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03/09/2023

March 9, 2023 Labor and Public Employees Committee SB 1180

Public Hearing Testimony of
Danté Bartolomeo
Commissioner
Department of Labor
Labor and Public Employees Committee
March 9, 2023

Good morning, Representative Sanchez, Senator Kushner, Representative Ackert, Senator Sampson, Representative Wilson, Senator Cabrera, and members of the Labor and Public Employees Committee. Thank you for the opportunity to provide you with written testimony regarding SB 1180 AN ACT CONCERNING RIDESHARE AND DELIVERY DRIVER MINIMUM STANDARDS. My name is Danté Bartolomeo and I am the Commissioner of the Connecticut Department of Labor.

While the Connecticut Department of Labor (CTDOL) recognizes the intent behind SB 1180, we must alert the Committee to several items of concern.  First, SB 1180 seeks to confer authority to CTDOL currently under the CT Department of Transportation statutes, both for rate setting and data transparency provisions.  SB 1180 is not clear in how these rates for the drivers are set, it could favor the wage of rideshare and delivery drivers over other workers who drive as part of their job, and SB 1180 seeks enforcement of a higher wage rate than minimum wage, which CTDOL is not currently authorized to enforce.  SB 1180 would cause CTDOL to regulate a non-employer/employee relationship and does not seek to declare the drivers as employees of the rideshare companies.

Second, SB 1180 essentially asks CTDOL to enforce independent contractor pay.  It requires companies to provide receipts to drivers and to CTDOL with breakdown of pay, passenger fare and deductions for fees and tolls.  CTDOL statutes currently require employers to maintain true and accurate time and wage records, but not passenger fees. CTDOL does not currently allow deductions for fees and tolls associated with the cost of an employer “doing business.” 

Third, the US Department of Labor currently maintains jurisdiction over interstate work travel.  The CTDOL does not have jurisdiction to enforce wage laws for work performed when workers cross state lines. Since little detail exists on reciprocity between states on the interstate fare paying issue, CTDOL must conduct reviews of records that contain mileage breakdowns per trip that will consist of lengthy, time-consuming audits.

Finally, SB 1180 would have a significant fiscal impact on CTDOL because CTDOL must develop a data records collection system to collect all the data records on rideshare and delivery drivers before any fees could be assessed. It would be difficult for CTDOL to assess the pro rata fee of each rideshare and delivery driver company because the statute is silent on this process. Also, no process exists if the rideshare and delivery driver companies seek to appeal their assessments. 

Thank you for the opportunity to provide this written testimony. 


 

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