Whether you are new to business or a veteran, you need to pay attention to the current labor laws in Connecticut. The legislators made several changes to the law in recent years.
Here are a few of the labor laws you should know.
Classifying and paying workers
You must correctly classify your workers for tax, overtime and benefits purposes. Employees come in three basic types:
- Independent contractors – Similar to freelance employees, contractors must pay self-employment tax. In this case, you are not responsible for their taxes but still need to report their earnings.
- Exempt employees – These workers do not receive overtime but must pass the duties and salary tests.
- Non-exempt employees – These employees receive overtime according to Connecticut law.
Paying attention to the minimum wage increases is important when looking at wage laws. For example, the minimum wage was $13.00 per hour for 2021, $14.00 per hour for 2022 and $15.00 per hour for 2023.
Hiring and recruiting employees
Two of the most important hiring and recruiting requirements are:
- With Connecticut’s Ban the Box law, you cannot inquire about prior arrests, criminal charges or convictions on a new application unless the position requires a fidelity or surety bond or you are otherwise required by law to inquire.
- You must report a new hire to the state within 20 days of the date you hire that worker.
- During the recruiting process, you must provide the wage range for the position when the applicant asks for it or before you make an offer.
As a Connecticut employer, you can face serious consequences from employees and the Internal Revenue Service if you do not keep up with the new state and federal laws.