Connecticut 2024 Regular Session

Connecticut Senate Bill SB00221 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	LCO 1 of 6
	3	+	LCO No. 1055 1 of 6
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5		-	General Assembly ~~Substitute~~ Bill No. 221
	5	+	General Assembly Raised Bill No. 221
6	6		February Session, 2024
	7	+	LCO No. 1055
	8	+
	9	+
	10	+	Referred to Committee on LABOR AND PUBLIC EMPLOYEES
	11	+
	12	+
	13	+	Introduced by:
	14	+	(LAB)
7	15
8	16
9	17
10	18
11		-	AN ACT CONCERNING THE MINIMUM ~~FAIR WAGE AND SERVICE~~
12		-	~~CHARGES~~.
	19	+	AN ACT CONCERNING GRATUITIES AS PART OF THE MINIMUM
	20	+	FAIR WAGE.
13	21		Be it enacted by the Senate and House of Representatives in General
14	22		Assembly convened:
15	23
16	24		Section 1. Section 31-60 of the general statutes is repealed and the 1
17	25		following is substituted in lieu thereof (Effective July 1, 2024): 2
18	26		(a) [Except as provided in subdivision (5) of subsection (i) of section 3
19	27		31-58, any] Any employer who pays or agrees to pay to an employee 4
20	28		less than the minimum fair wage or overtime wage shall be deemed in 5
21	29		violation of the provisions of this part. 6
22	30		(b) The Labor Commissioner shall adopt such regulations, in 7
23	31		accordance with the provisions of chapter 54, as may be appropriate to 8
24	32		carry out the purposes of this part. Such regulations may include, but 9
25	33		are not limited to, regulations defining and governing an executive, 10
26	34		administrative or professional employee and outside salesperson; 11
27	35		[learners and apprentices, their number, proportion and length of 12
28	36		service;] and piece rates in relation to time rates; and shall recognize, as 13
29	37		part of the minimum fair wage, gratuities in an amount [(1)] equal to (1) 14
30		-	[twenty-nine and three-tenths per cent, and effective January 1, 2009, 15
	38	+	[twenty-nine and three-tenths per cent, and effective January 1, 2009, 15 Raised Bill No. 221
	39	+
	40	+
	41	+
	42	+	LCO No. 1055 2 of 6
	43	+
31	44		equal to thirty-one per cent of the minimum fair wage per hour, and 16
32	45		effective January 1, 2014, equal to thirty-four and six-tenths per cent of 17
33	46		the minimum fair wage per hour, and effective January 1, 2015, and 18
34		-	ending on June 30, 2019, equal to thirty-six and eight-tenths per cent of 19 Substitute Bill No. 221
35		-
36		-
37		-	LCO 2 of 6
38		-
	47	+	ending on June 30, 2019, equal to thirty-six and eight-tenths per cent of 19
39	48		the minimum fair wage per hour] effective July 1, 2024, thirty-four and 20
40	49		two-tenths per cent of the minimum fair wage per hour, and effective 21
41	50		July 1, 2025, twenty-two per cent of the minimum fair wage per hour, 22
42	51		and effective July 1, 2026, and ending July 1, 2027, ten per cent of the 23
43	52		minimum fair wage per hour for persons, other than bartenders, who 24
44	53		are employed in the hotel and restaurant industry, including a hotel 25
45	54		restaurant, who customarily and regularly receive gratuities, and (2) 26
46	55		[equal to eight and two-tenths per cent, and effective January 1, 2009, 27
47	56		equal to eleven per cent of the minimum fair wage per hour, and 28
48	57		effective January 1, 2014, equal to fifteen and six-tenths per cent of the 29
49	58		minimum fair wage per hour, and effective January 1, 2015, and ending 30
50	59		on June 30, 2019, equal to eighteen and one-half per cent of the minimum 31
51	60		fair wage per hour] effective July 1, 2024, twenty-one and eight-tenths 32
52	61		per cent of the minimum fair wage per hour, and effective July 1, 2025, 33
53	62		eleven per cent of the minimum fair wage per hour, and effective July 1, 34
54	63		2026, and ending July 1, 2027, eight and two-tenths per cent of the 35
55	64		minimum fair wage per hour for persons employed as bartenders who 36
56	65		customarily and regularly receive gratuities. [, and (3) not to exceed 37
57	66		thirty-five cents per hour in any other industry, and shall also recognize] 38
