Connecticut 2024 Regular Session Status: In Committee

SB 221 — AN ACT CONCERNING THE MINIMUM FAIR WAGE AND SERVICE CHARGES.

Last action — FILE NO. 293

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

166 added · 26 removed

166 line(s) added, 26 removed.

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General Assembly Raised Bill No.
Senate General Assembly File No.
221 February Session, 2024 LCO No.
293 February Session, 2024 Substitute Senate Bill No.
1055 Referred to Committee on LABOR AND PUBLIC EMPLOYEES Introduced by:
221 Senate, April 8, 2024 The Committee on Labor and Public Employees reported through SEN.
(LAB) AN ACT CONCERNING GRATUITIES AS PART OF THE MINIMUM FAIR WAGE.
KUSHNER of the 24th Dist., Chairperson of the Committee on the part of the Senate, that the substitute bill ought to pass.
AN ACT CONCERNING THE MINIMUM FAIR WAGE AND SERVICE CHARGES.
[learners and apprentices, their number, proportion and length of service;] and piece rates in relation to time rates;
[learners and apprentices, their number, proportion and length of sSB221 / File No.
and shall recognize, as part of the minimum fair wage, gratuities in an amount [(1)] equal to (1) [twenty-nine and three-tenths per cent, and effective January 1, 2009, LCO No.
293 1 sSB221 File No.
1055 1 of 6 Raised Bill No.221 equal to thirty-one per cent of the minimum fair wage per hour, and effective January 1, 2014, equal to thirty-four and six-tenths per cent of the minimum fair wage per hour, and effective January 1, 2015, and ending on June 30, 2019, equal to thirty-six and eight-tenths per cent of the minimum fair wage per hour] effective July 1, 2024, thirty-four and two-tenths per cent of the minimum fair wage per hour, and effective July 1, 2025, twenty-two per cent of the minimum fair wage per hour, and effective July 1, 2026, and ending July 1, 2027, ten per cent of the minimum fair wage per hour for persons, other than bartenders, who are employed in the hotel and restaurant industry, including a hotel restaurant, who customarily and regularly receive gratuities, and (2) [equal to eight and two-tenths per cent, and effective January 1, 2009, equal to eleven per cent of the minimum fair wage per hour, and effective January 1, 2014, equal to fifteen and six-tenths per cent of the minimum fair wage per hour, and effective January 1, 2015, and ending onJune30,2019,equaltoeighteenandone-halfpercentoftheminimum fair wage per hour] effective July 1, 2024, twenty-one and eight-tenths per cent of the minimum fair wage per hour, and effective July 1, 2025, eleven per cent of the minimum fair wage per hour, and effective July 1, 2026, and ending July 1, 2027, eight and two-tenths per cent of the minimum fair wage per hour for persons employed as bartenders who customarily and regularly receive gratuities.
293 service;] and piece rates in relation to time rates;
and shall recognize, as part of the minimum fair wage, gratuities in an amount [(1)] equal to (1) [twenty-nine and three-tenths per cent, and effective January 1, 2009, equal to thirty-one per cent of the minimum fair wage per hour, and effective January 1, 2014, equal to thirty-four and six-tenths per cent of the minimum fair wage per hour, and effective January 1, 2015, and ending on June 30, 2019, equal to thirty-six and eight-tenths per cent of the minimum fair wage per hour] effective July 1, 2024, thirty-four and two-tenths per cent of the minimum fair wage per hour, and effective July 1, 2025, twenty-two per cent of the minimum fair wage per hour, and effective July 1, 2026, and ending July 1, 2027, ten per cent of the minimum fair wage per hour for persons, other than bartenders, who are employed in the hotel and restaurant industry, including a hotel restaurant, who customarily and regularly receive gratuities, and (2) [equal to eight and two-tenths per cent, and effective January 1, 2009, equal to eleven per cent of the minimum fair wage per hour, and effective January 1, 2014, equal to fifteen and six-tenths per cent of the minimum fair wage per hour, and effective January 1, 2015, and ending onJune30,2019,equaltoeighteenandone-halfpercentoftheminimum fair wage per hour] effective July 1, 2024, twenty-one and eight-tenths per cent of the minimum fair wage per hour, and effective July 1, 2025, eleven per cent of the minimum fair wage per hour, and effective July 1, 2026, and ending July 1, 2027, eight and two-tenths per cent of the minimum fair wage per hour for persons employed as bartenders who customarily and regularly receive gratuities.
The commissioner may provide, in such regulations, modifications of the minimum fair wage herein established for learners and apprentices;
The commissioner may provide, in such regulations, modifications of the minimum fair wage sSB221 / File No.
