Minimum wage in Connecticut

Under legislation passed during Connecticut’s 2002 legislative session the minimum wage was set up as an escalating process to increase over a five year period. Effective January 2002 the minimum was increased from $6.90 to $7.10 per hour. On January 1, 2006 the minimum wage was increased to $7.40 per hour and finally on January 1, 2007 the minimum wage will increase to $7.65 per hour making Connecticut’s minimum wage rate higher than most other states as well that of the current Federal minimum wage of $5.15 an hour.

In addition, the Connecticut General Assembly included an automatic increase to Connecticut minimum wage rate of 1/2 of 1 percent above the rate set in the Fair Labor Standards Act if the Federal minimum wage rate equals or becomes higher than the State minimum. It is interesting to note, however, that very few people in Connecticut actually are paid at the minimum wage. There are only about 39,000 Connecticut workers, or 2 percent of the labor force, who actually earn minimum wage.

Connecticut General Assembly also took into account three groups of tipped employees and how the minimum wage rate increase affects them.

For tipped waiters and waitresses at hotels and restaurants the maximum tip credit percentage remains unchanged at 29.3%. The actual dollar value of the maximum tip credit increases from $2.08 to $2.17 per hour and the minimum cash wage rate increases from $5.02 to $5.23 per hour.

For tipped bartenders the maximum tip credit percentage remains unchanged at 8.2% making the dollar value of the maximum tip credit increase from fifty-eight cents to sixty cents per hour and the minimum cash wage rate increase from $6.52 to $6.80 per hour.

All other tipped employees’ maximum tip credit remains unchanged at thirty-five cents per hour, however the minimum cash wage rate increases from $6.76 to $7.05 per hour.

While debate in Congress over the Federal minimum wage and how it effects “tip credits” is still ongoing, it seems that the state of Connecticut has a firm handle on how tipped employees’ minimum wage is calculated and remains one of the highest minimum wage compared to other states.