Connecticut Minimum Wage to Increase to $9

Gov. Dannel P. Malloy recently signed legislation that raises the hourly minimum wage in Connecticut from $8.25 to $8.70 on January 1, 2014 and then from $8.70 to $9.00 on January 1, 2015. The change also increases the “tip credit” in each of those years to keep the employer’s share of tipped hotel and wait staff’s hourly wages at its current $5.69 and bartenders’ hourly wages at its current $7.34 (PA 13-117, effective July 1, 2013). The federal minimum wage remains at $7.25 an hour, which has not changed since 2009.

“This gradual increase over two years is a balanced approach to helping hard working men and women without adversely impacting the business community,” said Malloy in a recent article announcing the increase. “Although I believe our nation as a whole should move in this direction, I also think Connecticut needs to lead the way in helping working families.”

It’s important to keep in mind that when minimum wage goes up, Connecticut overtime pay rates also go up for those earning minimum wage. In other words, because the minimum hourly wages are raised, overtime pay rate for employees will also increase. At a regular hourly rate of $9.00 per hour, a minimum wage worker’s overtime pay rate will be $13.50 per hour ($9.00 x 1.5 = $13.50).  An employee earning the current minimum wage under Connecticut labor law ($8.25 per hour) will receive $12.38 per overtime hour worked.  For those who put in more than a few overtime hours per week, this can have a meaningful  positive impact on their paycheck. In Connecticut, all non-exempt employees are required to be paid 1.5 times their regular hourly rate for any hours worked over 40 during a 7-day work week time span. Overtime is calculated on a weekly basis, meaning that even if an employee works 12 hours in one workday, he or she does not receive overtime pay unless his or her hours actually worked add up to over 40 in that specific week.

Oftentimes, overtime pay rules in states that have labor laws that differ from the federal law can be difficult to understand. If you’re unsure whether or not you’re being paid proper overtime, it’s important to contact an experienced attorney to ensure you receive the pay that is rightfully yours. Call 1-866-559-0400, email mlore@overtime-flsa.com or submit your information using our convenient Case Evaluation form for a FREE and CONFIDENTIAL review of your circumstances.

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