Bill Text: CT SB00223 | 2016 | General Assembly | Comm Sub


Bill Title: An Act Concerning Liens For Unpaid Employee Wages And Disciplinary Suspensions For Harassment Or Workplace Violence.

Sponsorship: Committee Bill

Status: (Introduced - Dead) 2016-04-29 - Motion Failed JF [SB00223 Detail]

Download: Connecticut-2016-SB00223-Comm_Sub.html

General Assembly

 

Substitute Bill No. 223

    February Session, 2016

 

*_____SB00223LAB___031416____*

AN ACT CONCERNING LIENS FOR UNPAID EMPLOYEE WAGES AND DISCIPLINARY SUSPENSIONS FOR HARASSMENT OR WORKPLACE VIOLENCE.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2016) (a) Whenever an employee is aggrieved by an employer's failure to pay wages in violation of section 31-68 or 31-72 of the general statutes, the Labor Commissioner or the employee shall have a lien on any property, real or personal, in which such employer has an interest to enforce payment of such wages with costs and such reasonable attorney's fees that may be allowed by the court pursuant to said sections.

(b) To establish a lien for unpaid wages under this section, the Labor Commissioner or the employee shall serve notice of such lien by certified mail with a return receipt requested or by priority mail with delivery confirmation to the employer that failed to pay such wages. Such notice of lien shall contain such information as will identify (1) the owner of the property upon which the lien is claimed, (2) the residence or business address of such owner, (3) the specific property claimed to be subject to such lien, (4) the location of such property, (5) the amount of wages and accrued penalties and interest, including reasonable attorney's fees, claimed to be due the employee in relation to the lien, and (6) the pay period or periods for which such lien is claimed. Such lien shall be filed not later than one year after the final pay period in which such wages were due and shall attach and become perfected at the time when notice of such lien is filed pursuant to the filing provisions of part 5 of article 9 of title 42a of the general statutes.

(c) An employer may dispute such lien by filing a complaint in small claims court or the Superior Court where the employer's property is located not later than thirty days after notice was served on the employer. A complaint under this section shall include (1) a copy of the notice served pursuant to subsection (b) of this section, and (2) a statement of any defense to the lien for unpaid wages with an affidavit containing a statement of facts that support such defense. Not later than forty-five days after receiving such complaint, the court shall determine whether to issue an order establishing such lien and shall provide written notification to the employer and to the Labor Commissioner or the employee of such determination. On request of the employer or the commissioner or the employee, the court may hold an evidentiary hearing prior to making such determination.

(d) A lien is established under this section after the court provides written notification to the employer and to the Labor Commissioner or the employee of such determination, provided such employer does not file an appeal of such determination within thirty days after receiving such determination. Such lien shall be effective for a period of ten years from the date of filing unless extinguished or discharged as provided in subsection (f) of this section.

(e) An action to recover unpaid wages by the Labor Commissioner or the employee shall be deemed an action to foreclose upon any property subject to a lien established under this section. In any judgment resulting from such action, the court may order the sale or the transfer to the employee of title or possession of any property subject to such lien. Any property subject to such lien may be foreclosed upon at any point after a judgment for unpaid wages is issued.

(f) A lien established under this section shall be extinguished upon expiration of the limitations period applicable to any claim for unpaid wages if no action to recover such wages is commenced prior to the expiration of such limitations period. If judgment is entered in any action to recover unpaid wages, the lien shall be extinguished upon expiration of the applicable appeals period if no appeal is filed. If an appeal is filed, the lien shall remain in force until all issues on appeal have been decided. When the amount of unpaid wages with respect to which a lien has been created under this section has been satisfied, the Commissioner of Revenue Services, upon request of any interested party, shall issue a certificate discharging such lien, which certificate shall be filed with the Uniform Commercial Code Division of the office of the Secretary of the State in the same manner as termination statements are filed under section 42a-9-513 of the general statutes.

(g) Notwithstanding any provision of the general statutes, a lien established and perfected under this section has priority over the rights of any purchaser of any property of the employer, including any bona fide purchaser under 11 USC 545(2), and over all other debts, judgments, decrees, liens or mortgages against the employer, including a lien by a commercial lending company, regardless of whether these debts, judgments, decrees, liens or mortgages originated before or after the wage lien, and regardless of whether these debts, judgments, decrees, liens or mortgages were perfected prior to the wage lien. The Labor Commissioner's or the employee's lien is effective against the employer and the estate of the employer.

(h) A wage lien against real property may be recorded with the town clerk for the town in which any portion of the employer's property is located. A wage lien against personal property may be recorded in the same manner as a financing statement is filed with the Secretary of the State.

(i) Nothing in this section shall be construed to prevent the Labor Commissioner or the employee from exercising any right or seeking any remedy to which he or she may otherwise be entitled under any state or federal law.

Sec. 2. (NEW) (Effective from passage) (a) For purposes of this section, "employer" has the same meaning as provided in section 31-58 of the general statutes, and "employee" means any individual employed or permitted to work by an employer.

(b) If an employee employed in a bona fide executive, administrative or professional capacity, as defined in the regulations of the Labor Commissioner issued pursuant to section 31-60 of the general statutes, is absent from work as a result of a disciplinary suspension for violating a written workplace conduct rule prohibiting harassment or workplace violence, the employer may deduct from the wages of such employee an amount equal to the wages that would have been paid for the number of days such employee is absent.

(c) The Labor Commissioner may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, as the commissioner deems necessary to implement the provisions of subsection (b) of this section.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2016

New section

Sec. 2

from passage

New section

LAB

Joint Favorable Subst.

 
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