COMP NEWS – Connecticut legislators have approved a $70 million package to provide bonuses and wage increases to childcare workers in the state, citing a need to bolster a struggling but critical industry.

Gov. Ned Lamont announced Wednesday he would provide $1,000 “appreciation bonus payments” next month to thousands of child care workers to bolster an industry in crisis.

But, according to the Legislature’s top-ranking budget leaders, the $70 million lawmakers allocated was to give workers ongoing raises, not a one-time bump this fall.

“Child care staff work consistently to provide critically needed care to ensure that children are safe and their parents and guardians have the support necessary to go to work,” Lamont said. “They are an essential part of our economy and help make Connecticut the most family-friendly state in the country. We need to support this important industry that is vital to families, the workplace and society.”

The governor added that these bonuses — which are $1,000 for full-timers and $400 for part-timers — were created particularly to show gratitude for the job child care workers did during the height of the coronavirus pandemic.

Childcare workers in Connecticut are often paid close to minimum wage, which is $14 per hour in the state. Legislators say the pay is too low to retain workers in a critical industry.

Beth Bye, Lamont’s commissioner of the Office of Early Childhood, said the bonuses also would help stabilize an industry in which many earn close to minimum wage, which currently is $14 per hour.

Bye said child care services will be notified by email soon about the program. Program operators will have to apply for the funds, and those eligible will receive the money next month, which they then must distribute as bonuses to their workers.

“They’re doing really high-value work, and they’re really not compensated, and we need to hold onto those that we can,” she added.

According to one union for public service employees, nearly 30% of childcare workers have left the industry due to low pay over the past three years.

CSEA-SEIU Local 2001 applauded the investment in child care workers but also said more needs to be done. About 2,000 members of Local 2001 are employed through the CT Care 4 Kids program, a partnership between the state and various child care services.

“There’s no surprise that due to a lack of pay, affordable and accessible health care and no retirement security, we’ve seen nearly 30% of providers leave the industry for higher paying jobs over the last 3 years,” said union spokeswoman Drew Stoner. “We need Gov. Lamont to take additional bold action that respects the providers, assists the parents and uplifts the children that are desperate for affordable, accessible and quality child care.”

To read about how emergency savings options can increase employee retention, click here.

For more Comp News, see our recent posts.

 

Comp News by CompXL

Comp News is brought to you by CompXL, the flexible compensation software provider that enables mid- to large-size organizations to implement competitive pay structures such as vested stock options and variable incentive pay.

 

CompXL is now part of the Salary.com family!

Together, we're redefining the future of compensation management.

Schedule a demo on the Salary.com website!


REQUEST A DEMO
READ THE PRESS RELEASE

CompXL is now part of the Salary.com family!

Together, we're redefining the future of compensation management.

Schedule a demo on the Salary.com website!


REQUEST A DEMO
READ THE PRESS RELEASE

CompXL is now part of the Salary.com family!

Together, we're redefining the future of compensation management.

Schedule a demo on the Salary.com website!


REQUEST A DEMO
READ THE PRESS RELEASE