Employment Law Legislation Leads to More Questions Than Answers

Employment Law Legislation Leads to More Questions Than Answers

The House General and Housing Committee took testimony throughout the week on the bill that would remove the standard of severe or pervasive for unlawful harassment or discrimination. The only member of the committee with human resources experience raised concerns about how challenging implementation would be. Rep. Ashley Bartley (R-Franklin-1) asked the committee to consider codifying the standards of severe or pervasive with guidance around those standards like California’s law but ultimately the suggestion was not met with interest from other legislators. S.103 was voted out of committee and is now poised for passage in the House. If the bill becomes law, this will likely incur litigation to determine the guidelines for unlawful harassment and discrimination.  

The Vermont Chamber previously testified in the Senate Economic Development that the legislation would bypass the opportunity for restorative change and instead be lost to litigation.

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Liquor Liability Advances with Some Unaddressed Concerns

Liquor Liability Advances with Some Unaddressed Concerns

Following an outpouring of support from businesses, the Senate Judiciary Committee passed H.288, the liquor liability legislation, out of committee. While the committee did not address all concerns, including the need for removing all strict liability provisions, there is optimism that this is a step in the right direction to ensure licensees will have the ability to purchase liquor liability insurance. 

The Vermont Chamber has been advocating throughout this session in support of amending the statute to update Vermont’s dram shop laws. Specifically, to bring it in line with neighboring control states such as Maine and New Hampshire.   

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Will The House Deliver on Speaker’s Commitment to “Housing, Housing, Housing”?

Will The House Deliver on Speaker’s Commitment to “Housing, Housing, Housing”?

The omnibus housing legislation is entitled the “HOME” bill, which stands for housing opportunities made for everyone. However, S.100 is currently in the House Environment and Energy Committee, where there are some efforts to do the opposite and restrict the ability to develop housing while others fight to keep their promises to constituents. The Vermont Chamber continues to advocate for an amendment put forward by the Rural Caucus, which would expand exemptions, an important compromise with those who are opposed to any change at all. Before the start of the session, the Speaker of the House Jill Krowinski stated that “housing, housing, housing” was at the top of her priority list. It remains to be seen if legislation coming out of the House will rise to meet the overwhelming demand for workforce housing. 

In written testimony submitted to the House Energy and Environment Committee, the Vermont Chamber explained that the amendment would make responsible and reasonable amendments to Act 250 thresholds and address capacity issues as they relate to housing to support the development of housing in every county of Vermont. S.100 does include important steps to address local zoning and regulatory barriers to create a continuum of workforce housing opportunities. 

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Legislators Continue to Increase Tax Proposals with Only Weeks Left in the Session

Legislators Continue to Increase Tax Proposals with Only Weeks Left in the Session

With nearly half a billion in increased costs already on the table, now is not the time for even further tax proposal increases. However, the House Ways and Means Committee continued conversations on a new childcare funding plan that would increase corporate and personal income taxes. Since last week, rate proposals have already increased. New numbers from JFO suggest progressive increases and another rate change in 2028. If passed, S.56 would establish Vermont as having the highest corporate tax in the nation, just one year after the legislature made comprehensive reforms to the corporate tax system, further contributing to an unpredictable business climate.  

The committee has yet to hear testimony from anyone outside of legislative employees on the impacts of raising the corporate and personal income tax. The Vermont Chamber is committed to advocating for policies that are rooted in the economic reality of Vermont, and while Vermont is a leader on major initiatives, we cannot afford to do so by placing an undue burden on the people of Vermont.  

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House and Senate Conflict on Major Spending Initiatives, Budget Poised for Veto

House and Senate Conflict on Major Spending Initiatives, Budget Poised for Veto

The Senate has passed its version of the $8.5 billion state budget. A conference committee of House and Senate appropriation members will now be appointed to hash out an agreement on major spending proposals in H.494, including childcare and paid family and medical leave. The Senate’s budget does not include the money required to cover the paid family and medical leave plan passed by the House. Instead, the Senate earmarked enough funding for a parental leave benefit that they folded into their childcare bill to the tune of $7.6 million the first year and $15.7 million the next. In contrast, the House proposal for a comprehensive paid leave program would cost $37 million to start and $100 million annually.  

The conference committee will ultimately have to come to an agreement before passing the bill on to the Governor, who has repeatedly expressed concern that the budget does not reflect the needs of Vermont. A statement released by the Governor shortly after the Senate vote read, “Growing the base General Fund budget by over 13 percent could set us up for severe fiscal challenges in future years. The Legislature’s own economist predicts a possible decline in revenue for next year (FY24), which could lead to severe future cuts to the very programs this budget supports.” Notably, the Governor’s administration already has the launch of a voluntary paid leave program underway. 

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