What You Need to Know About Connecticut’s Minimum Wage

Nothing in this article constitutes legal advice. Please consult a tax attorney or tax professional if you have questions about minimum wage compliance.

In the recent past, Connecticut minimum wage has been a regular topic of debate. If you’re a small-business owner, it’s important you’re in the know on current regulations and potential changes so you can plan accordingly.

To make sure you’re up to date, we’ve prepared a guide with must-know details on the minimum wage in Connecticut.

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What is the minimum wage in Connecticut?

The Connecticut minimum wage is $14 per hour in 2022, and is scheduled to rise to $15 per hour effective June 1, 2023.

Some additional Connecticut minimum wage rules apply for specific types of employees, including:

  • Tipped employees. Employers can take a tip credit for employees, and unlike federal law, Connecticut does not specify a minimum amount of tips to be classified as a “tipped employee.” With a tip credit, employers can pay a lower minimum cash wage, which varies based on employee type.

  • Minors under the age of 18, who can be paid 85 percent of the Connecticut minimum wage. Minors working at farms or for the government can be paid this rate indefinitely. For minors employed elsewhere, they can be paid this rate only for their first 200 hours of employment.

  • Employees considered exempt under the Fair Labor Standards Act (FLSA).

Keep in mind that some counties, cities, and towns may have their own minimum wage laws. Be sure to check what local wage laws may apply to you.

Will the minimum wage change beyond 2023?

The Connecticut minimum wage is scheduled to change in 2024 based on economic indicators such as the employment cost index.

How should small- business owners prepare for changes to the minimum wage?

It’s smart to plan ahead for the coming changes to the minimum wage in Connecticut. We recommend taking the following measures to ensure you’re prepared:

  • Reevaluate your staffing plan: Review your monthly sales and overhead costs to see if your current staffing levels are appropriate. Depending on your business model, it may make sense to reduce full-time staff throughout the year, and hire contract employees during your busy seasons.

  • Hire the right people: The hiring process is time-consuming and expensive. By following best hiring practices, you have a better chance of finding the right fit the first time around, which saves you money in the long run. Once you have your team in place, invest in your employees to keep them engaged.

  • Upgrade your technology: Save more time and money by streamlining tedious tasks. Learn how to do payroll yourself and the best ways to avoid common payroll mistakes. Square’s small business payroll frees up time for you to focus on issues like staffing and growing your business.

While these are helpful guidelines to follow, to make sure your business is prepared and stays in compliance, you should discuss Connecticut minimum wage laws with your accountant and lawyer.