Governor Lamont and the Connecticut Department of Labor announced that the state minimum wage will increase to $16.35 per hour on January 1, 2025.
This increase is the result of an annual index-based adjustment to occur under legislation signed in 2019. Employers should expect notice of the new minimum wage each fall by October 15th with an effective date of January 1st.
For hotel and restaurant employees who normally receive sufficient gratuities, the employer share remains at least $6.38 per hour ($8.23 for bartenders), but the employee must still make at least $16.35 per hour including tips and employers must follow recordkeeping and reporting obligations related to the tip credit.
Employers should take this opportunity to ensure that their workplace posters are up to date and reflect the new minimum wage. The posters are available from the Connecticut Department of Labor at http://www.ctdol.state.ct.us/gendocs/labor_posters.htm, but the posters have not yet been updated with the new minimum wage.
Additionally, unless the rule is blocked by a court, a federal requirement to pay most exempt employees a salary of at least $1,128 per week ($58,656 per year), will go into effect on January 1, 2025, as well. Accordingly, employers should review their payrolls with respect to both hourly and salaried employees to ensure compliance with new rates for 2025.
Our team of labor and employment attorneys can assist employers in adjusting to the new minimum wage requirements and ensuring compliance with all applicable labor and employment laws.