State’s Minimum Wage Will Increase 3.2% in 2027

Connecticut’s hourly minimum wage will increase 3.2% to $17.48 from Jan. 1, 2027.

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. Since 2019, the minimum wage has risen 68%.

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, with the minimum wage rising 3.6% to $16.94.

Connecticut’s minimum wage is currently the fourth highest in the U.S. after the District of Columbia ($18.40), Washington ($17.13), and New York City and New York’s Nassau, Suffolk, and Westchester counties ($17).

High-Wage State

In June 2026, average private sector hourly earnings in Connecticut stood at $39.78, the fifth highest of any state.

CBIA president and CEO Chris DiPentima said Connecticut was among the top five states for wages and wage growth.

“The challenge for many small businesses is the ripple effect those increases create throughout their workforce, adding pressure to labor costs at every level of the organization,” DiPentima said.

“While Connecticut workers already earn some of the highest wages in the country, many families still struggle with the cost of necessities like housing, healthcare, energy and childcare.

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

“To solve our workforce challenges, it’s critical that policymakers focus on making Connecticut a more affordable place to live, work, and do business.”

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.

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

Georgia and Wyoming have the lowest hourly wage—$5.15—with another 18 states at $7.25, which is the federal minimum wage for covered nonexempt employees.

Employer Obligations

Connecticut employers are legally obligated to pay employees the new hourly wage of $17.48 on and after Jan. 1, 2027, which falls on a Friday.

This means employers can choose to pay employees $16.94 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 $17.48 on and after Jan. 1, 2027.

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 must be paid at least $16.94—increasing to $17.48 next year—including gratuities.

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