- Minimum wage hike in Connecticut goes into effect on Tuesday, rising to $12 per hour
- Gov. Lamont rejects some business owners’ request to postpone the increase, part of incremental hikes to reach $15 per hour in 2023
- Measure will likely lead to some price increases, but also allow more spending power among low-wage employees
Connecticut’s minimum wage increased to $12 per hour on Tuesday as Governor Ned Lamont rejected calls by some business owners to postpone the hike due to more unstable economic conditions brought on by COVID-19. A state law in 2019 set a schedule for incremental increases to the minimum wage, ultimately raising it to $15 per hour on Oct. 15, 2023.
The law requires the legislature and governor to consider freezing the minimum wage increases if the state experiences two consecutive quarters of negative financial growth. The pandemic has created unique challenges for businesses due to several months of reduced revenue and the lack of new relief funds, prompting some businesses to argue that now is not a good time to increase payroll expenses. Lamont argues that many essential workers earn a minimum wage and that the increase is a crucial way to support them.
Some economists suggest that minimum wage increases provide an overall boost to the economy by giving low-wage workers more spending power. The wage hikes have also prompted some modest price increases, such as restaurant owners who say they’ll need to raise the cost of menu items.
The next increase to Connecticut’s minimum wage will go into effect on Aug. 1 of next year, when it will go up to $13 per hour.
