On March 27, 2014, Connecticut
Governor Dannel Malloy signed Senate Bill 32, now known as Public Act 14-1, which gradually increases
Connecticut’s minimum hourly wage to $10.10 over the next three years.
Currently, Connecticut’s minimum wage is $8.70 per hour, but this amount will
increase to $9.15 per hour on January 1, 2015; $9.60 per hour on January 1,
2016, and $10.10 per hour on January 1, 2017.
This
past March, President Barack Obama visited Connecticut to advocate for raising the federal minimum wage
to $10.10. Considering the partisan
divide in Washington, it is unlikely that Congress will act on this. Connecticut
is the first state to respond to Obama’s call to action. Advocates for this legislation have said that
it will help working families and will stimulate the economy by providing
additional funds to people who spend their money locally; whereas opponents of
the Act have cautioned that it could slow hiring at a time of already high
unemployment.
The
Act also effectively raises the minimum wage for tipped employees, such as hotel staff, wait staff, and
bartenders, who may
currently have a percentage of their tips counted towards their hourly income.
Employers are allowed to count some employees’ tips as a percentage of their hourly
minimum wage, which results in employers paying a smaller portion of the
employees’ required minimum wage as long as the employees’ tips make up the
difference. Presently, for hotel and wait staffs, employers are required to pay
their employees $5.69 per hour, which will increase to $5.78 in 2015, $6.07 in
2016, and $6.38 in 2017. Similarly, bartenders who are now receiving $7.34 per
hour exclusive of tips will receive $7.46 in 2015; $7.82 in 2016; and $8.23 in
2017.
In
addition, the Act enables employers to pay learners, beginners, and employees
younger than 18 years of age an hourly rate equal to 85% of the required
minimum wage for an employee’s first 200 hours of employment. Thus, the
required minimum wage for learners and beginners will increase from $7.40 to
$7.78 in 2015; $8.16 in 2016; and $8.59 in 2017.
Attorney David Rintoul has experience handling wage and hour
claims, and defending employers against Department of Labor Wage and Hour
Audits, and can work with you to ensure compliance with
this new legislation.
