2013 article in Forbes, explored the many ways in which Connecticut has fallen behind the rest of the nation. A summary of that article has been attached as an addendum, and makes for sobering reading.

“Given this dismal track record, why would any business relocate to Connecticut and what kind of message are we sending by constantly putting job killing proposals before the legislature?

“If Connecticut were truly open for business it would eliminate costly mandates, reducing business overhead. It would also keep its promise to sunset the 20% surcharge on corporate profits and eliminate the Business Entity Tax.

“Job killing legislation like the Act Concerning Low Wage Employers will force businesses to raise the costs of goods and services which will inevitably cause them to lose customers or reduce staff, or relocate out of state.

“State government should stop interfering in how a business should be run and return power back to the marketplace. If Connecticut were truly open for business, it would reward not punish, success.”