293 2 sSB221 File No.
293 herein established [for learners and apprentices;
and for such special cases or classes of cases as the commissioner finds appropriate to prevent curtailment of employment LCO No.
and] for such special cases or classes of cases as the commissioner finds appropriate to prevent curtailment of employment opportunities, avoid undue hardship and safeguard the minimum fair wage herein established.
1055 2 of 6 Raised Bill No.221 opportunities, avoid undue hardship and safeguard the minimum fair wage herein established.
(3)Asusedinthissubsection"employer'sshare"means(A)sixdollars and thirty-eight cents per hour for persons, other than bartenders, who are employed in the hotel and restaurant industry, including a hotel LCO No.
(3)Asusedinthissubsection"employer'sshare"means(A)sixdollars sSB221 / File No.
1055 3 of 6 Raised Bill No.221 restaurant, who customarily and regularly receive gratuities, and (B) eight dollars and twenty-three cents per hour for persons employed as bartenders who customarily and regularly receive gratuities.
293 3 sSB221 File No.
293 and thirty-eight cents per hour for persons, other than bartenders, who are employed in the hotel and restaurant industry, including a hotel restaurant, who customarily and regularly receive gratuities, and (B) eight dollars and twenty-three cents per hour for persons employed as bartenders who customarily and regularly receive gratuities.
(1)A wage ofnot less thansix dollarsand seventy centsper hour, and effective January 1, 2003, not less than six dollars and ninety cents per hour, and effective January 1, 2004, not less than seven dollars and ten cents per hour, and effective January 1, 2006, not less than seven dollars and forty cents per hour, and effective January 1, 2007, not less than sevendollarsandsixty-fivecentsperhour,andeffectiveJanuary1,2009, not less than eight dollars per hour, and effective January 1, 2010, not less than eight dollars and twenty-five cents per hour, and effective January 1, 2014, not less than eight dollars and seventy cents per hour, and effective January 1, 2015, not less than nine dollars and fifteen cents LCO No.
(1)A wage ofnot less thansix dollarsand seventy centsper hour, and effective January 1, 2003, not less than six dollars and ninety cents per hour, and effective January 1, 2004, not less than seven dollars and ten cents per hour, and effective January 1, 2006, not less than seven dollars and forty cents per hour, and effective January 1, 2007, not less than sevendollarsandsixty-fivecentsperhour,andeffectiveJanuary1,2009, not less than eight dollars per hour, and effective January 1, 2010, not less than eight dollars and twenty-five cents per hour, and effective sSB221 / File No.
1055 4 of 6 Raised Bill No.221 per hour, and effective January 1, 2016, not less than nine dollars and sixty cents per hour, and effective January 1, 2017, not less than ten dollars and ten cents per hour, and effective October 1, 2019, not less than eleven dollars per hour, and effective September 1, 2020, not less than twelve dollars per hour, and effective August 1, 2021, not less than thirteen dollars per hour, and effective July 1, 2022, not less than fourteen dollars per hour, and effective June 1, 2023, not less than fifteen dollars per hour.
293 4 sSB221 File No.
293 January 1, 2014, not less than eight dollars and seventy cents per hour, and effective January 1, 2015, not less than nine dollars and fifteen cents per hour, and effective January 1, 2016, not less than nine dollars and sixty cents per hour, and effective January 1, 2017, not less than ten dollars and ten cents per hour, and effective October 1, 2019, not less than eleven dollars per hour, and effective September 1, 2020, not less than twelve dollars per hour, and effective August 1, 2021, not less than thirteen dollars per hour, and effective July 1, 2022, not less than fourteen dollars per hour, and effective June 1, 2023, not less than fifteen dollars per hour.
(4) Whenever the highest federal minimum wage is increased, the minimum fair wage established under this part shall be increased to the amount of said federal minimum wage plus one-half of one per cent more than said federal rate, rounded to the nearest whole cent, effective on the same date as the increase in the highest federal minimum wage, and shall apply to all wage orders and administrative regulations then in force.
(4) Whenever the highest federal minimum wage is increased, the minimum fair wage established under this part shall be increased to the amount of said federal minimum wage plus one-half of one per cent more than said federal rate, rounded to the nearest whole cent, effective on the same date as the increase in the highest federal minimum wage, sSB221 / File No.
