The minimum hourly pay in Connecticut climbed to $15.69 as of Jan. 1, 2024, which comes on the heels of a minimum wage system that has already steadily risen in recent years. This rise is a component of a larger program related to the Employment Cost Index (ECI), which is intended to help earnings match everyday living expenses.
Businesses have been especially affected by this systematic pay change. Knowing about these changes ahead of time can ensure you remain compliant with state regulations and control your labor costs.
This article will explain in depth Connecticut’s recent minimum wage increase and how tools like Mosey can elevate your business compliance.
What Is the 2024 Connecticut Minimum Wage Increase?
The minimum wage in Connecticut is $15.69 per hour as of 2024, an incremental increase from the $15.00 rate in 2023. The state has made a series of legal changes since 2019, and this rise directly relates to inflationary trends. Linking salaries to the Employment Cost Index helps the state adhere to broader economics.
Apart from the regular minimum pay, Connecticut also has particular guidelines for minors. For the first 90 days of their employment, employers may offer young workers a training salary equivalent to 85% of the minimum wage or at least $10.10 per hour.
After this period, minors must receive the full minimum pay. This flexibility is meant to help companies attract younger workers and provide them with opportunities to grow in experience.
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What Is the Minimum Wage for Tipped Employees in Connecticut?
Connecticut tipped workers have distinct pay scales. The law permits a tip credit for bartenders and restaurant employees, lowering the base wage companies must pay — provided the employee’s tips bring their total hourly compensation to at least $15.69 per hour.
Here’s a breakdown of how this works in practice:
- The minimum pay for restaurant workers is $6.38; the maximum tip credit is $9.31.
- The minimum pay for bartenders is $8.23, and the maximum tip credit is $7.46.
Should an employee’s tips fall short of the $15.69 minimum wage, you must make up the difference. Staying compliant with Connecticut law means maintaining thorough documentation of pay and tips.
How Does “One Fair Wage” Legislation Affect Tipped Employees?
Recent legislative activity has been aimed at eliminating the lower minimum wage for tipped workers. The “One Fair Wage” plan would set the same minimum pay for every employee, regardless of whether workers get tips.
Although this measure failed in the most recent legislative session, it is still a hot-button issue and may influence labor costs going forward.
If this measure is enacted, the tip credit system would be phased out, and all workers — including those who receive tips — would be paid the full minimum wage directly from their employers by July 2027.
Companies should stay current on any changes to this legislation, as it may significantly affect labor costs in sectors like restaurants that primarily depend on tipped employees.
What Is the Historical Trend of the Minimum Wage in Connecticut?
Examining the recent rises in minimum wage clarifies the direction of regulations in Connecticut. Take a look at the last four years:
- 2020: $12.00
- 2021: $13.00
- 2022: $14.00
- 2023: $15.00
- 2024: $15.69
These consistent gains show the state’s attempt to ensure salaries rise in line with inflation, enabling employees to satisfy the increasing demands of living expenditures. However, one would be remiss to ignore that 2024’s increase is less than prior years.
Still, this trend emphasizes the need for companies to plan for and include future pay increases in their financial forecasts.
What Is the Overtime Pay in Connecticut?
Along with fulfilling the criteria for minimum wage in Connecticut, companies in the state must follow state overtime rules. Employees who work more than 40 hours a week must be paid one and a half times their usual hourly rate for every extra hour.
Although some employment roles — such as executive, administrative, and professional staff — have exceptions, most employees follow this norm.
For instance, the overtime rate for an employee earning $15.69 per hour working 45 hours weekly is $23.54 per hour for the five hours worked beyond 40. Correctly calculating overtime pay is necessary to avoid penalties and ensure compliance with the law.
How Does Connecticut Compare to the Federal Minimum Wage?
Since 2009, the minimum wage in CT has been significantly greater than the federal minimum wage of $7.25. When state and federal minimum wages differ, employers must pay the higher of the two. The minimum pay in Connecticut, $15.69, applies to every employee working there.
This increased salary rate might be difficult for companies operating across several jurisdictions, especially if certain areas maintain a lower pay scale. Businesses operating in several states must confirm compliance with the minimum wages set by every local ordinance.
What Are the Workplace Poster Requirements in Connecticut?
Connecticut law mandates that companies exhibit certain workplace posters outlining employees’ rights. These posters address minimum pay, family medical leave, and employment discrimination.
You must make sure these posters are conspicuously visible in your workplace to remain compliant with state rules.
Among the posters you must display are:
- Employee Rights Under the Fair Labor Standards Act
- Job Safety and Health: It’s the Law (OSHA)
- Employee Rights and Responsibilities Under the Family and Medical Leave Act (FMLA)
- Connecticut Paid Sick Leave Poster
Keeping these posters up to date is a simple yet critical part of compliance.
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What Are Management Tips for the 2024 Wage Increase?
On paper, the increase to $15.69 per hour seems small, but the total impact of this change on your payroll is probably quite significant.
Even a modest pay raise can drastically impact labor costs for companies like retail stores and restaurants that depend on hourly workers. Managing these higher costs requires careful financial planning.
Here are some strategies worth considering:
Optimize Staffing
Review your staffing policies to make sure you are neither understaffed nor overstaffed during busy times. Matching workforce levels with customer demand helps save unneeded labor expenses while preserving service quality.
Invest in Technology
Invest in technology to help offset labor costs by simplifying processes. For instance, self-service kiosks or automated scheduling systems can help lower the demand for extra personnel at peak times.
Adjust Pricing Strategies
Change your pricing structure if you have to pay for growing labor costs. Effective communication of minor price changes can offset these wages without alienating customers.
Focus on Employee Retention
Maintaining the satisfaction of your present personnel will enable you to lower turnover, thereby saving on expenses related to hiring and training. Competitive perks and a healthy work culture can also help you retain top talent.
Strategic changes and careful preparation will help your company keep things running smoothly while still assisting your employees. Dealing with these changes can promote long-term success, but it depends on staying informed.
Mosey Can Help With Wage Adjustments
As minimum wage costs increase in Connecticut, being proactive is essential. Knowing how these developments impact your firm and practicing labor cost control can help you manage compliance and position your organization for long-term viability.
Mosey can simplify wage regulations and keep you ahead of compliance changes. Our compliance management platform provides you with the tools and direction you need to easily manage state-specific regulations. We can help keep your company on track, so book a Mosey demo today.
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