LCO 4580 \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07191-R01- HB.docx 1 of 5 General Assembly Governor's Bill No. 7191 January Session, 2019 LCO No. 4580 Referred to Committee on LABOR AND PUBLIC EMPLOYEES Introduced by: REP. ARESIMOWICZ, 30 th Dist. REP. RITTER M., 1 st Dist. SEN. LOONEY, 11 th Dist. SEN. DUFF, 25 th Dist. AN ACT INCREASING THE MINIMUM WAGE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsection (i) of section 31-58 of the general statutes is 1 repealed and the following is substituted in lieu thereof (Effective 2 October 1, 2019): 3 (i) "Minimum fair wage" in any industry or occupation in this state 4 means a wage of not less than six dollars and seventy cents per hour, 5 and effective January 1, 2003, not less than six dollars and ninety cents 6 per hour, and effective January 1, 2004, not less than seven dollars and 7 ten cents per hour, and effective January 1, 2006, not less than seven 8 dollars and forty cents per hour, and effective January 1, 2007, not less 9 than seven dollars and sixty-five cents per hour, and effective January 10 1, 2009, not less than eight dollars per hour, and effective January 1, 11 2010, not less than eight dollars and twenty-five cents per hour, and 12 Bill No. 7191 LCO 4580 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07191- R01-HB.docx } 2 of 5 effective January 1, 2014, not less than eight dollars and seventy cents 13 per hour, and effective January 1, 2015, not less than nine dollars and 14 fifteen cents per hour, and effective January 1, 2016, not less than nine 15 dollars and sixty cents per hour, and effective January 1, 2017, not less 16 than ten dollars and ten cents per hour, [or] and effective January 1, 17 2020, not less than eleven dollars and twenty-five cents per hour, and 18 effective January 1, 2021, not less than twelve dollars and fifty cents 19 per hour, and effective January 1, 2022, not less than thirteen dollars 20 and seventy-five cents per hour and effective January 1, 2023, not less 21 than fifteen dollars per hour. On January 1, 2024, and on each January 22 first thereafter, the minimum fair wage shall be adjusted by the 23 percentage change in the employment cost index for wages and 24 salaries for all civilian workers, as calculated by the United States 25 Department of Labor, or in its successor index, over the twelve-month 26 period ending on June thirtieth of the preceding year, and rounded to 27 the nearest whole cent. In no event shall the minimum fair wage under 28 this section be less than one-half of one per cent rounded to the nearest 29 whole cent more than the highest federal minimum wage, whichever is 30 greater, except as may otherwise be established in accordance with the 31 provisions of this part. On October 15, 2023, and on each October 32 fifteenth thereafter, the Labor Commissioner shall announce the 33 adjustment to the minimum fair wage which shall become the new 34 minimum fair wage and shall be effective on the January first 35 immediately following. All wage orders in effect on October 1, 1971, 36 wherein a lower minimum fair wage has been established, are 37 amended to provide for the payment of the minimum fair wage herein 38 established except as hereinafter provided. Whenever the highest 39 federal minimum wage is increased, the minimum fair wage 40 established under this part shall be increased to the amount of said 41 federal minimum wage plus one-half of one per cent more than said 42 federal rate, rounded to the nearest whole cent, effective on the same 43 date as the increase in the highest federal minimum wage, and shall 44 apply to all wage orders and administrative regulations then in force. 45 The rates for learners, beginners, and persons under the age of 46 eighteen years shall be not less than [eighty-five] the greater of eight 47 Bill No. 7191 LCO 4580 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07191- R01-HB.docx } 3 of 5 dollars and sixty cents per hour or seventy-five per cent of the 48 minimum fair wage for the first [two hundred hours] ninety calendar 49 days of such employment and equal to the minimum fair wage 50 thereafter, except institutional training programs specifically exempted 51 by the commissioner. 52 Sec. 2. Section 31-60 of the general statutes is repealed and the 53 following is substituted in lieu thereof (Effective October 1, 2019): 54 (a) Any employer who pays or agrees to pay to an employee less 55 than the minimum fair wage or overtime wage shall be deemed in 56 violation of the provisions of this part. 57 (b) The Labor Commissioner shall adopt such regulations, in 58 accordance with the provisions of chapter 54, as may be appropriate to 59 carry out the purposes of this part. Such regulations may include, but 60 are not limited to, regulations defining and governing an executive, 61 administrative or professional employee and outside salesperson; 62 learners and apprentices, their number, proportion and length of 63 service; and piece rates in relation to time rates; and shall recognize, as 64 part of the minimum fair wage, gratuities in an amount (1) equal to 65 twenty-nine and three-tenths per cent, and effective January 1, 2009, 66 equal to thirty-one per cent of the minimum fair wage per hour, and 67 effective January 1, 2014, equal to thirty-four and six-tenths per cent of 68 the minimum fair wage per hour, and effective January 1, 2015, equal 69 to thirty-six and eight-tenths per cent of the minimum fair wage per 70 hour for persons, other than bartenders, who are employed in the hotel 71 and restaurant industry, including a hotel restaurant, who customarily 72 and regularly receive gratuities, (2) equal to eight and two-tenths per 73 cent, and effective January 1, 2009, equal to eleven per cent of the 74 minimum fair wage per hour, and effective January 1, 2014, equal to 75 fifteen and six-tenths per cent of the minimum fair wage per hour, and 76 effective January 1, 2015, equal to eighteen and one-half per cent of the 77 minimum fair wage per hour for persons employed as bartenders who 78 customarily and regularly receive gratuities, and (3) not to exceed 79 thirty-five cents per hour in any other industry, and shall also 80 Bill No. 7191 LCO 4580 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07191- R01-HB.docx } 4 of 5 recognize deductions and allowances for the value of board, in the 81 amount of eighty-five cents for a full meal and forty-five cents for a 82 light meal, lodging, apparel or other items or services supplied by the 83 employer; and other special conditions or circumstances which may be 84 usual in a particular employer -employee relationship. The 85 commissioner may provide, in such regulations, modifications of the 86 minimum fair wage herein established for learners and apprentices; 87 persons under the age of eighteen years; and for such special cases or 88 classes of cases as the commissioner finds appropriate to prevent 89 curtailment of employment opportunities, avoid undue hardship and 90 safeguard the minimum fair wage herein established. Regulations in 91 effect on July 1, 1973, providing for a board deduction and allowance 92 in an amount differing from that provided in this section shall be 93 construed to be amended consistent with this section. 94 (c) Regulations adopted by the commissioner pursuant to 95 subsection (b) of this section which define executive, administrative 96 and professional employees shall be updated not later than October 1, 97 2000, and every four years thereafter, to specify that such persons shall 98 be compensated on a salary basis at a rate determined by the Labor 99 Commissioner. 100 (d) No employer may take any action to displace an employee, 101 including, but not limited to, a partial displacement of an employee, 102 such as reducing the employee's hours, wages or employment benefits 103 for purposes of hiring learners, beginners and persons under the age of 104 eighteen years at a rate below the minimum fair wage. If the Labor 105 Commissioner determines that an employer has knowingly violated 106 the provisions of this subsection, the commissioner shall suspend the 107 employer's right to pay the reduced rate for employees for a period of 108 time specified in regulations adopted pursuant to subsection (b) of this 109 section. 110 This act shall take effect as follows and shall amend the following sections: Bill No. 7191 LCO 4580 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07191- R01-HB.docx } 5 of 5 Section 1 October 1, 2019 31-58(i) Sec. 2 October 1, 2019 31-60 LAB Joint Favorable