Minimum Wage Regulations

The tipped minimum wage rate for any employee who customarily receives at least $30 in tips per month remains at $6.38 per hour, and the employee’s wage and tips must combine to equal at least the current minimum wage rate. If an employee’s wages and tips do not combine to equal at least minimum wage, the employer must make up the difference. The employer’s tip credit percentages will increase along with the minimum wage so as to maintain the employer’s share of tipped employees’ wages at present dollar levels.

Overtime Pay

All non-exempt employees must be paid 1.5 times their regular hourly rate for all hours worked over 40 in a seven-day week. – Overtime is calculated on a weekly basis. Even if an employee works 12 hours in one workday, he or she will not receive overtime pay unless he works more than 40 hours in that week.

Exemptions

Employers must follow both Connecticut wage law and United States federal law. These require employers to pay all “employees” a minimum wage and increased rate for overtime. However, the definition of employee has many exceptions under Connecticut law. An exemption means the worker is not considered an employee and is not entitled to the increased overtime rate. See this page for a list of exemptions.

The exemptions from overtime pay under Connecticut labor law are similar to federal law with regard to the “White Collar” exemptions, however, Connecticut’s labor law does not recognize the “computer professional” exemption or the “highly compensated” exemption provided under federal law. In addition to the requirements listed below each exemption, under the state law “short test”, a worker must receive a salary of at least $475 per week in order to qualify (except for the outside sales exemption). This salary requirement is higher than the previous federal law minimum salary of $455* per week which was in effect until 12/31/2019, after which it increased to $684. These exemptions are:

Executive – Worker’s full-time responsibility (at least 80% of time working / 60% for retail & service employees)
- must be managing the enterprise or a recognized department, and
- directing the work of at least two employees
Administrative – Worker’s primary duty (at least 80% of time working / 60% for retail & service employees)
- must be non-manual work related to business operations, management policies, or administrative training,
- which requires the exercise of discretion and independent judgment
Professional – Worker’s primary duties (at least 80% of time working)

must require knowledge of an advance type customarily acquired by prolonged course of education, or
must include work that is original and creative in character, and
must require exercise of discretion and judgment or inventive, imaginative or artistic work
Outside Sales
- Worker’s primary duties (at least 80% of time working) must be making sales or taking orders outside of their employer’s main workplace

* The Department of Labor under the Obama Administration increased this salary amount to $913 per week ($47,476/year) effective 12/1/2016; however, this increase was blocked by a court ruling. The Trump Administration increased the minimum salary but to the lower amount of $684 per week. Please see this page for the latest updates.

Commission Sales Exemption

An additional overtime exemption exists for commissioned inside salespeople. The definition of an inside salesperson is any employee:

whose sole duty is to sell a product or service
whose pay rate is greater than 2 times the minimum wage rate
who earns commissions that are more than 1/2 of their total compensation
who does not work more than 54 hours per week.

Car Salesperson / Mechanic

An additional overtime exemption exists for any salesman primarily engaged in selling automobiles. The definition of “salesman” includes any person employed by a licensed new car dealer:

whose primary duty is to sell maintenance and repair services
whose pay rate is greater than 2 times the minimum wage rate
who earns commissions that are more than 1/2 of their total compensation<
who does not work more than 54 hours per week.

As of October 1, 2019, the CT minimum wage is $11 per hour (increasing to $12/hour as of 9/1/2020) which means a salesperson’s rate of pay must be higher than $22 per hour ($24 as of 9/1/2020) in order to be exempt from the overtime requirement under either of these exemptions. If these requirements are not met, these employees must be paid time and a half after 40 hours per week.

Misclassification of Independent Contractors

While there are situations in which workers are legitimately running their own business and properly treated as independent contractors who are not entitled to receive overtime, employers are not allowed to mischaracterize employee roles to avoid paying overtime compensation.

Merely labeling a worker as an independent contractor, or even entering into a written agreement, is not enough to avoid the labor laws on overtime pay. There are several factors to be considered in determining if a worker in Connecticut is an employee or independent contractor (a/k/a 1099 employee)

The Connecticut Department of Labor utilizes an ABC Test to determine if a worker is an employee or an independent contractor.

The following are the 3 “ABC” tests:

To what extent is the employee under the direction and control of the contracting company? The more control the company has, the more likely the company will be classified as an employer.
Are the person’s services within the normal scope of business for the company? If the person is performing services the company normally performs, it is more likely the person is an employee. If the person works almost entirely inside the company’s offices or facilities, the job is more likely to be one of an employee.
Is the person independently established? Does the person have his or her own established business customarily providing this type of service? If not, the person is more likely to be an employee.

Wage Payments Requirements

Weekly Pay Requirement
Each employer shall pay weekly all moneys due each employee on a regular payday, designated in advance by the employer in cash or negotiable check or upon the employee’s written request, by credit to such employee’s bank account.

Payment on Termination
The employer shall pay an employee who voluntarily terminates or is laid off on the next regular payday. If an employee is discharged all wages are due the next business day.

Withholding of Wages
No employer may withhold or divert any portion of an employee’s wages unless required or empowered by state or federal law, the employer has written authorization from the employee on a form approved by the Labor Commissioner, or for a medical premium or retirement plan.

Employer to Furnish Certain Information
Each employer shall advise his employees in writing, at the time of hiring, the rate of remuneration hours of employment and wage payment schedules and make available to his employees either in writing or through a posted notice, any employment practices and policies or change therein with regard to wages, vacation pay, sick leave, health and welfare benefits and comparable matters.

Waiver of Weekly Pay Requirement
The Labor Commissioner may, upon application, permit the employer to establish pay days less frequently than weekly.

Holidays / Vacation / Sick Leave

Connecticut does not have a state law requiring additional pay for work completed on weekends or holidays. Employers do not have to offer pay for time not worked, including vacation or holiday but employers may offer it if they so choose. Generally, Connecticut employers with at least 50 employees must provide paid sick leave, with some limitations.

Meal Breaks / Rest Periods

Most employees who work 7.5 consecutive hours or more must be given a meal period of at least 30 minutes at some time after the first 2 hours and before the last 2 hours of work. See this page for further details.

Reporting Time Pay

Neither Connecticut nor the Federal law requires payment if an employee reports to work expecting to work for a certain number of hours but does not get to work their full schedule.

Statutes of Limitations

Employees seeking unpaid wages or overtime have two years to file suit. If the employee’s violation was willful, the employee has three years to file suit.

Remedies / Penalties

Connecticut employers who withhold wages are liable for as much as double the amount of unpaid wages, costs, and attorney’s fees. Failure to pay appropriate wages is also a crime. In addition to civil penalties, violators can face misdemeanor charges.

See this page for further details about the Connecticut Wage and Hour laws.

Connecticut Overtime Laws & Wages Attorney