58	67		On and after July 1, 2027, no gratuities shall be recognized by the Labor 39
59	68		Commissioner as part of the minimum fair wage. The Labor 40
60	69		Commissioner shall also recognize as part of the minimum fair wage 41
61	70		deductions and allowances for the value of board, in the amount of 42
62	71		eighty-five cents for a full meal and forty-five cents for a light meal, 43
63	72		lodging, apparel or other items or services supplied by the employer; 44
64	73		and other special conditions or circumstances which may be usual in a 45
65	74		particular employer-employee relationship. The commissioner may 46
66	75		provide, in such regulations, modifications of the minimum fair wage 47
67		-	herein established [for learners and apprentices; persons under the age 48
68		-	of eighteen years; and] for such special cases or classes of cases as the 49
69		-	commissioner finds appropriate to prevent curtailment of employment 50
	76	+	herein established for learners and apprentices; persons under the age 48
	77	+	of eighteen years; and for such special cases or classes of cases as the 49
	78	+	commissioner finds appropriate to prevent curtailment of employment 50 Raised Bill No. 221
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	80	+
	81	+
	82	+	LCO No. 1055 3 of 6
	83	+
70	84		opportunities, avoid undue hardship and safeguard the minimum fair 51
71	85		wage herein established. Regulations in effect on July 1, 1973, providing 52
72	86		for a board deduction and allowance in an amount differing from that 53
73		-	provided in this section shall be construed to be amended consistent 54 Substitute Bill No. 221
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75		-
76		-	LCO 3 of 6
77		-
	87	+	provided in this section shall be construed to be amended consistent 54
78	88		with this section. 55
79	89		(c) Regulations adopted by the commissioner pursuant to subsection 56
80	90		(b) of this section which define executive, administrative and 57
81	91		professional employees shall be updated not later than October 1, 2000, 58
82	92		and every four years thereafter, to specify that such persons shall be 59
83	93		compensated on a salary basis at a rate determined by the Labor 60
84	94		Commissioner. 61
85	95		(d) (1) Effective July 1, 2019, and ending July 1, 2024, the Labor 62
86	96		Commissioner shall recognize, as part of the minimum fair wage, 63
87	97		gratuities in an amount equal to the difference between the minimum 64
88	98		fair wage and the employer's share per hour for persons, other than 65
89	99		bartenders, who are employed in the hotel and restaurant industry, 66
90	100		including a hotel restaurant, who customarily and regularly receive 67
91	101		gratuities. [The Labor Commissioner shall also recognize, as part of the 68
92	102		subminimum wage established in subdivision (5) of subsection (i) of 69
93	103		section 31-58, gratuities in an amount equal to the difference between 70
94	104		such subminimum wage and the employer's share per hour for persons, 71
95	105		other than bartenders, who are employed in the hotel and restaurant 72
96	106		industry, including a hotel restaurant, who customarily and regularly 73
97	107		receive gratuities.] 74
98	108		(2) Effective July 1, 2019, and ending July 1, 2024, the Labor 75
99	109		Commissioner shall recognize, as part of the minimum fair wage, 76
100	110		gratuities in an amount equal to the difference between the minimum 77
101	111		fair wage and the employer's share per hour for persons employed as 78
102	112		bartenders who customarily and regularly receive gratuities. 79
103	113		(3) As used in this subsection "employer's share" means (A) six dollars 80
104	114		and thirty-eight cents per hour for persons, other than bartenders, who 81
105		-	are employed in the hotel and restaurant industry, including a hotel 82
	115	+	are employed in the hotel and restaurant industry, including a hotel 82 Raised Bill No. 221
	116	+
	117	+
