Updated: October 21st, 2024
Before processing payroll in Connecticut, employers need to ensure they are caught up on Connecticut Minimum Wage requirements.
Here is everything you need to know about Connecticut Minimum Wage in 2024:
CT Minimum Wage for 2024
On January 1, 2024, the Connecticut Minimum wage was increased to $15.69 per hour. This represents a 4.6% increase over the 2023 CT minimum wage of $15.00 per hour.
Employers in Connecticut should also be aware of special wage rates for tipped workers. Specifically, the law includes two special minimum wage rates for hotel and restaurant staff and bartenders.
Connecticut also has a special minimum wage rate for minors for the first 90 days of employment.
CT Minimum Wage for 2025
On September 27th, 2024, Governor Ned Lamont announced that Connecticut’s minimum wage will increase to a rate of $16.35 per hour, as of January 1, 2025.
This increase comes after Connecticut's Labor Commissioner Danté Bartolomeo reported that the employment cost index increased by 4.2% over the twelve-month period ending on June 30, 2024. As a result, a $0.66 increase to the state’s minimum wage was determined.
Special Connecticut Minimum Wage Rate for Minors
Employers in Connecticut can pay minor employees (under age 18) at a minimum wage rate of 85% of the standard minimum wage rate for the state for the first 90 days of their employment. For 2024, this rate for minors is $13.34. As of January 1, 2025, it will increase to $13.90.
Minimum Wage Rates for Tipped Workers in Connecticut
Connecticut employers also have the ability to pay certain tipped workers at a lower wage rate until July 1, 2027.
The tipped worker minimum wage rate is determined by the type of worker and is a certain percentage of the standard minimum wage rate for the state.
The following table breaks down the tipped minimum wage rates in Connecticut for hotel and restaurant staff and bartenders until they are phased out in 2027.
Effective Date | Percentage for Hotel and Restaurant Staff | Percentage for Bartender |
July 1, 2024 | 65.8% | 78.2% |
July 1, 2025 | 78.0% | 88.0% |
July 1, 2026 | 90.0% | 91.8% |
July 1, 2027 | 100% | 100% |
Future Increases to Connecticut Minimum Wage
Connecticut workers and employers can anticipate that announcements will be made by October 15 of each year declaring the change in the minimum wage that will become effective on January 1 of the approaching year.
That said, don't let the recent minimum wage increase catch you off guard. In the realm of payroll, even small mistakes can lead to significant and costly issues. However, with the assistance of a Connecticut payroll service, you can rest assured that this change will be seamlessly taken care of.
CT Minimum Wage Increase History
Connecticut's path to raising the minimum wage to $15 began in 2019 when Governor Ned Lamont signed the minimum wage increase in May of that year. The first step involved increasing the state's minimum wage from $10.10 to $11 in October 2019.
Since then, Connecticut has pursued a consistent approach, with the minimum wage rising by $1 every 11 months, ultimately reaching the rate of $15.69 per hour on January 1, 2024.
Most recently, new updates have been announced for another increase on January 1st, 2025, as well as a plan to phase out the tipped worker minimum wage rates by July 1st, 2027.
Minimum Wage Compliance in Connecticut
Connecticut's steadfast commitment to increasing the minimum wage signifies its determination to create a fair and equitable economic landscape for workers. The state's calibrated approach, marked by incremental increases, sets a progressive example.
While businesses navigate the challenges posed by continued wage increases, many have taken proactive measures by voluntarily surpassing minimum wage requirements, stating their dedication to employee welfare and remaining competitive.
While businesses face the task of adjusting payroll to meet minimum wage requirements, partnering with a professional payroll service company can mitigate costly mistakes and ensure compliance.
Check out our other articles to learn more about other 2024 payroll updates for CT employers such as FUTA, SUTA updates, MyCTSavings CT retirement program, and more.