Substitute Senate Bill No. 221 (sSB221 File No. 293) proposes significant changes to the minimum fair wage laws and service charge regulations in Connecticut, with an effective date of July 1, 2024. The bill eliminates certain exceptions to the minimum fair wage and overtime wage requirements, ensuring that employers who pay less than the mandated amounts will be in violation of the law. It also introduces a phased reduction in the percentage of the minimum fair wage that can be counted as gratuities for hotel and restaurant employees, leading to the elimination of gratuities as part of the minimum wage by July 1, 2027. The bill sets a schedule for increasing the minimum wage to fifteen dollars per hour by June 1, 2023, with subsequent annual adjustments based on the employment cost index. Additionally, the bill requires the Labor Commissioner to adopt regulations for various employment categories and allows for modifications in special cases to prevent undue hardship.

The bill also addresses service charges, making it an unfair or deceptive trade practice for restaurants to impose a service fee without prior disclosure to customers. It removes the provision allowing employers to pay minors under eighteen less than the minimum wage for the first ninety days of employment and prohibits the labor commissioner from setting lower wages for learners and apprentices. However, learners in vocational training programs may be paid a sub-minimum wage for up to 200 hours with the labor commissioner's permission, and similar permission is required for paying apprentices less than the minimum wage. The bill's fiscal impact includes potential costs for additional investigations and enforcement by the Department of Consumer Protection and the State Comptroller. The Labor and Public Employees Committee has given the bill a Joint Favorable Substitute, with a vote of 8 in favor and 4 against on March 19, 2024.

Statutes affected:
Raised Bill: 31-60, 31-58
LAB Joint Favorable Substitute: 31-60, 31-58
File No. 293: 31-60, 31-58