	118	+
	119	+	LCO No. 1055 4 of 6
	120	+
106	121		restaurant, who customarily and regularly receive gratuities, and (B) 83
107	122		eight dollars and twenty-three cents per hour for persons employed as 84
108	123		bartenders who customarily and regularly receive gratuities. 85
109		-	(4) Notwithstanding any other law or regulation, any claim brought 86 Substitute Bill No. 221
110		-
111		-
112		-	LCO 4 of 6
113		-
	124	+	(4) Notwithstanding any other law or regulation, any claim brought 86
114	125		under this subsection, section 31-68 as it relates to gratuities as part of 87
115	126		the minimum wage or section 31-62-E3 of the regulations of Connecticut 88
116	127		state agencies filed after September 24, 2022, shall be adjudicated, solely, 89
117	128		under section 31-60-2 of the regulations of Connecticut state agencies 90
118	129		effective on September 24, 2020, and any amendments thereto. 91
119	130		[(e) On and after October 1, 2020, no employer may take any action 92
120	131		to displace an employee, including, but not limited to, a partial 93
121	132		displacement of an employee, such as reducing the employee's hours, 94
122	133		wages or employment benefits, for purposes of hiring persons under the 95
123	134		age of eighteen years at a rate below the minimum fair wage. If the Labor 96
124	135		Commissioner determines that an employer has violated this 97
125	136		subsection, the commissioner shall suspend the employer's right to pay 98
126	137		the reduced rate for employees for a period of time specified in 99
127	138		regulations adopted pursuant to subsection (b) of this section.] 100
128	139		Sec. 2. Subsection (i) of section 31-58 of the general statutes is repealed 101
129	140		and the following is substituted in lieu thereof (Effective July 1, 2024): 102
130	141		(i) "Minimum fair wage" in any industry or occupation in this state 103
131	142		means: 104
132	143		(1) A wage of not less than six dollars and seventy cents per hour, and 105
133	144		effective January 1, 2003, not less than six dollars and ninety cents per 106
134	145		hour, and effective January 1, 2004, not less than seven dollars and ten 107
135	146		cents per hour, and effective January 1, 2006, not less than seven dollars 108
136	147		and forty cents per hour, and effective January 1, 2007, not less than 109
137	148		seven dollars and sixty-five cents per hour, and effective January 1, 2009, 110
138	149		not less than eight dollars per hour, and effective January 1, 2010, not 111
139	150		less than eight dollars and twenty-five cents per hour, and effective 112
140	151		January 1, 2014, not less than eight dollars and seventy cents per hour, 113
141		-	and effective January 1, 2015, not less than nine dollars and fifteen cents 114
	152	+	and effective January 1, 2015, not less than nine dollars and fifteen cents 114 Raised Bill No. 221
	153	+
	154	+
	155	+
	156	+	LCO No. 1055 5 of 6
	157	+
142	158		per hour, and effective January 1, 2016, not less than nine dollars and 115
143	159		sixty cents per hour, and effective January 1, 2017, not less than ten 116
144	160		dollars and ten cents per hour, and effective October 1, 2019, not less 117
145		-	than eleven dollars per hour, and effective September 1, 2020, not less 118 Substitute Bill No. 221
146		-
147		-
148		-	LCO 5 of 6
149		-
	161	+	than eleven dollars per hour, and effective September 1, 2020, not less 118
150	162		than twelve dollars per hour, and effective August 1, 2021, not less than 119
151	163		thirteen dollars per hour, and effective July 1, 2022, not less than 120
152	164		fourteen dollars per hour, and effective June 1, 2023, not less than fifteen 121
153	165		dollars per hour. On October 15, 2023, and on each October fifteenth 122
154	166		thereafter, the Labor Commissioner shall announce the adjustment in 123
155	167		the minimum fair wage which shall become the new minimum fair 124
156	168		wage and shall be effective on January first immediately following. On 125
