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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Legislative Intern Spotlight: Ashley Maynes

Legislative Intern Spotlight: Ashley Maynes

Name: Ashley Maynes 

College: University of Vermont 

Field of Study: Public Communication, Strategic Communication Concentration 

Graduating: May 2023 

Hometown: Pawlet, VT 

“It is such a treat to be surrounded by the minds who come together on various legislative measures that impact Vermont. I consider myself an observant person, so working with the Chamber in this way has given me a new lens through which I am able to learn about the inner workings of the state that I am happy to call my home. One skill that I am happy to have is the ability to remain neutral while being a part of certain contexts, and my work with the Chamber has lent itself to me being able to exercise that with regularity. I have grown in my capacity to listen and consider things holistically and with an open mind. 

Along with my work for the Chamber, I have learned a great deal about consumer policy in Vermont through my work with the Vermont Attorney General’s Consumer Assistance Program (CAP). In the office every week, I provide constituent services to Vermonters who are looking for guidance through issues relating to consumer protection issues like fraud and scams. It has been a gift to have the opportunity to apply what I’ve learned at CAP to some legislative measures that were deliberated this session. I will take this foundation of knowledge of Vermont and apply it to whatever it is that I will do next. 

 After college, I’m not sure what I’ll do! I would love to embark on my journey in the public sector, an interest that has been greatly informed during my time here at Vermont’s beautiful statehouse. I am confident that something great will come my way. If there are any legislators reading this who need assistance, know that I am eager to learn about and advocate for policies that benefit Vermont. I would love to work for you! 

Thanks for reading! I can be reached at the following email and phone number. It has been a pleasure watching you all work so hard to make Vermont the special place that it is. Enjoy the summer!” 

Contact Information: 
Email: amaynes15@gmail.com 

The 2023 Legislative Monitoring Collaborative is made possible by the support of the National Life Group: 

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Legislators Engage with Rural Businesses

Legislators Engage with Rural Businesses

The House Commerce and Economic Development Committee traveled to the Northeast Kingdom for a series of field hearings. The agenda centered on workforce recruitment and retention and legislators engaged with several businesses. The Vermont Chamber was in attendance to bolster advocacy efforts on the need for economic stewardship. 

Businesses visited by the committee include the Vermont Corrections Academy, Gilbert Technologies, Vermont’s Original Bag Balm, and Pratiko. Legislators also attended a career and apprenticeship fair in Lyndon Center and toured a coworking space in Lyndonville. 

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Tax Hikes to Fund Childcare and Paid Family and Medical Leave Include Corporate Income, Personal Income, and Payroll

Tax Hikes to Fund Childcare and Paid Family and Medical Leave Include Corporate Income, Personal Income, and Payroll

The House Ways and Means Committee unveiled a plan for doubling state funding for the childcare system by increasing the top corporate income tax bracket rate to 10% and increasing all personal income tax brackets by 0.5%. Testimony from the Joint Fiscal Office detailed how the corporate and personal income tax hikes would fund the $100 million expected annual cost. These increases would be in addition to the 0.55% payroll tax that the committee passed to pay for an expansive paid family and medical leave program.  

If passed, the legislation would establish Vermont as having the highest corporate tax in the nation and would apply to the 2,000 Vermont businesses with a net income of over $25,000. This comes only a year after the legislature made changes to the corporate tax system that benefits corporations that have a Vermont-based workforce. This proposal would wipe out those benefits with a higher corporate tax rate. Changes to corporate income structure multiple times in a short period would further exacerbate what is already an unpredictable business climate.  

The House Human Services Committee previously passed the bill out of committee by a vote of 10-1. Notably, the parental leave provision passed by the Senate was removed from the bill. 

 

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Health Care Legislation Championed by Vermont Chamber Becomes Law

Health Care Legislation Championed by Vermont Chamber Becomes Law

Governor Scott signed legislation to keep the small group market separated from the individual market throughout 2025. S.54 is considered a rare “win-win” for small businesses, the state, and Vermonters and was advocated for by the Vermont Chamber. The successful passage of this bill ensures that small businesses, which represent only 6% of the health insurance landscape, will not have to shoulder the added weight of subsidizing premiums for the individual market. 

The Vermont Chamber will remain engaged on this issue and is dedicated to reminding legislators that the root problem remains to be addressed. Looking ahead to 2025, this issue of cost-shifting will require further action to achieve a plan that ensures small businesses do not get burdened with the full cost of holding the individual market harmless.  

 

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Liquor Liability Legislation Needs Urgent Action

Liquor Liability Legislation Needs Urgent Action

Bars and restaurants are depending on legislative action to ensure they can obtain liquor liability insurance. H.288 was previously passed by the House without contest but has stalled in the Senate. While inaction will put businesses at risk of closing, legislative leaders did not take up this important legislation this week. If legislative action is not taken, the industry will be left on the verge of not being able to secure liquor liability insurance. The Vermont Chamber and Vermont Independent Restaurants will continue to advocate for the Senate to take immediate action. Contact your Senator today and encourage them to act on H.288 to support Vermont’s restaurant and bar industry.  

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 which contain two concepts of liability, one for the negligent service of alcoholic beverages and the other for the reckless service of alcohol. The Vermont Chamber is also advocating for removing the landlord from the chain of liability.

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