Minimum wage rates in the U.S. vary widely by state, with some states following the federal baseline, and others setting their own state-wide regulations. Connecticut is a notable example of the latter. In fact, the Connecticut minimum wage is one of the nation’s highest, reflecting the state’s commitment to ensuring fair pay for its workers.
But what is Connecticut’s minimum wage? And are there any wage laws in the state that provide additional protections or adjustments?
Read on to find out everything you need to know about the Connecticut minimum wage including the history, current rates, exemptions, upcoming changes, and the policies that have been put in place to safeguard fair wages and ensure they keep pace with inflation and the cost of living.
- U.S. Minimum Wage Framework
- History of the Connecticut Minimum Wage
- What Is the Current Connecticut Minimum Wage?
- Connecticut Minimum Wage: Exemptions & Special Cases
- Additional Connecticut Wage Laws
- Best Practices for Connecticut Wage Law Compliance
- Manage payroll on time and error-free 🚀
U.S. Minimum Wage Framework
Before we delve into the Connecticut minimum wage, let’s start with the basics: How minimum wage works in the U.S.
The minimum wage in the United States is a complex system with multiple tiers, each set by a different level of government: federal, state, and municipal. This progressive approach aims to ensure that workers across the country receive a fair wage in line with local economic conditions.
Federal Minimum Wage
As the baseline, the federal minimum wage is the lowest hourly rate that employers are legally allowed to pay their employees. It is set by the Fair Labor Standards Act (FLSA) and was last raised in 2009 to $7.25 per hour. This rate, which ensures that employers comply with a basic level of compensation regardless of their location or industry, is significantly lower than the median hourly wage of all workers in the United States ($35.00 per hour).
State Minimum Wages
Recognizing regional variations in local economies and the cost of living, there are now many state minimum wage laws that set the threshold higher than the federal rate. These state-level mandates ensure that workers in higher-cost areas receive a wage that reflects their cost of living. For example, the minimum wage is $12.30 per hour in Missouri, $12.00 per hour in Hawaii, and $16.28 per hour in Washington State (the highest rate in the country). Connecticut also has its own state minimum wage, as we will see in the next section.
Municipal Minimum Wages
To further address regional economic environments, some cities and counties have implemented local minimum wage mandates that are higher than both federal and state rates. This approach ensures that workers in urban centers, where the cost of living is often higher, receive a wage that reflects their specific environment.
Variations by Industry
Finally, in addition to regional differences, the minimum wage can also vary based on industry. For example, the minimum wage for tipped employees in the service industry is typically lower than the minimum wage for non-tipped employees. This is because many states expect tipped employees to receive a significant portion of their income from tips.
History of the Connecticut Minimum Wage
Connecticut has been at the forefront of minimum wage legislation in the U.S., regularly updating its standards to reflect changing economic conditions. The state has implemented multiple wage increases over the years, demonstrating a strong commitment to fair pay and addressing the rising cost of living. These changes are part of Connecticut’s ongoing efforts to promote economic equity for its workforce and ensure that wages remain sufficient to meet basic needs.
Key milestones in the state’s minimum wage history include:
- 1951. The first Connecticut minimum wage law is enacted, providing foundational protections for workers.
- 1979. The state adopts annual CT minimum wage adjustments tied to inflation, helping workers maintain purchasing power as living costs rise.
- 2014. Connecticut becomes a leader in wage reform by raising the minimum wage to $10.10. This was one of the highest in the country at the time, far exceeding the federal minimum.
- 2019. Governor Ned Lamont signs a law mandating incremental wage increases to the Connecticut minimum wage, culminating in a $15 hourly wage by 2023. This legislation placed Connecticut at the forefront of the movement for a livable wage.
- 2024. Connecticut’s minimum wage increases to $15.69. This is alsothe first time a state minimum wage is tied to the Employment Cost Index (ECI). As a result, wages are now automatically adjusted based on inflation and wage trends.
What Is the Current Connecticut Minimum Wage?
As of January 1, 2024, the Connecticut minimum wage is $15.69 per hour. This increase reflects the state’s commitment to providing fair wages and is part of a broader effort that began in 2019 with a law designed to gradually raise the minimum wage. Initially, the law set a goal of reaching $15 per hour by 2023. Now, moving forward, Connecticut’s minimum wage will be adjusted annually based on the Employment Cost Index (ECI), which tracks inflation and wage trends. This ensures that the minimum wage keeps pace with the cost of living, benefiting approximately 160,000 to 200,000 workers across the state.
