Connecticut will incrementally increase the state minimum wage with the first increase scheduled for October 1, 2019. Beginning July 1, 2019, the formulas for calculating tip credit amounts will change, with increases on October 1 [H.B. 5004, L. 2019].
Minimum Wage Increases
Beginning October 1, 2019, the Connecticut minimum wage rate will increase to $11 an hour from $10.10 an hour. It will eventually reach $15 an hour, effective June 1, 2023. Beginning October 15, 2023, the Connecticut Labor Commissioner will announce annual adjustments for inflation. The first adjustment for inflation will go into effect on January 1, 2024.
Tip Credit Increases
Effective July 1, 2019, the Connecticut minimum cash wage paid to tipped employees in the hotel and restaurant industry will be frozen at the current rates of $6.38 an hour for tipped employees other than bartenders and $8.23 an hour for bartenders. This means the tip credits will increase, effective October 1, 2019, to: $4.62 an hour from $3.72 an hour for tipped employees other than bartenders; and $2.77 an hour from $1.87 an hour for bartenders.
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.