2024 Updates for Connecticut Employers: Minimum Wage, SUTA, Withholding and More

by

Tara Jones

,
on Mar 5, 2024 2:04:00 PM

Employers in Connecticut are accustomed to adapting to changing state and federal labor laws. Similar to changes in past years, 2024 is no exception. Let's take a look at what's changing in 2024.

CT Minimum Wage

As we've detailed in previous articles, Connecticut's minimum wage was increased again in 2024. As of January 1, 2024, the CT minimum wage was increased to $15.69 per hour. This represents a 4.6% increase over the 2023 minimum wage of $15.00 per hour. The increased minimum wage is now tied - for the first time ever - to the federal employment cost index

State Unemployment Tax Act (SUTA) Alterations

Three key changes are coming to CT SUTA in 2024. 

  1. Taxable Wage Base - CT's taxable wage base (cap on earnings subject to SUTA taxes) will see a significant increase from $15,000 to $25,000. 
  2. Rate Adjustments - CT is decreasing the minimum charged rate from 0.5% to 0.1%. However, on the opposite end, the maximum charged rate will increase from 5.4% to 10.0%, nearly doubling.
  3. Indexing on Inflation - Moving forward from 2024, CT will index its taxable wage base annually to account for inflation, aiming to shift in-line with economic changes.

Withholding Changes

For Connecticut employers, the income tax withholding is set to change. According to the Connecticut Department of Revenue Services, the two lowest tax rates will be lowered, as of January 1, 2024. "...the 3% rate on the first $10,000 earned by unmarried individuals and the first $20,000 earned by married individuals filing jointly or earned by a person who files a return under the federal income tax as a surviving spouse, will decrease to 2%." Additionally, "...the 5% rate on the next $40,000 earned by unmarried individuals and the next $80,000 earned by married individuals filing jointly or earned by a person who files a return under the federal income tax as a surviving spouse will decrease to 4.5%. These benefits will be capped for unmarried individual filers who earn $150,000 and for married individuals filing jointly or for a person who files a return under the federal income tax as a surviving spouse who earns $300,000. "

Federal Pregnant Workers Fairness Act

Effective June 18, 2024, all employers with 15 or more employees must comply with the new Pregnant Workers Fairness Act (PWFA). The PWFA is a federal law that aims to protect pregnant workers from discrimination based on pregnancy, childbirth, or related medical conditions, and to ensure that they receive reasonable accommodations in the workplace. 

FLSA Salary Threshold for Overtime Exemption Update

Effective July 1, 2024, the Department of Labor will implement a new rule that will increase the salary threshold from $35,568 per year ($684 per week) to $43,888 per year ($844 per week). This means that employees who earn less than $43,888 per year will be eligible for overtime pay, regardless of their job duties or classification. 

The rule imposes additional increases beginning July 1, 2025. For exemptions under the executive, administrative, professional, and outside sales the minimum salary threshold increases to $58,656 annually ($1,128 weekly).  

Finally, beginning July 1, 2027, and every three years thereafter, the minimum salary required for exempt status under the salary test will automatically increase.  For executive, administrative, and professional exemptions, the salary level will adjust to remain at the 35th percentile of weekly earnings of full-time non-hourly workers in the lowest-wage Census Region. 

No More Non-Compete Clauses and Agreements

The Federal Trade Commission (FTC) voted on April 24 to prohibit non-compete clauses and agreements for nearly all workers and render existing non-compete clauses and agreements for employees below the level of senior executives unenforceable.  Once approved, the final rule will ban new non-compete agreements for all workers and require companies to let current and past employees know they won’t enforce them. Companies will also have to throw out existing non-compete agreements for most employees, although, in a change from the original proposal, the agreements may remain in effect for senior executives. 

ACA Reporting for 2023

For many employers subject to Affordable Care Act (ACA) reporting, January 1, 2024 marked the beginning of the process for 2023 reporting. We put together a handy ACA reporting guide for 2024, including eligibility criteria and important dates. A few important dates you should be aware of:

January 1, 2024 - First day to approve forms.

February 5, 2024 - Approvals due (CA employees earlier)

March 4, 2024 - Deadline to distribute 1095 forms to all employees (CA employees earlier)

March 31 - IRS electronic submission deadline

A Note for Employers

Don't let the upcoming labor law changes catch you off guard. If you have questions about how these changes may affect your business, get in touch with The Human Resource Consulting Group today.

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Topics:SUTALabor Law ComplianceCT Minimum Wage 2024

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