MINIMUM WAGE

• The Connecticut minimum wage rose from $7.65 to $8.00 on 1/1/2009 and will go to $8.25 on 1/1/2010

• Although both Connecticut and federal law require payment of a minimum wage, Connecticut sets its rate higher than the federal level and it is this higher minimum that state employers must pay.

• The minimum wage is the least amount that can be paid, with few exceptions; see below and the pages on EXEMPT EMPLOYEES for details.

CONNECTICUT MINIMUM WAGE

The minimum wage in Connecticut is indexed to stay one-half of one percent ahead of the federal minimum wage. Over the past several years, the combined effect of the Connecticut and federal laws has resulted in the following progression:

Effective Date U.S. Minimum CT Minimum
January 1, 2010 $7.25 $8.25
July 24, 2009 7.25 8.00
January 1, 2009 6.55 8.00
July 24, 2008 6.55 7.65
July 24, 2007 5.85 $.65
January 1, 2007 5.15 7.65
January 1, 2006 5.15 7.40
January 1, 2004 5.15 7.10
January 1, 2003 5.15 6.90
January 1, 2002 5.15 6.70
January 1, 2001 5.15 6.40
January 1, 2000 5.15 6.15
January 1, 1999 5.15 5.65
September 1, 1997 5.15 5.18
October 1, 1996 4.75 4.77
April 1, 1991 4.25 4.27
April 1, 1990 3.80 4.25

State Law: Conn. §31-58 requires all employers to pay at least the minimum wage.

Federal Law: The Fair Labor Standards Act (FLSA, 29 USC §201) has required a minimum wage since its passage in 1938 (at which time it was 25¢ per hour). The Act applies to all employees engaged in interstate or foreign commerce and all employers (including nonprofit organizations) grossing $500,000 or more per year and having two or more employees involved in interstate commerce. Retail and small service firms grossing below this amount theoretically are not covered by the FLSA; practically speaking, however, any enterprise that handles or sells materials affecting interstate commerce is covered by the law--that means almost everyone.

EXEMPT PERSONNEL

Certain job categories are exempt from the provisions of both the FLSA and the Connecticut wage and hour laws, including the minimum wage. The specific job requirements and dollar limitations for Administrative, Executive, and Professional employees and Sales personnel are set forth in detail under those topic headings in this volume (see EXEMPT EMPLOYEES).

NOTICES

Employers are required to post the state Labor Department's administrative regulations poster, plus a federal minimum wage poster (see NOTICES-POSTERS).

TRAINING WAGE

Federal Law: The law allows employers to pay as little as $4.25 to workers under age 20 during the first 90 days of their employment; however, this has to be coordinated with Conn. §31-60 which further restricts such training wages in our state.

State Law: Conn. §31-60 permits hiring of certain trainees at 85% of the applicable minimum wage. However, this lower rate can be applied only to persons aged 16 through 18, and for only 200 work hours. Connecticut also has a lower rate for "learners," but this applies only to established occupational training programs that are approved by the Commission of Labor.

Employers interested in investigating subminimum wages should check with both the state Labor Department (860) 263-6790 and the federal Employment Standards Administration (860) 240-4160 as to the limitations affecting their organization. In the past, some employers have found the subminimum wage recordkeeping requirements of state and federal law to be so onerous as to make it not worth while considering.

TIP CREDIT

Federal law: Employees who customarily receive more than $30 a month in tips must be paid at least $2.13 per hour in direct wages, and then tips can be used to make up the balance of the minimum wage. The employer must inform the employee in advance and must be able to show that the employee receives at least the minimum wage when direct wages and the tip credit are combined. Also, employees must retain all their tips except to the extent that they participate in a valid tip pooling arrangement. Note, however, that Connecticut law is more restrictive than the federal:

State Law: Restaurant and hotel employers whose employees receive tips are entitled to receive a credit of up to 31 percent of the minimum wage-ffor bartenders the credit is 11 percent. (Conn. §31-60(b)). The amount that can be credited in other industries is even more restrictive.

For the employer to qualify for a credit, the worker must actually receive tips equal to or greater than the amount of the credit.

Employers claiming credit for tips and gratuities as part of the minimum wage must:

1) record the amount of gratuities applied as credit for part of the minimum wage on a weekly basis as a separate item in the wage record, and

2) have affected employees sign a weekly statement attesting to the receipt of these gratuities (Conn. administrative regulations §31-60-2).

Caution: No allowances for gratuities may be applied to hours worked during which tips are not receivable--for example, time spent on set-up or clean-up before and after serving periods. Also, if the time spent performing work for which tips are receivable cannot be separated from the time for which tips are not receivable, then no allowance for gratuities may be applied to any of the hours worked (Conn. administrative regulations §31-62-E4).

DEDUCTIONS AFFECTING THE MINIMUM WAGE

Federal law: Federal law regarding deductions from pay is much more liberal than Connecticut law. In fact, under the FLSA meals and lodging, residential heating fuel, transportation, merchandise from the "company store," and instructional costs provided for the employees' benefit may be deducted at "fair value" (no profit to the employer) from the employee's wages-even if they reduce the employee's wages below the minimum wage-however, as Connecticut law is more restrictive, it applies:

State Law: The Connecticut Labor Department permits limited deductions from the minimum wage for the reasonable value of board and lodging provided to employees (Conn. administrative regulations §31-60-3). The state defines "board" as food furnished in the form of meals on a regularly established schedule. "Lodging" is defined as a housing facility available at all times of the day where an employee sleeps, rests, and may store clothing and personal belongings. Permissible deductions:

Board: Up to $0.85 per full meal; daily maximum of $2.55.

Lodging: No more than $4.00 per week for private room; $3.00 a week for a shared room.

The state Labor Department has specific requirements regarding such meals and lodging; contact the Wage & Workplace Standards Division of the state Labor Department at (860) 263-6790 for further guidance. See DEDUCTIONS-WITHHOLDING.

CROSS REFERENCE

Copyright 2009: Connecticut Human Resource Reports, LLC.