Richard Blumenthal, Connecticut's Attorney General has launched an investigation into AIG's claim that the bonus pay out was required by CT law.
"AIG is shamelessly shielding itself behind the Connecticut Wage Act, a joke of a justification for squandering scarce taxpayer resources," Attorney General Richard Blumenthal said in a statement on Tuesday. "We should use any and every well-founded legal weapon to recapture these baseless bonuses."
Blumenthal added that he will "carefully investigate" AIG claim's that the bonuses were required by state law. Connecticut's Wage Law looks to me like it was written to protect the average worker, not highly paid top executives:
Most employers are subject to coverage under both the Federal Fair Labor Standards Act and Connecticut's minimum wage laws (Title 31 Chapter 558 Part I and II of the Connecticut General Statutes). The employer must comply with the laws that provide the higher standard for employees.
An employer should be aware of the following requirements:
A. Connecticut's minimum wage: $8.00 per hour.
B. Connecticut's Overtime Pay.
Each employer shall pay 1-1/2 times the employee's regular rate of pay after 40 hours in the workweek. Overtime pay is due for actual hours worked over 40.
- No requirement to pay overtime on a daily basis, weekends, or holidays except by agreement.
- There are some specific exceptions to overtime pay. For example:
- agricultural employees.
- executive, administrative, professional employees as defined by the Labor Commissioner.
- any salesman primarily engaged in selling automobiles.
- any driver or helper where the U.S. Secretary of Transportation has the power to establish qualifications and minimum hours of service.
- any outside salesperson as defined by the Fair Labor Standards Act.
C. Connecticut's Record-Keeping Requirements.
- Each employer shall keep at the place of employment for a period of three years a true and accurate time and wage record for each employee. The records shall also show the following:
1) name.
2) home address.
3) occupation.
4) total daily and weekly hours worked showing the beginning and ending time of each work period, computed to the nearest unit of 15 minutes.
5) total hourly, daily, or weekly basic wage.
6) overtime wage as a separate item.
7) addition and deductions from wages each pay period.
8) total wages paid each pay period.
9) working certificates for 16-18 year old employees.
Please refer to Connecticut General Statutes, 31-58, 31-58a, 31-76b, 31-76c, 31-76i and 31-66.
D. Wage Payment Requirements.
Weekly Pay Requirement.
- Each employer shall pay weekly all moneys due each employee on a regular payday, designated in advance by the employer in cash or negotiable check or upon the employee's written request, by credit to such employee's bank account.
Payment on Termination.
- The employer shall pay an employee who voluntarily terminates or is laid off on the next regular payday. If an employee is discharged all wages are due the next business day.
Withholding of Wages.
- No employer may withhold or divert any portion of an employee's wages unless required or empowered by state or federal law, the employer has written authorization from the employee on a form approved by the Labor Commissioner, or for a medical premium or retirement plan.
Employer to Furnish Certain Information.
- Each employer shall advise his employees in writing, at the time of hiring, the rate of remuneration hours of employment and wage payment schedules and make available to his employees either in writing or through a posted notice, any employment practices and policies or change therein with regard to wages, vacation pay, sick leave, health and welfare benefits and comparable matters.
Waiver of Weekly Pay Requirement.
- The Labor Commissioner may, upon application, permit the employer to establish pay days less frequently than weekly.
E. Regulations for Specific Industries.
- There are regulations covering the following industries:
- Mercantile.
- Dry Cleaning.
- Laundry.
- Restaurant.
- Beauty Shops.
The Administrative Regulations cover all other industries and occupations.
The Reuters article also points out that some of the bonuses given went to employees that were responsible for much of AIG's troubles. This diary, currently on the rec list, points out that 11 of the executives who received the bonuses have left the company.
As Thom Hartmann pointed out today the people who had a hand in causing Americans to lose their 401K's, to lose their jobs, to have their home values plummet should not be rewarded with tax payer dollars.
As for the story that Senator Dodd specifically inserted a provision into the stimulus that says any pay limitations would not apply to contracts agreed to prior to February 11, 2009; there is no evidence to that as of yet. Fox News, The National Review, and the Drudge Report are all over this story. Dodd is already in a lot of trouble in CT politically, so let's hold our fire until we know for sure. This story may or may not have legs and we don't need to help it along.