Starts October 1
The first phase of Connecticut’s new minimum wage law goes into effect on Tuesday, October 1; the state’s hourly pay threshold will rise to $11 per hour. The state’s minimum wage will increase to $15 an hour by 2023. After that, the state’s minimum wage would be adjusted based on the federal Employment Cost Index. This is the result of a bill signed into law by the Governor on May 28, 2019.
Minimum Wage Increase Schedule
Employers should also pay close attention to the schedule of upcoming wage increases and make note of how increased minimum wages may impact employee wage progression scales, positional pay differentials, and ultimately future labor and operations costs. Small business owners should also be mindful of the dates for the scheduled increases when pricing, bidding or spacing out future jobs and projects.
The minimum wage will increase over the next four years according to the following schedule:
|
Date |
Minimum Wage |
|
October 1, 2019 |
$11.00 |
|
September 1, 2020 |
$12.00 |
|
August 1, 2021 |
$13.00 |
|
July 1, 2022 |
$14.00 |
|
June 1, 2023 |
$15.00 |
Minimum Wage for Minors
The new law allows employers to pay minors under the age of 18 85% of the current minimum. This can be paid for the first 90 days of employment for minors.
Tip Credit
Employers can take a tip credit for employees. With a tip credit, employers can pay a lower minimum cash wage, which varies based on employee type. For bartenders, employers must pay a minimum cash wage of $8.23, and the maximum tip credit allowed is 18.5 percent of the applicable minimum wage. For hotel and restaurant employees, employers must pay a minimum cash wage of $6.38, and the maximum tip credit allowed is 36.8 percent of the applicable minimum wage.
Questions
If you have questions regarding the increased minimum wage, please contact the NFIB Small Business Legal Center at 800-NFIB-NOW (800-634-2669).
