April 28, 2008 |
2008-R-0285 | |
CONNECTICUT EMPLOYEES EARNING THE MINIMUM WAGE | ||
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By: John Moran, Principal Analyst |
You asked how many employees in the state earn the minimum wage of $7.65 an hour.
In 2007, approximately 65,000 employees in Connecticut were paid at or below the minimum wage of $7.65 an hour, according to the state Labor Department. This is 3.5% of the approximately 1,865,000 total employed workers in the state, or 7% of the approximately 923,000 hourly rate workers.
The department estimates there are about:
● 28,000 workers in the state earning $6.99 an hour or less, and
● 37,000 workers earning between $7.00 and $7.65.
Several laws permit employers to pay less than minimum wage. These affect mainly wait staff and people with disabilities.
The state tip credit law for waiters and waitress allows employers to pay these workers 29% less than the state minimum wage (or $5.41 per hour using the current minimum). This is permitted as long as the employee's tips bring his or her wage up to at least $7.65 an hour. If the tips do not make up that difference, the employer must pay the full $7.65 an hour. There are approximately 25,880 waiters and waitresses in Connecticut, according to federal DOL Bureau of Labor Statistics 2006 Employment and Wages survey.
State law allows people with disabilities to be paid less than minimum wage if they are working in a noncompetitive setting.
The law also permits minors (1) working in agriculture or government to be paid 85% of the minimum wage and (2) working in other industries to be paid 85% of the minimum for the employee's first 200 hours on the job.
JM:ts