SB 391 – Would have required certain employers to pay a fee to the state for any employee they retain that does not make $15 or more per hour.

This bill would have required certain employers with over 500 employees in the state, and franchisors who, combined with their franchisees, collectively employ at least 500 employees in the state, to pay a quarterly fee to the DOL commissioner, based on the number of hours worked by employees who were:

  • On the employer’s or franchisee’s payroll for at least 90 days before the end of the most recent calendar quarter; and
  • Paid on average, less than $15 per hour during the quarter.

Under the bill, the DOL commissioner would have been required to assess the fee quarterly beginning with the first calendar quarter of 2017. Beginning January 1, 2023, the bill required the average pay per hour threshold of $15 to be adjusted annually by an amount corresponding to the prior year’s increase in the Consumer Price Index for All Urban Consumers, a measure of inflation published by the U.S. Department of Labor’s Bureau of Labor Statistics.

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