LCO No.
293 5 sSB221 File No.
1055 5 of 6 Raised Bill No.
293 and shall apply to all wage orders and administrative regulations then in force.
221 [(5) The rates for all persons under the age of eighteen years, except emancipated minors, shall be not less than eighty-five per cent of the minimum fair wage for the first ninety days of such employment, or ten dollars and ten cents per hour, whichever is greater, and shall be equal to the minimum fair wage thereafter, except in institutional training programs specifically exempted by the commissioner.] [(6)] (5) After two consecutive quarters of negative growth in the state's real gross domestic product, as reported by the Bureau of Economic Analysis of the United States Department of Commerce, the Labor Commissioner shall report his or her recommendations, in writing, to the Governor regarding whether any scheduled increases in the minimum fair wage pursuant to this section should be suspended.
[(5) The rates for all persons under the age of eighteen years, except emancipated minors, shall be not less than eighty-five per cent of the minimum fair wage for the first ninety days of such employment, or ten dollars and ten cents per hour, whichever is greater, and shall be equal to the minimum fair wage thereafter, except in institutional training programs specifically exempted by the commissioner.] [(6)] (5) After two consecutive quarters of negative growth in the state's real gross domestic product, as reported by the Bureau of Economic Analysis of the United States Department of Commerce, the Labor Commissioner shall report his or her recommendations, in writing, to the Governor regarding whether any scheduled increases in the minimum fair wage pursuant to this section should be suspended.
2 July 1, 2024 31-58(i) Sec.
2 July 1, 2024 31-58(i) July 1, 2024 Sec.
3 July 1, 2024 New section Statement of Purpose:
3 New section LAB Joint Favorable Subst.
To phase out the recognition of gratuities as part of the fair minimum wage.
sSB221 / File No.
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.
293 6 sSB221 File No.
1055 6 of 6
293 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
OFA Fiscal Note State Impact:
Agency Affected Fund-Effect FY 25 $ FY 26 $ Consumer Protection, Dept.
GF - Potential 71,000 71,000 Cost State Comptroller - Fringe GF - Potential 29,000 29,000 Benefits1 Cost Note:
GF=General Fund Municipal Impact:
Municipalities Effect FY 25 $ FY 26 $ Various Municipalities STATE Potential Potential MANDATE 2 - Cost Explanation Thebillmakesvariouschangestolaborlawsresultinginthepotential costs described below.
Section1, which phasesout therecognitionofgratuitiesaspart ofthe fair minimum wage, does not result in any fiscal impact to the Department of Labor (DOL) as the bill does not add additional tasks to DOL's Wage and Workplace Standards Division.
Section 2 results in a potential cost to municipalities beginning in FY 1The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.
The estimated active employee fringe benefit cost associated with most personnel changes is 41.25% of payroll in FY 25.
2State mandate is defined in Sec.
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2-32b(2) of the Connecticut General Statutes, "state mandate" means any state initiated constitutional, statutory or executive action that requires a local government to establish, expand or modify its activities in such a way as to necessitate additional expenditures from local revenues.
sSB221 / File No.
293 7 sSB221 File No.
293 to the extent that they employ unemancipated minors, learners, or apprentices.
The bill removes a provision that permitted employers to pay certain minors, learners, or apprentices below the minimum fair wage.
Removing this provision results in a cost to any municipality that employs these workers.
Section 3 makes it an unfair trade practice for a restaurant to charge a service fee to a customer without disclosing the fee's amount and purpose before the customer orders, resulting in a potential cost to the Department of Consumer Protection (DCP) and the State Comptroller beginning in FY 25.
To the extent this generates a significant increase in violationsthat DCPwillhave to investigate,the agency mayhavetohire one special investigator for an annual personal services cost of $71,000, along with associated fringe benefit costs of $29,000 per year.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and employee wage increases.
sSB221 / File No.
293 8 sSB221 File No.
293 OLR Bill Analysis sSB 221 AN ACT CONCERNING THE MINIMUM FAIR WAGE AND SERVICE CHARGES.
SUMMARY This bill phases out the state wage law’s “tip credit” provision between July 1, 2024, and July 1, 2027.
