Lawmakers override vetoes; minimum wage, tip credit to rise
 

(July 11, 2008) The minimum wage in Connecticut will rise from the current $ 7.65 an hour to $8 on Jan. 1, 2009, and to $8.25 in 2010, because state lawmakers late last month overrode Gov. Rell’s veto of the increase.

Legislators also overturned the governor’s veto of raising the tip credit for bartenders and wait staff who make less than the state’s basic hourly rate. The gratuity allowance for service employees in the restaurant industry will increase to $2.48 per hour, up from the current $2.24 per hour.

With 101 votes needed to override a veto in the House, the final vote on the minimum wage was 102-39, with 13 members not voting. The vote on the tip credit was 101-39 in favor of the override, with 12 legislators not voting.

Twenty-four votes were needed in the Senate to override the vetoes. Two Republicans joined the 23 Senate Democrats to override both, for 25-9 votes on each.

An increase in the minimum wage affects not only the wages employers pay, but also associated costs, such as Social Security, unemployment tax and workers’ compensation payments. Companies in which all workers’ wages are tied to the minimum wage will also see increased costs, since all of their workers’ pay will have to be increased to maintain differentials.

Gov. Rell pointed out that the minimum wage hike would not only hurt Connecticut’s small businesses, who create most of the minimum wage jobs, but also dampen the state’s overall business climate.