What Is Connecticut’s Minimum Wage: Current Rates and Requirements Explained

Connecticut’s minimum wage is a key economic factor for both workers and businesses in the state. Currently set at $15.69 per hour, Connecticut’s minimum wage will increase to $16.35 per hour on January 1, 2025, continuing the state’s commitment to providing livable wages for its workforce. This upcoming increase is part of a schedule established by Public Act 19-4, signed by Governor Ned Lamont in 2019, which cleverly connects the state’s minimum wage to economic indicators.

The minimum wage journey in Connecticut has been steady and deliberate. The state has implemented gradual increases over recent years, moving from $11 in 2019 to the current $15.69. This rate significantly exceeds the federal minimum wage of $7.25 per hour, demonstrating Connecticut’s progressive approach to worker compensation and economic justice.

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Connecticut’s Minimum Wage Overview

Connecticut maintains one of the highest minimum wage rates in the United States, with a structured increase schedule that reflects the state’s commitment to worker compensation. The minimum wage system includes regular adjustments based on economic indicators.

Legislative Background

Connecticut’s current minimum wage structure stems from Public Act 19-4, signed into law by Gov. Ned Lamont in 2019. This landmark legislation established a gradual increase schedule to raise the state’s minimum wage.

The law marked a significant change from previous approaches by implementing annual increases and eventually tying the minimum wage to economic indicators. Before this legislation, Connecticut’s minimum wage had seen less frequent adjustments.

Public Act 19-4 also established that once the minimum wage reached $15 per hour, future increases would be determined by the Employment Cost Index. This economic measure helps ensure wages keep pace with broader economic conditions.

The Connecticut Department of Labor oversees the implementation of these wage standards, with Commissioner Danté Bartolomeo’s office managing compliance across the state.

Current and Future Rates

As of February 2025, Connecticut’s minimum wage stands at $15.69 per hour, significantly higher than the Federal Minimum Wage of $7.25 per hour. Workers in Connecticut are entitled to the higher state rate.

The next scheduled increase will take effect on January 1, 2025, when the minimum wage will rise to $16.35 per hour. This puts Connecticut among states with the highest minimum wages nationwide, though still below Washington D.C.’s $17.50 rate.

The minimum wage increase schedule has followed this pattern:

October 1, 2019: $11.00 per hour
September 1, 2020: $12.00 per hour
August 1, 2021: $13.00 per hour
July 1, 2022: $14.00 per hour

These increases apply to most employees in Connecticut, with some exceptions for tipped workers, certain student employees, and other exempt occupations as defined by state law.

Economic Impact of Wage Adjustments

Connecticut’s minimum wage changes have far-reaching effects on both workers and the broader economy. The scheduled increases and indexing to the Employment Cost Index create ripple effects throughout the state’s economic landscape.

Effect on Low-Income Workers

The rising minimum wage in Connecticut has provided tangible benefits for many low-income workers. With the wage set to increase to $16.35 per hour in 2025, these workers will see a 66-cent hourly increase from the current rate.

This represents meaningful financial relief for many families. According to data from the U.S. Census Bureau and Current Population Survey, minimum wage earners in Connecticut have experienced improved purchasing power since the state began its scheduled increases.

However, these gains face challenges from rising costs of living. Many workers report that despite earning more, their financial situations remain precarious as housing, food, and transportation costs increase.

The Connecticut Labor Commissioner has noted that these adjustments help reduce income inequality while providing workers with more economic stability and reduced reliance on public assistance programs.

Correlation with Economic Indicators

Minimum wage increases correlate with several key economic indicators tracked by the U.S. Bureau of Labor Statistics. Connecticut’s approach of tying wage increases to the Employment Cost Index creates a more predictable environment for businesses planning their labor costs.

Studies have shown mixed effects on employment levels. While some economic policy discussions suggest potential job losses, Connecticut’s unemployment rates have not shown significant negative impacts following wage increases.

Consumer spending typically rises following minimum wage increases, benefiting local businesses. This creates a multiplier effect as low-income workers tend to spend higher percentages of their earnings in their local communities.

Business adaptation has been notable. Many employers have: