General Assembly Committee Bill No. 6462, introduced in the January Session of 2023, proposes new legislation concerning the recoupment of state costs attributable to low-wage employers. The bill defines terms such as "person," "franchise," "franchisor," "franchisee," "employee," and "covered employer," with a covered employer being any entity in the state that employs 500 or more employees in any quarter after January 1, 2023, excluding private nonprofit entities and government agencies. It also sets the definition of "wage" as compensation due to an employee by reason of their employment.

The bill mandates that covered employers pay a fee to the Labor Commissioner for each employee who has been on the payroll for at least 90 days prior to the end of the current quarter and whose wages were less than $20 per hour. This fee is assessed quarterly at a rate of one dollar for each hour worked by such employees, starting from January 1, 2024. The bill prohibits covered employers from misclassifying employees or reducing their hours to avoid paying the fee. It also outlines the process for covered employers to challenge the fee assessment, including the right to a hearing and the ability to appeal to the Superior Court. Additionally, the bill requires employers to inform the Labor Commissioner if they are a franchisee and to provide franchisor information annually. The purpose of the bill is to require certain employers to pay a quarterly fee for each employee earning less than $20 per hour, with the aim of offsetting state costs associated with low-wage employment.