The provision generally allows employers to pay certain employees who customarily and regularly receive tips less than the minimum wage, using their tips to meet the remainder of the minimum wage requirement.
If the tips do not make up the difference, then the employer must cover it.
Under current law, the tip credit allows employers to pay hotel and restaurant staff as low as $6.38 per hour (40.7% of the current $15.69 minimum wage) and bartenders $8.23 per hour (52.5% of the current minimum).
The table below shows the bill’s phase-out schedule and percentage of the minimum wage employers must pay these employees under the bill’s revised tip credit provision.
By law, the minimum wage is adjusted for inflation at the start of each new calendar year.
Table:
Tip Credit Phase Out Under the Bill Effective Date Percentage of Minimum Wage Employer Must Pay Hotel and Restaurant Staff Bartenders Current law 40.7% 52.5% July 1, 2024 65.8% 78.2% July 1, 2025 78.0% 88.0% July 1, 2026 90.0% 91.8% July 1, 2027 100% 100% The bill also makes it an unfair or deceptive trade practice under the Connecticut Unfair Trade Practices Act (CUTPA) for a restaurant to sSB221 / File No.
293 9 sSB221 File No.
293 charge a service fee to a customer without disclosing the fee’s amount and purpose before the customer orders (see “BACKGROUND”).
Additionally, the bill removes provisions that currently allow (1) employers to pay unemancipated minors (under age 18) 85% of the minimum wage for their first 90 days of employment and (2) the labor commissioner to adopt regulations on modifying the minimum wage for learners and apprentices.
In doing so, the bill requires that the minors, learners, and apprentices be paid at least the full minimum wage.
Current regulations allow the labor commissioner to give written permission for learners and apprentices to be paid less than the minimum wage under certain conditions (see “BACKGROUND”).
Lastly, the bill makes conforming changes that, among other things, remove aprohibitiononemployersdisplacing employeesto hire minors at a sub-minimum wage.
EFFECTIVE DATE:
July 1, 2024 BACKGROUND Connecticut Unfair Trade Practices Act (CUTPA) The law prohibits businesses from engaging in unfair and deceptive acts or practices.
CUTPA allows the consumer protection commissioner to issue regulations defining what constitutes an unfair trade practice, investigate complaints, issue cease and desist orders, order restitution in cases involving less than $10,000, enter into consent agreements, ask the attorney general to seek injunctive relief, and accept voluntary statements of compliance.
It also allows individuals to sue.
Courts may issue restraining orders;
award actual and punitive damages, costs, and reasonable attorney’s fees;
and impose civil penalties of up to $5,000 for willful violations and $25,000 for violation of a restraining order (CGS § 42-110a et seq.).
Learners Under current regulations, “learners” are students in an established vocationaltraining program for anoccupation that is not apprenticeable but has a long training period.
They may be paid a sub-minimum wage sSB221 / File No.
293 10 sSB221 File No.
293 for up to 200 hours in an approved training program with written permission from the labor commissioner (Conn.
Agencies Regs., § 31- 60-7).
Apprentices Under current regulations, an “apprentice” is someone at least age 16 who is employed to learn a skilled trade in a bona fide apprentice program approved by the Connecticut State Apprenticeship Council.
An employer must have permission from the labor commissioner for each apprentice paid less than the minimum wage (Conn.
Agencies Regs., § 31-60-8).
Related Bill sHB 5236, § 25, favorably reported by the General Law Committee, among other things, allows the Department of Consumer Protection to impose a civil penalty of up to $5,000 for CUTPA violations, after an administrative hearing.
COMMITTEE ACTION Labor and Public Employees Committee Joint Favorable Substitute Yea 8 Nay 4 (03/19/2024) sSB221 / File No.
293 11
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Action History

  1. FILE NO. 293

  2. SENATE CALENDAR NUMBER 202

  3. FAV. RPT., TAB. FOR CAL., SEN.

  4. RPTD. OUT OF LCO

  5. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/08/24

  6. FILED WITH LCO

  7. Joint Favorable Substitute

  8. PUBLIC HEARING 0227

  9. REF. TO JOINT COMM. ON Labor and Public Employees

Sponsors

  • David Michel · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 186 not signed on

Sponsors (1)

  • David Michel

Co-sponsors (0)

None.

Not signed on (186)

186 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors SB 221?
SB 221 is sponsored by David Michel.
What is the current status of SB 221?
This bill died with 2024 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 221?
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