Jan. 1 Brings 3.6% Minimum Wage Increase

Connecticut’s hourly minimum wage increased 3.6% to $16.94 on Jan. 1, 2026.

A state law enacted in 2019 implemented five annual increases in the hourly wage and tied future yearly increases to the U.S. Department of Labor’s Employment Cost Index.

The last of those five statutory increases took effect in 2023, when the hourly wage hit $15.

Future increases are calculated based on the change in the ECI “over the 12-month period ending June 30 of the preceding year, rounded to the nearest whole cent.”

The third of those indexed increases took effect Jan. 1 this year.

High-Wage State

Connecticut was one of 23 states that raised the minimum wage for 2026.

At $17.95, the District of Columbia has the country’s highest minimum wage, followed by Washington state ($17.13), and New York City and Nassau, Suffolk, and Westchester counties ($17), while California cities and towns range from $16.90 to $19.60.

In September 2025, average private sector hourly earnings in Connecticut stood at $39.24.

Fifteen states link annual changes in the minimum wage to various indexes, with Virginia (2026), Nebraska (2027), and Florida (2028) all scheduled to follow suit over the next three years.

Twenty states set the hourly wage at $7.25, which is the federal minimum wage for covered nonexempt employees.

As of September 2025, average private sector hourly earnings in Connecticut stood at $39.24, up 2.5% year-over-year.

Labor Force Impact

The regular minimum wage increases have not helped drive labor force growth in Connecticut, which ranked 41st among all states for job growth as of September.

Connecticut’s labor force—those working and actively looking for work—is down by more than 8,000 year-over-year and has grown just 0.7% over pre-pandemic levels, compared to 4.2% nationally.

“There’s a greater picture of affordability here in Connecticut.”

CBIA’s Chris Davis

“We haven’t really been seeing the impact on labor force growth that some of the proponents argued when this change got passed,” CBIA’s Chris Davis told Hearst Connecticut Media.

“There’s a greater picture of affordability here in Connecticut and a need to encourage people to be in the workforce by lowering the cost of living, whether that be through tax reform, better housing, or lowering childcare costs.”

Connecticut’s cost of living is among the highest in the country, driven by the state’s tax burden and high energy, housing, and childcare costs.

Employer Obligations

Connecticut employers are legally obligated to pay employees the new hourly wage of $16.94 on and after Jan. 1, 2026.

This means employers can choose to pay employees $16.35 for every hour leading up to Jan. 1, but must adjust payroll from that date.

Employers are legally obligated to pay the new hourly wage of $16.94 on and after Jan. 1, 2026.

Connecticut law includes a $6.38 minimum wage for tipped workers, which includes restaurant waiters, and the $8.23 minimum for bartenders.

However, those tipped employees now must be paid at least $16.94 an hour—including gratuities.

State law also includes a 90-day, $10.10 hourly training wage for 16- and 17-year-old workers.