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U.S. Master™ Payroll Guide, 2008 Edition
Everything you need to know about payroll, from employers and their obligations, to payroll withholding and tax deposits, to payroll management and administration issues.

Connecticut General Assembly overrides governor's veto of minimum wage increase

The Connecticut General Assembly voted June 23, 2008, to override Governor M. Jodi Rell's (R) veto of legislation that will raise the state's minimum wage from $7.65 to $8.00 beginning January 1, 2009, and to $8.25 beginning January 1, 2010. In addition to overriding the minimum wage legislation (H.B. 5105), the General Assembly also voted to override the governor's veto of a companion bill (S.B. 55) that will increase the minimum wage tip credit for bartenders and waitstaff. As a way to offset the minimum wage increase S.B. 55 will allow hotels and restaurants to pay service employees and bartenders who customarily and regularly receive tips less than minimum wage, as long as tips make up the difference.

Rell had vetoed the minimum wage legislation on May 27, stating that even though "families, particularly low income families, have been hurt by our strained economy," Connecticut employers face similar pressures during an economic downturn. "We must not lose sight of the integral role that employers play in sustaining our economy, or the fact that, without employers, there are no jobs," Governor Rell said. "It is not a minimum wage increase that will support our families--it is a thriving economy, accomplished through a business-friendly environment with successful employers and reasonably priced consumer goods and services." Governor Rell signed the last increase in the minimum wage two years ago. Connecticut's current minimum wage of $7.65 per hour is well above the federal minimum, which is $5.85 per hour.

The House, which needed a two-thirds majority (at least 101 votes) to override the veto, passed the override with one vote to spare. The final vote was 102-39. Similarly, the Senate, which needed a minimum 24 votes for the veto override, passed the override in a 25-9 vote. The override will make Connecticut's minimum wage among the highest in the country. According to the US Department of Labor, Washington currently has the highest minimum wage rate, at $8.07 an hour. A summary of the various minimum wage rates in the states can be found at: http://www.dol.gov/esa/minwage/america.htm.

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