157	169		January 1, 2024, and not later than each January first thereafter, the 126
158	170		minimum fair wage shall be adjusted by the percentage change in the 127
159	171		employment cost index, or its successor index, for wages and salaries 128
160	172		for all civilian workers, as calculated by the United States Department 129
161	173		of Labor, over the twelve-month period ending on June thirtieth of the 130
162	174		preceding year, rounded to the nearest whole cent. 131
163	175		(2) In no event shall the minimum fair wage be less than the amount 132
164	176		established under subdivision (1) of this subsection, or one-half of one 133
165	177		per cent rounded to the nearest whole cent more than the highest federal 134
166	178		minimum wage, whichever is greater, except as may otherwise be 135
167	179		established in accordance with the provisions of this part. 136
168	180		(3) All wage orders in effect on October 1, 1971, wherein a lower 137
169	181		minimum fair wage has been established, are amended to provide for 138
170	182		the payment of the minimum fair wage herein established except as 139
171	183		hereinafter provided. 140
172	184		(4) Whenever the highest federal minimum wage is increased, the 141
173	185		minimum fair wage established under this part shall be increased to the 142
174	186		amount of said federal minimum wage plus one-half of one per cent 143
175	187		more than said federal rate, rounded to the nearest whole cent, effective 144
176	188		on the same date as the increase in the highest federal minimum wage, 145
177	189		and shall apply to all wage orders and administrative regulations then 146
178		-	in force. 147
	190	+	in force. 147 Raised Bill No. 221
	191	+
	192	+
	193	+
	194	+	LCO No. 1055 6 of 6
	195	+
179	196		[(5) The rates for all persons under the age of eighteen years, except 148
180	197		emancipated minors, shall be not less than eighty-five per cent of the 149
181		-	minimum fair wage for the first ninety days of such employment, or ten 150 Substitute Bill No. 221
182		-
183		-
184		-	LCO 6 of 6
185		-
	198	+	minimum fair wage for the first ninety days of such employment, or ten 150
186	199		dollars and ten cents per hour, whichever is greater, and shall be equal 151
187	200		to the minimum fair wage thereafter, except in institutional training 152
188	201		programs specifically exempted by the commissioner.] 153
189	202		[(6)] (5) After two consecutive quarters of negative growth in the 154
190	203		state's real gross domestic product, as reported by the Bureau of 155
191	204		Economic Analysis of the United States Department of Commerce, the 156
192	205		Labor Commissioner shall report his or her recommendations, in 157
193	206		writing, to the Governor regarding whether any scheduled increases in 158
194	207		the minimum fair wage pursuant to this section should be suspended. 159
195	208		Upon receiving the report, the Governor may submit his or her 160
196	209		recommendations regarding the suspension of such minimum fair wage 161
197	210		increases to the General Assembly. 162
198	211		Sec. 3. (NEW) (Effective July 1, 2024) It shall be an unfair or deceptive 163
199	212		trade practice, in violation of chapter 735a of the general statutes, for 164
200	213		any restaurant to charge a service fee to a customer without disclosing 165
201	214		the existence, amount and purpose of such service fee to the customer 166
202	215		prior to such customer ordering from the restaurant. 167
203	216		This act shall take effect as follows and shall amend the following
204	217		sections:
205	218
206	219		Section 1 July 1, 2024 31-60
207	220		Sec. 2 July 1, 2024 31-58(i)
208	221		Sec. 3 July 1, 2024 New section
209	222
210		-	LAB Joint Favorable Subst.
	223	+	Statement of Purpose:
	224	+	To phase out the recognition of gratuities as part of the fair minimum
	225	+	wage.
	226	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	227	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	228	+	underlined.]
211	229