SB451 (2020) Detail

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.


SB 451-FN - AS INTRODUCED

 

 

2020 SESSION

20-2865

04/03

 

SENATE BILL 451-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

 

COMMITTEE: Commerce

 

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ANALYSIS

 

This bill establishes an administrative hearing procedure and penalty for an employer who fails to make payment of wages or who fails to secure 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2865

04/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

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 RSA 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

20-2865

11/25/19

 

SB 451-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              [ X ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Fines, fees and certification revenue

 

 

 

 

 

COUNTY:

 

 

 

 

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

 

 

 

 

 

METHODOLOGY:

This bill establishes an administrative hearing procedure and penalty for an employer who fails to make payment of wages or who fails to secure workers' compensation coverage.  The Department of Labor assumes this bill would not increase county or local revenue or expenditures.  The Department expects the bill to have an indeterminable impact on its expenditures, but not to the extent to require additional staff.  Department believes it could handle the provisions as part of its existing operations.  The bill does not introduce additional penalties effecting the Department of Labor, but the new provisions are in addition to existing penalty powers within RSA 281-A:7 and RSA 275:43.

 

This also bill contains misdemeanor and felony 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 2021

FY 2022

Class B Misdemeanor

$54

$56

Class A Misdemeanor

$77

$79

Simple Criminal Case

$300

$314

Routine Criminal Felony Case

$484

$498

Appeals

Varies

Varies

It should be noted that average case cost estimates for FY 2021 and FY 2022 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 2019 Average Cost of Incarcerating an Individual

$44,400

$44,400

FY 2019 Annual Marginal Cost of a General Population Inmate

$5,071

$5,071

FY 2019 Average Cost of Supervising an Individual on Parole/Probation

$576

$576

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.  

 

It is assumed this bill will not take effect until FY 2021.

 

AGENCIES CONTACTED:

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

 

Links

SB451 at GenCourtMobile
SB451 Discussion

Action Dates

Date Body Type
Jan. 14, 2020 Senate Hearing
Jan. 30, 2020 Senate Floor Vote
Jan. 30, 2020 Senate Floor Vote
Jan. 30, 2020 Senate Floor Vote

Bill Text Revisions

SB451 Revision: 7656 Date: Dec. 20, 2019, 11:01 a.m.

Docket

Date Status
Jan. 8, 2020 To Be Introduced 01/08/2020 and Referred to Commerce; SJ 1
Jan. 14, 2020 Hearing: 01/14/2020, Room 100, SH, 01:20 pm; SC 2
Jan. 30, 2020 Committee Report: Ought to Pass, 01/30/2020; SJ 2
Jan. 30, 2020 Committee Report: Ought to Pass, 01/30/2020; SC 4
Jan. 30, 2020 Special Order to the end of the calendar, Without Objection, MA; 01/30/2020; SJ 2
Jan. 30, 2020 Ought to Pass: RC 14Y-10N, MA; OT3rdg; 01/30/2020; SJ 2
Jan. 9, 2020 Introduced 01/09/2020 and referred to Labor, Industrial and Rehabilitative Services HJ 2 P. 59
June 30, 2020 Vacated and Laid on Table MA VV 06/30/2020