The Connecticut minimum wage is one of the highest in the nation and underscores the state’s proactive stance on supporting lower-wage workers, especially in a high-cost state. This automatic adjustment mechanism helps prevent wage stagnation and ensures more consistent financial security for employees.
Are There Any Municipal Connecticut Minimum Wage Rates?
No, Connecticut does not currently have any municipal minimum wage ordinances. The state operates under a uniform statewide minimum wage, meaning cities and towns within Connecticut do not set their own minimum wage rates. The Connecticut minimum wage laws are governed at the state level, ensuring that all workers are subject to the same minimum wage standards. Future wage increases in the state will be linked to the Employment Cost Index (ECI), ensuring that the statewide minimum wage adjusts in line with inflation and broader economic conditions.
Connecticut Minimum Wage: Exemptions & Special Cases
While most workers are entitled to the standard Connecticut minimum wage, there are some notable exceptions where different pay structures apply.
Here’s everything you need to know.
Tipped Employees
One of the most notable exemptions is Connecticut’s higher base wage for tipped workers compared to the federal rate ($2.13 per hour). In addition, waitstaff and bartenders in the state have a different minimum wage structure. Only a few other states, such as New York and Massachusetts, similarly distinguish between waitstaff and bartenders in their minimum wage structures for tipped employees.
Tipped Connecticut minimum wage rates:
- Bartenders: Minimum base wage is $8.23 per hour.
- Hotel and restaurant waitstaff: Minimum base wage is $6.38 per hour.
Employers can pay tipped employees these lower base wage rates as long as their total earnings, including tips, equal or exceed the state’s minimum wage of $15.69 per hour. If tips do not bring the employee’s total earnings up to the Connecticut minimum wage, the employer must make up the difference.
Learners, Trainees, and Apprentices
Connecticut’s wage policies for learners, while similar to federal youth wage provisions, set a higher pay threshold than the federal standard and limit the reduced wage period to 200 hours.
Essentially, this means that employers in Connecticut can pay learners, trainees, and apprentices a reduced wage for the first 200 hours of employment. This wage is 85% of the standard minimum wage, which comes to $13.34 per hour in 2024. This reduced rate is designed to encourage hiring for training or apprenticeship purposes while still ensuring fair compensation.
Minors (Employees Under 18)
Workers under 18 years old can also be paid 85% of the minimum wage for their first 200 hours of employment ($13.34 per hour), similar to learners and trainees. After that period, they must be paid the full Connecticut minimum wage.
Agricultural Workers
While the federal minimum wage allows certain exemptions for agricultural workers (such as family-run farms or smaller operations that do not meet specific sales thresholds), Connecticut maintains stricter standards. For instance, most agricultural workers in the state are required to receive at least the Connecticut minimum wage, regardless of farm size. However, there is some flexibility for seasonal or temporary workers, where federal exemptions usually apply. Despite this, Connecticut generally ensures that even smaller operations must meet higher wage standards than those allowed at the federal level.
This balance between maintaining higher state-level controls while allowing some flexibility for smaller or seasonal agricultural employers ensures that Connecticut supports both workers and smaller farming operations.
Executive, Administrative, and Professional Employees
Salaried employees in executive, administrative, or professional roles who earn more than two times the Connecticut minimum wage (based on a 40-hour workweek) are exempt from the state’s minimum wage laws.
Persons with Disabilities
Finally, in limited cases, employers can pay employees with disabilities less than the Connecticut minimum wage if they have received special permission from the Connecticut Department of Labor. This is generally applicable in situations where the disability affects the employee’s productivity.
Additional Connecticut Wage Laws
Aside from the Connecticut minimum wage, the state has a number of additional wage laws that employers need to understand as these can have an impact on an employee’s wages.
Let’s explore these additional Connecticut wage laws in a bit more detail so you can make sure your employee handbook meets all requirements.
Overtime
Connecticut follows the federal standard for overtime, which requires employers to pay 1.5 times the regular hourly rate (time and a half) for hours worked beyond 40 in a week. For example, if an employee received the Connecticut minimum wage rate of $15.69 per hour, you must pay them $23.54 per hour for every hour of overtime. However, in contrast to federal law, the state applies this rule universally, with no exemptions for small businesses. In addition, Connecticut law ensures that overtime pay for tipped employees is calculated based on the full minimum wage ($15.69), not their lower base cash wage, ensuring fairer compensation.
