LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01177-R01- SB.docx 1 of 4 General Assembly Substitute Bill No. 1177 January Session, 2023 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 Section 31-60 of the general statutes is repealed and the 1 following is substituted in lieu thereof (Effective October 1, 2023): 2 (a) [Except as provided in subdivision (5) of subsection (i) of section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] Any employer who pays or agrees to pay to an employee 4 less than the minimum fair wage or overtime wage shall be deemed in 5 violation 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, 13 as 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 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 Substitute Bill No. 1177 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01177- R01-SB.docx } 2 of 4 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 26 ending on June 30, 2019, equal to eighteen and one-half per cent of the 27 minimum fair wage per hour for persons employed as bartenders who 28 customarily and regularly receive gratuities, and (3) not to exceed 29 thirty-five cents per hour in any other industry, and shall also 30 recognize] deductions and allowances for the value of board, in the 31 amount of eighty-five cents for a full meal and forty-five cents for a 32 light meal, lodging, apparel or other items or services supplied by the 33 employer; and other special conditions or circumstances which may be 34 usual in a particular employer -employee relationship. The 35 commissioner may provide, in such regulations, modifications of the 36 minimum fair wage herein established [for learners and apprentices; 37 persons under the age of eighteen years; and] for such special cases or 38 classes of cases as the commissioner finds appropriate to prevent 39 curtailment of employment opportunities, avoid undue hardship and 40 safeguard the minimum fair wage herein established. Regulations in 41 effect on July 1, 1973, providing for a board deduction and allowance 42 in an amount differing from that provided in this section shall be 43 construed to be amended consistent with this section. 44 (c) Regulations adopted by the commissioner pursuant to 45 subsection (b) of this section which define executive, administrative 46 and professional employees shall be updated not later than October 1, 47 2000, and every four years thereafter, to specify that such persons shall 48 be compensated on a salary basis at a rate determined by the Labor 49 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 Substitute Bill No. 1177 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01177- R01-SB.docx } 3 of 4 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 56 Labor Commissioner shall also recognize, as part of the subminimum 57 wage established in subdivision (5) of subsection (i) of section 31-58, 58 gratuities in an amount equal to the difference between such 59 subminimum wage and the employer's share per hour for persons, 60 other than bartenders, who are employed in the hotel and restaurant 61 industry, including a hotel restaurant, who customarily and regularly 62 receive gratuities. 63 (2) Effective July 1, 2019, the Labor Commissioner shall recognize, as 64 part of the minimum fair wage, gratuities in an amount equal to the 65 difference between the minimum fair wage and the employer's share 66 per hour for persons employed as bartenders who customarily and 67 regularly receive gratuities. 68 (3) As used in this subsection "employer's share" means (A) six 69 dollars and thirty-eight cents per hour for persons, other than 70 bartenders, who are employed in the hotel and restaurant industry, 71 including a hotel restaurant, who customarily and regularly receive 72 gratuities, and (B) eight dollars and twenty-three cents per hour for 73 persons employed as bartenders who customarily and regularly 74 receive gratuities. 75 (4) Notwithstanding any other law or regulation, any claim brought 76 under this subsection, section 31-68 as it relates to gratuities as part of 77 the minimum wage or section 31-62-E3 of the regulations of 78 Connecticut state agencies filed after September 24, 2022, shall be 79 adjudicated, solely, under section 31-60-2 of the regulations of 80 Connecticut state agencies effective on September 24, 2020, and any 81 amendments thereto. 82 (e) On and after October 1, 2020, no employer may take any action 83 to displace an employee, including, but not limited to, a partial 84 Substitute Bill No. 1177 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2023SB-01177- R01-SB.docx } 4 of 5 displacement of an employee, such as reducing the employee's hours, 85 wages or employment benefits, for purposes of hiring persons under 86 the age of eighteen years at a rate below the minimum fair wage. If the 87 Labor Commissioner determines that an employer has violated this 88 subsection, the commissioner shall suspend the employer's right to pay 89 the reduced rate for employees for a period of time specified in 90 regulations adopted pursuant to subsection (b) of this section.] 91 Sec. 2. Subdivisions (5) and (6) of subsection (i) of section 31-58 of 92 the general statutes are repealed and the following is substituted in 93 lieu thereof (Effective October 1, 2023): 94 [(5) The rates for all persons under the age of eighteen years, except 95 emancipated minors, shall be not less than eighty-five per cent of the 96 minimum fair wage for the first ninety days of such employment, or 97 ten dollars and ten cents per hour, whichever is greater, and shall be 98 equal to the minimum fair wage thereafter, except in institutional 99 training programs specifically exempted by the commissioner.] 100 [(6)] (5) After two consecutive quarters of negative growth in the 101 state's real gross domestic product, as reported by the Bureau of 102 Economic Analysis of the United States Department of Commerce, the 103 Labor Commissioner shall report his or her recommendations, in 104 writing, to the Governor regarding whether any scheduled increases in 105 the minimum fair wage pursuant to this section should be suspended. 106 Upon receiving the report, the Governor may submit his or her 107 recommendations regarding the suspension of such minimum fair 108 wage increases to the General Assembly. 109 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2023 31-60 Sec. 2 October 1, 2023 31-58(i)(5) and (6) LAB Joint Favorable Subst. 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