Senate committee hears detailed testimony on three labor drafts covering ag pay, vacation payouts and workers’ compensation

The Senate Economic Development, Housing & General Affairs Committee spent a large portion of its session reviewing three related labor drafts — commonly referred to in testimony as 652, 653 and 654 — that would change pay rules for agricultural workers, require payment of accrued leave at separation, and amend parts of the workers’ compensation system.

The Department of Labor’s commissioner, Michael Harrington, told the committee the department did not support advancing any of the drafts in their current form and urged more time for stakeholder conversations. Harrington and his staff described a mixed set of changes: some items that the department said were straightforward and could be implemented with little change, and other items that would require significant legal, technical and fiscal work before the state could adopt them.

Why it matters: The bills would affect payroll obligations, state employers, and the workers’ compensation fund. Several proposals carry multi‑million‑dollar price tags or raise administrative and privacy questions for state contracting, which committee members and agency witnesses said could change how the state does construction and procurement.

Harrington and his staff highlighted sections the department said needed further work. On agricultural minimum wage provisions (section 1 of the lead draft), the Labor Department recommended engaging the Agency of Agriculture, which has day‑to‑day experience with Vermont farms and seasonal labor. Harrington said the department was “neutral” on some pieces but urged more stakeholder testimony before the committee moved forward.

On payout of accrued vacation and other leave at separation (section 3), Harrington said the department wants clearer rules to handle common workplace arrangements such as unlimited leave and combined paid time off. He flagged operational questions — for example, how employers should treat payouts when an employee quits, is laid off, or is terminated for misconduct, and how payouts would interact with unemployment insurance eligibility.

Workers’ compensation changes drew the most detailed fiscal discussion. Harrington and Dirk Anderson, director of workers’ compensation and safety, summarized outside actuarial work the department had requested. The National Council on Compensation Insurance (NCCI) estimated a…