Increase in minimum wage kicks off the new year

Connecticut residents at the base of the economic pyramid will have something to look forward to as the New Year approaches ”” a little more money in their pockets ”” as the state”™s minimum wage is scheduled to rise from the current rate of $9.15 per hour to $9.60 at the start of 2016.

The new wage will put the state on a similar footing as states with relatively high minimum wage laws set to take effect in 2016 such as Alaska ($9.75), Washington ($9.67). The highest minimum wage laws for 2016 can be found in California and Massachusetts, both set to raise their wages to $10 and in Washington D.C., set to increase to $11.50.

The increase in Connecticut is the second in a series of three scheduled under legislation signed by Governor Dannel P. Malloy in 2014, which will ultimately see the state’s minimum wage increase to $10.10 on January 1, 2017.

“Nobody who works full-time should live in poverty.  We believe hardworking men and women, many of whom are supporting families, deserve fair wages,” Malloy said.  “I am proud that Connecticut has been a leader in promoting a higher hourly wage.  It is a modest increase that will give working families a boost while also having simulative economic effects.”

Despite frequent criticism that increases in the minimum wage burden employers and limit job opportunities, a July survey by the Small Business Majority shows that three out of five small business owners with employees support gradual increases in the minimum wage. The survey reports that small business owners believe an increase will put more money in the pocket of low-wage workers, who will then spend that money on items such as housing and food, which will help stimulate the economy, according to the U.S. Department of Labor

An increase in wages can be especially helpful for households headed women and minorities, said Lt. Governor Nancy Wyman.

“In Connecticut, more than 60 percent of the minimum wage workforce is made up of women.  This pay increase will help us narrow wage gaps, but it’s also part of broader efforts to ensure that full time workers can afford to work and live in Connecticut,” she said.