Connecticut lawmakers pass settlement with state hospitals, bill addressing wage law concerns

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(AP) - Connecticut lawmakers have approved a long-awaited settlement that Democratic Gov. Ned Lamont's office recently reached with hospitals regarding a contentious tax.

Passage of the deal means Connecticut will no longer be potentially exposed to as much as $4 billion in liability. The hospital deal received unanimous support in both the House of Representatives and Senate during Wednesday's special session.

MORE INFO: S.B. No. 1221, S.B. No. 1222

"Today marks the start of a desperately needed reset between the state and our hospitals, and I am thankful that we were able to come together and negotiate a settlement in good faith that provides stability for both sides while reducing the losses the state would have incurred in the absence of this agreement,” Lamont said in a statement. 

“This is a fair and reasonable settlement that limits and manages the state’s long-term risk and provides both the state and hospitals with predictability when it comes to user fee and Medicaid rates over the next seven years,” Attorney General William Tong said.

Lawmakers have also passed legislation that addresses concerns raised by restaurant owners facing class-action lawsuits over state wage and hour rules. Several Democratic senators who opposed the bill say it could unfairly prevent workers from seeking unpaid wages.

“This legislation is the result of collaborative discussions between our administration, lawmakers, and representatives of both sides, and it strikes the appropriate balance to protect the wages fairly earned by restaurant workers while providing relief to restaurant owners who may have complied with unclear or conflicting guidance from the prior administration’s Department of Labor,” Lamont said.

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