Researcher: LRH Page 1 4/5/23
OLR Bill Analysis
sSB 1177
AN ACT CONCERNING ONE FAIR WAGE.
SUMMARY
This bill removes the law’s “tip credit” provision, which currently
allows employers to pay hotel and restaurant staff and bartenders who
customarily receive tips less than the minimum wage, as long as their
tips make up the difference. Under current law, the tip credit allows
employers to pay hotel and restaurant staff $6.38 per hour and
bartenders $8.23 per hour, as long as their tips make up the rest of the
minimum wage requirement (currently $14.00 per hour). Removing the
tip credit requires employers to pay these employees at least the full
minimum wage. By law, the minimum wage increases to $15.00 per
hour on June 1, 2023, and then beginning January 1, 2024, it will be
annually adjusted based on changes to the federal employment cost
index (CGS § 31-58).
The bill also removes provisions that allow employers, under certain
conditions, to pay less than the minimum wage to learners, apprentices,
and people under age 18 (minors) unless they are emancipated minors.
In doing so, the bill similarly requires that learners, apprentices, and
unemancipated minors be paid at least the full minimum wage. Under
current law, unemancipated minors may generally be paid as low as
85% of the minimum wage for their first 90 days of employment.
Lastly, the bill makes conforming changes to remove provisions that
(1) specify how certain tip-credit-related lawsuits must be adjudicated
and (2) prohibit employers from displacing employees to hire minors at
a sub-minimum wage.
EFFECTIVE DATE: October 1, 2023
BACKGROUND 2023SB-01177-R000448-BA.DOCX
Researcher: LRH Page 2 4/5/23
Learners
Under current regulations, “learners” are students in an established
vocational training program for an occupation that is not apprenticeable
but has a long training period. They may be paid a sub-minimum wage
for up to 200 hours in an approved training program with written
permission from the labor commissioner (Conn. Agencies Regs., § 31-
60-7).
Apprentices
Under current regulations, an “apprentice” is someone at least age 16
who is employed to learn a skilled trade in a bona fide apprentice
program approved by the Connecticut State Apprenticeship Council.
An employer must have permission from the labor commissioner for
each apprentice paid less than the minimum wage (Conn. Agencies
Regs., § 31-60-8).
COMMITTEE ACTION
Labor and Public Employees Committee
Joint Favorable Substitute
Yea 8 Nay 4 (03/21/2023)