LCO No. 5164 1 of 4 General Assembly Raised Bill No. 1177 January Session, 2023 LCO No. 5164 Referred to Committee on LABOR AND PUBLIC EMPLOYEES Introduced by: (LAB) AN ACT CONCERNING ONE FAIR WAGE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 31-60 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2023): 2 (a) Except as provided in subdivision (5) of subsection (i) of section 3 31-58, any employer who pays or agrees to pay to an employee less than 4 the minimum fair wage or overtime wage shall be deemed in violation 5 of the provisions of this part. 6 (b) The Labor Commissioner shall adopt such regulations, in 7 accordance with the provisions of chapter 54, as may be appropriate to 8 carry out the purposes of this part. Such regulations may include, but 9 are not limited to, regulations defining and governing an executive, 10 administrative or professional employee and outside salesperson; 11 [learners and apprentices, their number, proportion and length of 12 service;] and piece rates in relation to time rates; and shall recognize, as 13 part of the minimum fair wage, [gratuities in an amount (1) equal to 14 twenty-nine and three-tenths per cent, and effective January 1, 2009, 15 Raised Bill No. 1177 LCO No. 5164 2 of 4 equal to thirty-one per cent of the minimum fair wage per hour, and 16 effective January 1, 2014, equal to thirty-four and six-tenths per cent of 17 the minimum fair wage per hour, and effective January 1, 2015, and 18 ending on June 30, 2019, equal to thirty-six and eight-tenths per cent of 19 the minimum fair wage per hour for persons, other than bartenders, 20 who are employed in the hotel and restaurant industry, including a 21 hotel restaurant, who customarily and regularly receive gratuities, (2) 22 equal to eight and two-tenths per cent, and effective January 1, 2009, 23 equal to eleven per cent of the minimum fair wage per hour, and 24 effective January 1, 2014, equal to fifteen and six-tenths per cent of the 25 minimum fair wage per hour, and effective January 1, 2015, and ending 26 on June 30, 2019, equal to eighteen and one-half per cent of the minimum 27 fair wage per hour for persons employed as bartenders who customarily 28 and regularly receive gratuities, and (3) not to exceed thirty-five cents 29 per hour in any other industry, and shall also recognize] deductions and 30 allowances for the value of board, in the amount of eighty-five cents for 31 a full meal and forty-five cents for a light meal, lodging, apparel or other 32 items or services supplied by the employer; and other special conditions 33 or circumstances which may be usual in a particular employer-34 employee relationship. The commissioner may provide, in such 35 regulations, modifications of the minimum fair wage herein established 36 [for learners and apprentices; persons under the age of eighteen years; 37 and] for such special cases or classes of cases as the commissioner finds 38 appropriate to prevent curtailment of employment opportunities, avoid 39 undue hardship and safeguard the minimum fair wage herein 40 established. Regulations in effect on July 1, 1973, providing for a board 41 deduction and allowance in an amount differing from that provided in 42 this section shall be construed to be amended consistent with this 43 section. 44 (c) Regulations adopted by the commissioner pursuant to subsection 45 (b) of this section which define executive, administrative and 46 professional employees shall be updated not later than October 1, 2000, 47 and every four years thereafter, to specify that such persons shall be 48 compensated on a salary basis at a rate determined by the Labor 49 Raised Bill No. 1177 LCO No. 5164 3 of 4 Commissioner. 50 [(d) (1) Effective July 1, 2019, the Labor Commissioner shall 51 recognize, as part of the minimum fair wage, gratuities in an amount 52 equal to the difference between the minimum fair wage and the 53 employer's share per hour for persons, other than bartenders, who are 54 employed in the hotel and restaurant industry, including a hotel 55 restaurant, who customarily and regularly receive gratuities. The Labor 56 Commissioner shall also recognize, as part of the subminimum wage 57 established in subdivision (5) of subsection (i) of section 31-58, gratuities 58 in an amount equal to the difference between such subminimum wage 59 and the employer's share per hour for persons, other than bartenders, 60 who are employed in the hotel and restaurant industry, including a 61 hotel restaurant, who customarily and regularly receive gratuities. 62 (2) Effective July 1, 2019, the Labor Commissioner shall recognize, as 63 part of the minimum fair wage, gratuities in an amount equal to the 64 difference between the minimum fair wage and the employer's share 65 per hour for persons employed as bartenders who customarily and 66 regularly receive gratuities. 67 (3) As used in this subsection "employer's share" means (A) six dollars 68 and thirty-eight cents per hour for persons, other than bartenders, who 69 are employed in the hotel and restaurant industry, including a hotel 70 restaurant, who customarily and regularly receive gratuities, and (B) 71 eight dollars and twenty-three cents per hour for persons employed as 72 bartenders who customarily and regularly receive gratuities. 73 (4) Notwithstanding any other law or regulation, any claim brought 74 under this subsection, section 31-68 as it relates to gratuities as part of 75 the minimum wage or section 31-62-E3 of the regulations of Connecticut 76 state agencies filed after September 24, 2022, shall be adjudicated, solely, 77 under section 31-60-2 of the regulations of Connecticut state agencies 78 effective on September 24, 2020, and any amendments thereto. 79 (e) On and after October 1, 2020, no employer may take any action to 80 displace an employee, including, but not limited to, a partial 81 Raised Bill No. 1177 LCO No. 5164 4 of 4 displacement of an employee, such as reducing the employee's hours, 82 wages or employment benefits, for purposes of hiring persons under the 83 age of eighteen years at a rate below the minimum fair wage. If the Labor 84 Commissioner determines that an employer has violated this 85 subsection, the commissioner shall suspend the employer's right to pay 86 the reduced rate for employees for a period of time specified in 87 regulations adopted pursuant to subsection (b) of this section.] 88 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2023 31-60 Statement of Purpose: To eliminate the subminimum wage in the state and create one minimum fair wage. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]