New Minimum Wage in Effect in Connecticut

New Minimum Wage in Effect in Connecticut
New Minimum Wage in Connecticut

If you own a business in Connecticut, then you’re probably already felt the sting of the new minimum wage laws. The Governor signed the bill back on May 28, 2019. The first phase of the law went into effect on October 1, 2019.

It’s important that employers be aware of the next several phases of the wage increases. They will happen every 11 months for the next several years. The schedule is as follows:

  • October 1, 2019 – $11 per hour
  • September 1, 2020 – $12 per hour
  • August 1, 2021 – $13 per hour
  • July 1, 2022 – $14 per hour
  • June 1, 2023 – $15 per hour

There are few allowances made for employer to help shoulder the cost of this rapid wage increase. For example, employers can continue to pay minors under the age of 18 at the rate of 85% of the current minimum wage. At least they can for the first 90 days of employment.

Employers are also allowed to take a tip credit. For bartenders, the minimum wage will now be set at $8.23. For hotel and restaurant employees, this amount is just $6.38. Of course, each year, companies are going to need recalculate these minimum mandatory amounts for their service workers.

This change in the minimum wage can impact your company in a variety of ways:

  • Labor and operational costs will increase
  • Shift differential rates must be adjusted
  • Overtime rates must be calculated
  • All employee rates need to be reconfigured each year in anticipation of the new deadlines

If you have questions about how the minimum wage laws will impact your company, give our lawyers a call. We can answer any questions you may have.


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