Connecticut has enacted legislation (House Bill 5004) that will increase the state’s minimum wage in several phases.
General Minimum Wage:
The state’s minimum wage will increase as follows:
· $11 per hour on October 1, 2019;
· $12 per hour on September 1, 2020;
· $13 per hour on August 1, 2021;
· $14 per hour on July 1, 2022; and
· $15 per hour on June 1, 2023.
Beginning January 1, 2024, the minimum wage will be adjusted annually for employer cost index.
Scheduled increases may be suspended by the state if certain negative economic conditions exist.
Subminimum Wage:
Currently, Connecticut allows employers to pay a subminimum wage to employees who are learners, beginners, or under the age of 18, for the first 200 hours of employment.
Effective October 1, 2019, House Bill 5004 makes changes to the rules governing the subminimum wage. Employers will no longer be permitted to pay a subminimum wage to learners and beginners. Additionally, House Bill 5004 has shortened the period of time during which employers can apply the subminimum wage to minors. Under the law, employers may pay employees under the age 18 (except emancipated minors) a wage of at least 85 percent of the general minimum wage or $10.10, whichever is greater, for the first 90 days of employment. No other employees may be paid the subminimum wage.
Note: Effective October 1, 2020, employers are prohibited from taking any action to displace an employee for the purposes of hiring workers under the age of 18 years at a rate below the minimum wage.
Tipped Employees:
The minimum cash wage for tipped employees, other than bartenders, will remain at $6.38 per hour. The minimum cash wage for bartenders will remain at $8.23 per hour. If the employee’s cash wages and tips fail to equal or exceed the applicable minimum wage, the employer must make up the difference.
Compliance Recommendations:
Connecticut employers should ensure compliance with House Bill 5004 and post an updated minimum wage notice once published by the state.
Please contact your dedicated service professional with any questions.