Hartford Business Journal

OTHER VOICES CT should allow rideshare drivers to maintain independence By Bob Garguilo E lection Day 2020 featured races and storylines that will go down in history books, but one of the most consequential choices voters made was approving a specific ballot measure in California. Proposition 22 generated several headlines prior to Nov. 3, but ultimately passed with a resounding 6 million votes from Californians. What happens in California may feel distant to us in Connecticut, but the truth is we are wise to listen to what the overwhelming majority of workers and voters there wanted. Start with the details. In short, Prop 22 guarantees that rideshare drivers for companies like Uber and Lyft can remain independent contractors while enjoying a range of protections. Some have argued that this is a loss, but the measure fundamentally guarantees that drivers can maintain unprece- dented independence and work when- ever, wherever (and for whomever) they want, all while receiving new benefits. Voters in California rejected law- makers' attempts there to take away workers' flexibility. Hartford should learn from Sacramento's mistakes, and find a compromise that reflects what workers really want. There are several reasons why Con- necticut is the perfect place to lead the nation in creating a legislative solution that recognizes the unique flexibility of app-based work. First and foremost is to protect the gig economy and the jobs it supports across our state. There are about 35,000 workers in Connecticut who rely on gig work to earn money, and recent studies show gig work is an important social safety net during uncertain economic times. Many of these folks are rideshare drivers, who take on that work precise- ly because it allows them to customize their hours and earnings. COVID-19 has ravaged the economy everywhere, but leaders in Hartford have a chance to create legislation in Connecticut that offers new benefits like a portable benefits fund to cover expenses like health care or retirement savings. Most importantly, those benefits don't have to come at the expense of workers' flexibility. Another reason is transportation. Connecticut is a commuter state, and because many of our communities are suburban, a lot of people rely on rideshares for first mile/last mile transportation. COVID has undoubtedly thrown a wrench in this reality, but there will come a time when hundreds of thou- sands of folks again need to get to the Metro-North or Hartford Line. We will create a mess for ourselves if we pass rideshare rules that go too far, or make drivers' hours too formulaic. Such an outcome would both be a hassle for commuters (hurting ef- ficiency) and take earnings away from drivers (many of whom hit the roads when there is an uptick in demand for first mile/last mile rides). Protecting flexibility for app drivers will also help keep our roads safer for all drivers. There is no doubt that alterna- tive transportation options go a long way to take impaired drivers off the road. One landmark study showed that drunk driving fatalities occur 3.5% to 5.6% less in cities that have Uber. A joint report by MADD and Uber also found that people make more respon- sible decisions when they have access to reliable alternative transportation — namely rideshare programs. These are no small details, and they take on particular importance in Con- necticut, where in 2017 43% of all fatal car crashes involved alcohol. Rideshare regulations have life-or-death conse- quences, and getting them wrong in Connecticut will exacerbate one of our biggest public safety problems. Bob Garguilo is state executive director of Mothers Against Drunk Driving - Connecticut. Bob Garguilo OTHER VOICES Employers must prep now for CT's new paid leave program By Sarah Healey W hile employers continue to be consumed with addressing the many thorny employment issues related to the COVID-19 pandemic, they may be caught unaware by a few rapidly approaching deadlines related to Connecticut's Paid Family Medical Leave Act (FMLA). Of particular note, on Nov. 1, 2020, employers covered by this law may begin registering with the Paid Family Medical Leave Insurance Authority, and on Jan. 1, 2021, they must begin with- holding employee contributions to the Authority. By way of background, Gov. Ned Lamont last year signed into law one of the nation's most generous paid FMLA laws that will impact nearly every Connecticut employer and employee. It is probably the most significant workplace law that Connecticut has passed in decades. It applies to every private employer with one or more employees except private elementary and secondary schools. It also applies to certain "cov- ered public employees," including state employees who are not covered under a labor contract and public employees whose labor union negotiates inclu- sion into the program (and then all other non-union public employees of that public entity also are covered). There are two major components of the law: (1) It creates an insurance trust fund that will be administered by a new quasi-public agency — i.e., the Au- thority; and (2) it amends the existing Connecticut FMLA in significant ways. Employees will be eligible for ben- efits once they have been employed by any employer in Connecticut for at least 12 weeks and have earned at least $2,325 during the highest-earning quarter in the first four out of the five recently completed quarters. The weekly benefit amount is based on a formula and is capped at 60 times the state's minimum wage. Therefore, when Connecticut's minimum wage increases to $13 per hour on August 1, 2021, the maximum weekly amount will be $780. Eligible employees may take 12 weeks of paid FMLA in a 12-month period (plus an additional two weeks for a serious health condition related to pregnancy) for: Their own serious health condition; • The serious health condition of a covered family member; • Birth, adoption or placement of a child in foster care; • Service as an organ or bone marrow donor; or • A qualifying exigency when a spouse, child or parent is on active duty; to care for a covered military family member; and due to an act of family violence. The current definition of a family member is expanded to add siblings, grandparents, grandchildren, and an individual related to the employee by blood or close association. Many employees are likely to cheer these benefits. What they may be surprised to learn, however, is that this insurance program will be funded solely by an employee payroll tax not to exceed 0.5% of the employee's earn- ing up to Social Security contribution and benefits base (currently $132,900). Employers need to begin planning for, and communicating with their employees about the payroll tax so that they are not surprised by the additional deduction that will soon hit their paychecks. Sarah S. Healey is a partner in Carmody Torrance Sandak & Hennessey's litigation group. Sarah Healey OPINION & COMMENTARY www.HartfordBusiness.com • November 30, 2020 • Hartford Business Journal 29

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