Connecticut Hikes Minimum Wage Effective January 1, 2014
The Connecticut General Assembly approved a pay hike for thousands of low-wage workers. The Connecticut minimum wage, currently $8.25 per hour, will increase to $8.70 on January 1, 2014, then $9 a year later. Employers should update their workplace posters to reflect the new rates.
Governor Malloy rejected a proposal that would have raised the minimum wage to $9.50 per hour over two years and tied future increases to inflation, but signed this legislation. Under the current scheme, employers will be better able to control costs with a more predictable minimum wage, but indexing the minimum wage to inflation is certainly a future possibility as advocates decry the loss in purchasing power that occurs when the minimum wage is not tied to inflation. Connecticut’s minimum wage is already higher than the federal minimum wage of $7.25 per hour.
This change comes amid a national clamor for an increase in the federal minimum wage. Connecticut law requires that the state minimum wage always exceed the federal minimum wage, so it is possible additional increases are in the offing.
As before, certain employers whose employees receive gratuities can claim a tip credit. On January 1, 2014, the tip credit will be $1.36 for bartenders and $3.01 for non-bartender hotel and restaurant workers. On January 1, 2015, these tip credits rise to $1.66 and $3.31, respectively. (This means the employer’s share will consistently be $7.34 for bartenders and $5.69 for non-bartender hotel and restaurant workers.)
Brody and Associates regularly advises management on complying with federal, state, and local employment laws including wage-and-hour laws. If we can be of assistance in this area, please contact us at firstname.lastname@example.org or 203.965.0560.