This post was co-authored by Labor + Employment Group lawyer Christopher Costain.
With fall approaching and school back in session, the end of 2025 is on the horizon. The beginning of the new calendar year serves as an opportune time for manufacturers to revisit their wage and hour practices for compliance with applicable state and federal law; below are several important reminders of such laws that may impact Connecticut employers.
Connecticut’s Minimum Wage Increasing to $16.94 Effective January 1, 2026
Beginning January 1, 2026, Connecticut’s minimum wage will increase from the current rate of $16.35 per hour to $16.94 per hour. The increased minimum wage is required pursuant to Public Act 19-4, which was signed by Governor Ned Lamont in 2019 and requires the state minimum wage to be adjusted annually based on data published by the U.S. Department of Labor. To prepare for the increase in minimum wage, manufacturers should determine which employees will need to receive an increase in their hourly rate to meet the new minimum wage and ensure new hires are receiving wages that are at or above minimum wage. Manufacturers with employees in multiple states should review applicable minimum wage laws to ensure compliance.
Lastly, manufacturers should ensure that their workplace posters reflect the correct minimum wage.
Exempt/Non-Exempt Status
Manufacturers should also consider conducting a review of employee salaries to ensure employees who are classified as exempt are making a salary that is at or above the salary threshold under applicable state and federal law. The current minimum salary that most executive, administrative, and professional workers must be paid in order to be exempt from the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA) is $684 per week or $35,568 annually. Additionally, manufacturers should be aware that in other states and locales, the minimum salary thresholds are significantly higher than the FLSA threshold (such as at $1,237.50 per week or $64,350 annually in New York City).
Permitted Payroll Deductions
Manufacturers in Connecticut should consider reviewing the deductions taken from employee wages to ensure they are either taking only those deductions allowed under federal or state law, such as federal and state income tax, or that they have received special permission from the Connecticut Department of Labor (CTDOL) to make a separate deduction, using the CTDOL’s approved form. Examples of other types of separate deductions include the costs to replace broken equipment, tools, or machinery, the cost for a required uniform, or other items necessary for employment.
Connecticut Paid Sick Leave Eligibility Expansion Continues in 2026
The Connecticut Paid Sick Leave law was amended significantly beginning January 1, 2025, expanding the scope of employers covered by the law, increasing the number of workers eligible for leave, and broadening the qualifying reasons for the use of leave, among other key changes. Currently, employers with 25 or more employees are subject to the law but starting January 1, 2026, employers with 11 or more employees in Connecticut will be subject to the law and in 2027, all employers in Connecticut will be subject to the law. To determine whether paid sick leave must be provided to workers beginning January 1, 2026, manufacturers should review their payroll for the week that contains January 1 to confirm whether they meet the 11-employee minimum threshold.
Manufacturers should consult competent employment counsel for assistance with ensuring compliance with these wage and hour and other important employment law issues.