Bill Details - SB151 (2019)

SB 151-FN - VERSION ADOPTED BY BOTH BODIES

 

 

2019 SESSION

19-1089

04/06

 

SENATE BILL 151-FN

 

AN ACT establishing an administrative hearing procedure and penalty for an employer who fails to make payment of wages or who fails to secure workers' compensation coverage.

 

SPONSORS: Sen. Feltes, Dist 15; Rep. Ley, Ches. 9; Rep. Chirichiello, Rock. 6; Rep. Baroody, Hills. 43

 

COMMITTEE: Commerce

 

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ANALYSIS

 

This bill establishes an administrative hearing procedure and penalty for employers who fail to make payment of wages as required by law and for employers who fail to secure required workers' compensation coverage.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-1089

04/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT establishing an administrative hearing procedure and penalty for an employer who fails to make payment of wages or who fails to secure workers' compensation coverage.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Section; Administrative Orders for Employers' Failure to Make Payment of Wages.  Amend RSA 275 by inserting after section 51 the following new section:

275:51-a  Administrative Orders for Employers' Failure to Make Payment of Wages.

I.  If the commissioner determines, after an inspection pursuant to RSA 275:51, that an employer is knowingly in violation, or will knowingly be in violation, of the requirement of RSA 275:43, I to issue payment to its employees, the commissioner may issue a stop work order against the employer requiring the cessation of all business operations of such employer.  Such stop work order shall be issued only against an employer found to be in violation.  The commissioner may serve a stop work order at a place of business or employment by posting a copy of the stop work order in a conspicuous location at the place of business or employment.

II.  Any employer aggrieved by the imposition of a stop work order shall have 10 days from the date of service to appeal such order.  Any employer who timely files such appeal shall be granted a hearing by the commissioner within 5 days of receipt of appeal.  The stop work order shall not be in effect during the pendency of any timely filed appeal.  The commissioner shall rescind a stop work order if the commissioner finds at the hearing that the employer has paid all wages due.  If the commissioner finds at the hearing that the employer is not in compliance with the requirements of 275:43, I, the stop work order shall be effective immediately on the conclusion of the hearing and shall remain in effect until such time as the employer provides evidence, satisfactory to the commissioner, that the employer has paid such wages.

III.  A stop work order imposed under this section against any corporation, partnership, sole proprietorship, or limited liability company shall be effective against any successor entity that has one or more of the same principals or officers as the corporation, partnership, sole proprietorship, or limited liability company against which the stop work order was issued and are engaged in the same or equivalent trade or activity.

IV.  An employer who violates a stop work order shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.

V.  Decisions rendered by the commissioner of the department of labor under paragraph II may be appealed pursuant to RSA 541.

2  New Section; Workers' Compensation; Liability of Employer Failing to Comply.  Amend RSA 281-A by inserting after section 7 the following new section:

281-A:7-a  Administrative Orders for Employers' Failure to Secure Compensation Coverage.

I.  In addition to the provisions of RSA 281-A:7, the commissioner may issue a stop work order against an employer subject to this chapter that fails to comply with RSA 281-A:5 by not securing payment of compensation, requiring the cessation of all business operations at the place of employment or job site.  Such order shall take effect immediately upon its service upon said employer, until such employer provides evidence, satisfactory to the commissioner that the employer has secured any necessary insurance or self-insurance.  The commissioner may serve a stop work order at a place of business or employment by posting a copy of the stop work order in a conspicuous location at the place of business or employment.

II.  Any employer aggrieved by the imposition of a stop work order shall have 10 days from the date of its service to appeal such order.  Any employer who timely files such appeal shall be granted a hearing by the commissioner within 5 days of receipt of the appeal.  The stop work order shall not be in effect during the pendency of any timely filed appeal.  The commissioner may rescind a stop work order if the commissioner finds at the hearing that the employer has at all times been in compliance with this chapter.  If the commissioner finds at the hearing that the employer is not in compliance with this chapter, the stop work order shall be effective immediately on the conclusion of the hearing and shall remain in effect until such time as the employer provides evidence, satisfactory to the commissioner, that the employer has secured any necessary insurance or self-insurance.

III.  A stop work order issued under this section against any corporation, partnership, sole proprietorship, or limited liability company shall be effective against any successor entity that has one or more of the same principals or officers as the corporation, partnership, sole proprietorship, or limited liability company against which the stop work order was issued and are engaged in the same or equivalent trade or activity.

IV.  An employer who violates an issued stop work order shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person.

V.  Decisions rendered by the commissioner of the department of labor under paragraph II may be appealed pursuant to RSA 541.

