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 Section 31-60 of the general statutes is repealed and the 1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