By Mark Adams
Connecticut’s 2026 Minimum Wage Increase
Starting January 1, 2026, Connecticut’s minimum wage will rise from $16.35 to $16.94 per hour—a 3.6% increase—marking one of the highest in the nation and positioning CT as the second-highest state minimum wage after Washington. This adjustment flows from Public Act 19‑4, enacted in 2019, which ties the annual wage adjustment to the federal Employment Cost Index (ECI).
For full-time workers (40 hrs/week), the increase translates to an annual raise of roughly $1,227. Employers must ensure payroll systems reflect the $16.94 rate beginning January 1, 2026. Tipped employees remain under the rule that total pay (wages + tips) must meet the new minimum wage threshold for all hours worked.
Impact on Connecticut Paid Family & Medical Leave (CT PFML)
Connecticut’s PFML benefits are tied directly to the state minimum wage. Starting January 1, 2026, the maximum weekly benefit will rise to $1,016.40, calculated as 60 times the new minimum wage of $16.94.
If an employee’s average weekly earnings are ≤ $677.60, they receive 95% of that amount. If earnings exceed $677.60, compensation is calculated as 95% of $677.60 plus 60% of the amount above that threshold—capped at the $1,016.40 maximum. CT PFML provides up to 12 weeks of paid leave in a 12-month period, with additional leave available for pregnancy-related incapacitation and safe leave.
Key Takeaways for Connecticut Employers
Employers must update all payroll, HR systems, and templates to reflect the new minimum wage by January 1, 2026. The increased PFML benefit cap may raise claim costs, especially for employees with higher wages. Communication with employees about these changes is critical, and budgets should be revisited to account for increased costs. Employers must act now to ensure compliance and be proactive in planning.