3  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

19-1089

1/11/19

 

SB 151-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT establishing an administrative hearing procedure and penalty for an employer who fails to make payment of wages or who fails to secure workers' compensation coverage.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Multiple (See Methodology)

 

COUNTY:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

LOCAL:

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

METHODOLOGY:

This bill authorizes the Department of Labor to issue stop work orders to employers under two areas of noncompliance with statute: 1) when an employer has not secured workers compensation coverage; and 2) when an employer has failed to issue payment to employees for worked perform.  The stop work order requires the employer to cease operations and allows for an administrative proceeding to adjudicate the issue.  The Department of Labor reports this bill will impact state expenditures by an indeterminable amount.  However, the Department anticipates the penalty procedures in this bill would be added to existing processes within the Department and would unlikely increase state expenditures. If the Department were to experience an increase to expenditures, that increase would be funded using the agency income collected by the Department, which consists of an assessment on workers' compensation carriers and a series of fees and fines levied by the Department.

 

This bill contains penalties that may have an impact on the New Hampshire judicial and correctional systems.  There is no method to determine how many charges would be brought as a result of the changes contained in this bill to determine the fiscal impact on expenditures.  However, the entities impacted have provided the potential costs associated with these penalties below.

Judicial Branch

FY 2020

FY 2021

Class B Misdemeanor

$53

$54

Class A Misdemeanor

$76

$77

Simple Criminal Case

$296

$301

Routine Criminal Felony Case

$481

$486

Appeals

Varies

Varies

It should be noted that average case cost estimates for FY 2020 and FY 2021 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types.  An unspecified misdemeanor can be either class A or class B, with the presumption being a class B misdemeanor.

Judicial Council

 

 

Public Defender Program

Has contract with State to provide services.

Has contract with State to provide services.

Contract Attorney – Felony

$825/Case

$825/Case

Contract Attorney – Misdemeanor

$300/Case

$300/Case

Assigned Counsel – Felony

$60/Hour up to $4,100

$60/Hour up to $4,100

Assigned Counsel – Misdemeanor

$60/Hour up to $1,400

$60/Hour up to $1,400

It should be noted that a person needs to be found indigent and have the potential of being incarcerated to be eligible for indigent defense services.  The majority of indigent cases (approximately 85%) are handled by the public defender program, with the remaining cases going to contract attorneys (14%) or assigned counsel (1%).

Department of Corrections

 

 

FY 2018 Average Cost of Incarcerating an Individual

$40,615

$40,615

FY 2018 Annual Marginal Cost of a General Population Inmate

$4,620

$4,620

FY 2018 Average Cost of Supervising an Individual on Parole/Probation

$571

$571

NH Association of Counties

 

 

County Prosecution Costs

Indeterminable

Indeterminable

Estimated Average Daily Cost of Incarcerating an Individual

$105 to $120

$105 to $120

 

Many offenses are prosecuted by local and county prosecutors.  When the Department of Justice has investigative and prosecutorial responsibility or is involved in an appeal, the Department would likely absorb the cost within its existing budget.  If the Department needs to prosecute significantly more cases or handle more appeals, then costs may increase by an indeterminable amount.  

 

AGENCIES CONTACTED:

Department of Labor, Judicial Branch, Departments of Corrections and Justice, Judicial Council, and New Hampshire Association of Counties

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and Referred to Commerce; SJ 4
Feb. 5, 2019 Hearing: 02/05/2019, Room 100, SH, 01:30 pm; SC 9
Feb. 14, 2019 Committee Report: Ought to Pass, 02/14/2019; SC 10
Feb. 14, 2019 Special Order to After Energy and Natural Resources, Without Objection, MA; 02/14/2019; SJ 5
Feb. 14, 2019 Ought to Pass: RC 13Y-10N, MA; OT3rdg; 02/14/2019; SJ 5
March 20, 2019 Introduced 03/20/2019 and referred to Labor, Industrial and Rehabilitative Services HJ 11 P. 70
April 3, 2019 Public Hearing: 04/03/2019 01:00 pm LOB 307
April 17, 2019 Executive Session: 04/17/2019 02:30 pm LOB 307
Majority Committee Report: Ought to Pass (Vote 12-8; RC)
May 2, 2019 Majority Committee Report: Ought to Pass for 05/02/2019 (Vote 12-8; RC) HC 22 P. 11
Minority Committee Report: Inexpedient to Legislate
May 2, 2019 Ought to Pass: MA RC 212-145 05/02/2019
May 2, 2019 Ought to Pass: MA RC 212-145 05/02/2019

Action Dates

Date Body Type
Feb. 5, 2019 Senate Hearing
Feb. 14, 2019 Senate Floor Vote
Feb. 14, 2019 Senate Floor Vote
April 3, 2019 House Hearing
April 17, 2019 House Exec Session
House Floor Vote
May 2, 2019 House Floor Vote

Bill Text Revisions

SB151 Revision: 5166 Date: Jan. 22, 2019, 8:31 a.m.
SB151 Revision: 5869 Date: May 6, 2019, 9:38 a.m.