As we move past the post-holiday slowdown, employers in Connecticut should be aware of some important changes coming in 2026. You can find a complete list of all bills effective January 1, 2026 here. Here are the key points you need to know:
Minimum Wage Increase
It’s easy to forget that Connecticut’s minimum wage law changes every year. The law now links the state minimum wage to changes in the federal Employment Cost Index (ECI). This law was originally passed in 2019, at a time when inflation was not a major concern.
The minimum wage must be updated each year based on the U.S. Department of Labor’s calculation of the Employment Cost Index (ECI) for the 12 months ending June 30 of the previous year. For this period, the rate is 3.6%.
Starting January 1, 2026, the state minimum wage will increase to $16.94 per hour, up from $16.35. All employers must ensure they implement this new rate right away.
Paid Sick Leave Now Applies to Small(er) Businesses
Effective January 1, 2026, Connecticut’s paid sick leave law will apply to employers with 11 or more employees, lowering the threshold from 25 employees in 2025. Then, starting January 1, 2027, the law will cover almost all remaining employers with at least one employee.
Employees at these smaller companies will earn one hour of paid sick leave for every 30 hours they work. This sick leave can be used after they have worked for the company for 120 days.