CT minimum wage set to rise Jan. 1 due to labor cost increase

Connecticut’s minimum wage will increase again Jan. 1 to match the increasing cost of labor, Gov. Ned Lamont announced Friday. .

The state’s minimum wage for nontipped workers will increase at the beginning of next year to $16.35 per hour. The current rate is $15.69 per hour.

The change is required by a 2019 law “that connects the state’s minimum wage to economic indicators, specifically the percentage change in the federal employment cost index,” according to a release from the governor’s office. “Under that law, the minimum wage is required to be adjusted each year based on the U.S. Department of Labor’s calculation of the employment cost index for the twelve-month period ending on June 30 of the preceding year.”

The employment cost index, which measures the cost of labor, increased by 4.2% over the past 12 months, according to Connecticut Labor Commissioner Danté Bartolomeo. The increase warrants a $0.66 increase to the state’s minimum wage, the release said.

“This law that we enacted ensures that as the economy grows, the wages of low-income workers can grow with it,” Lamont said. “This is a fair, modest adjustment for workers who will invest their earnings right back into our economy and support local businesses in their communities.”

Lt. Gov, Susan Bysiewicz said the change is beneficial for Connecticut.

“The minimum wage was established to provide a fair, livable baseline of income for those who work,” Bysiewicz said. “But, for too long, while the nation’s economy grew, the income of minimum wage workers stayed flat, making already existing pay disparities even worse, especially for the already economically disadvantaged. This is a policy that benefits everyone and provides more financial security to families, especially women and people of color.”

According to the Current Population Survey as calculated by the U.S. Census Bureau and the U.S. Bureau of Labor Statistics, approximately 60% of minimum wage earners in Connecticut are women.