Meal Breaks
Connecticut law requires employers to provide a 30-minute meal break to employees who work at least 7.5 consecutive hours. The break must be given after the first two hours and before the last two hours of a shift. This differs from federal law, which does not mandate meal or rest breaks unless an employer chooses to provide them.
However, there are some exceptions to this rule, including:
- If the work is continuous, such as chemical production or research experiments
- If the employer has fewer than five employees on a shift
- If the position can only be performed by one employee
- If compliance could harm public safety
Meal breaks are unpaid, but employees must be paid if they work during their break at the request of their employer.
Paid Sick Leave
On May 21, 2024, Governor Lamont signed into law new legislation that significantly expands Connecticut’s existing paid sick leave law by requiring that virtually all private employers in the state provide employees with paid sick leave no later than January 1, 2027.
Connecticut’s new paid sick leave law introduces several key differences from federal standards. For instance, unlike federal law, which does not mandate paid sick leave under the Fair Labor Standards Act (FLSA), Connecticut will require all private employers to provide this benefit. Employees will earn one hour of paid sick leave for every 40 hours worked, covering personal illness, medical appointments, caregiving, or addressing domestic violence.
Additionally, Connecticut’s definition of “family member” will be expanded to include chosen family, going beyond traditional legal or biological definitions, which is more inclusive than federal regulations. This expanded law offers workers greater flexibility and protection compared to the Family and Medical Leave Act (FMLA), which applies only to larger employers. The change reflects Connecticut’s broader commitment to worker rights and aligns with its aim to offer more comprehensive benefits than federal law.
Wage Deductions
Connecticut law places stricter limitations on wage deductions compared to federal law. Employers can only make deductions for specific reasons and must obtain the employee’s written consent for any other deductions.
Legal deductions in Connecticut include:
- Federal income tax
- Social Security tax
- Medicare tax
- State income tax
- Local taxes
- Unemployment insurance taxes
- Workers’ compensation insurance premiums
Pay Stubs
Employers in Connecticut must provide employees with pay stubs that detail key information about their wages. The pay stubs must include the employee’s hours worked, gross wages, net wages, and any deductions such as taxes or benefits. The information must also show the dates of the pay period and any overtime earned. This ensures transparency and helps employees verify that they are being paid correctly. Employers must retain these records for three years for compliance purposes.
Timekeeping and Recordkeeping
Finally, employers in the state must adhere to strict timekeeping and recordkeeping laws. Specifically, employers are required to maintain accurate records of employees’ hours worked, wages, and other employment conditions. These records must include start and stop times, total hours worked, overtime hours, breaks, and any wage deductions. Employers must keep these records for three years. Records must also be available for inspection by the Connecticut Department of Labor.
Using employee record management software can make this easier. These systems automate time tracking, payroll processing and compliance checks. This cuts down on errors and saves time. By using this technology, you can maintain accurate and reliable records and focus on other important parts of your business.
Best Practices for Connecticut Wage Law Compliance
If you are an employer in Connecticut, then it’s essential that you comply with all state wage laws. This includes Connecticut’s stringent recordkeeping and minimum wage requirements. To avoid legal penalties, employers should adopt best practices that streamline all payroll, timekeeping, and recordkeeping processes.
Factorial’s software offers comprehensive solutions that can help businesses comply with all state regulations efficiently:
- Accurate payroll management. Ensure all employees are paid the correct Connecticut minimum wage, including overtime. You can use automated payroll systems like Factorial’s payroll software for this, as it adjusts for Connecticut’s minimum wage increases and tip credits.
- Track hours accurately. Use Factorial’s timekeeping tools to track employee start and stop times, total hours, breaks, and overtime. This helps you you comply with Connecticut’s break, time tracking and recordkeeping requirements.
- Simplify recordkeeping. Factorial stores payroll and employee time records digitally for three years or more. That way, data is readily available for audits or inspections by the Connecticut Department of Labor.
- Generate compliant pay stubs. Automatically generate pay stubs that detail hours worked, wages earned, deductions, and overtime pay. This helps you comply with Connecticut wage statement requirements.
- Monitor paid sick leave. Factorial can also track employees’ accrued paid sick leave under Connecticut’s law. That way, you can ensure proper leave accrual and usage for all eligible employees.
- Real-time updates. Finally, keep your business up to date with Connecticut wage laws through Factorial’s system. Our platform is regularly updated to reflect new legislation and wage adjustments.
By leveraging Factorial’s comprehensive payroll and HR features, businesses in Connecticut can stay compliant with the state’s evolving wage and hour laws, including the Connecticut minimum wage, while minimizing manual errors and administrative burden.
