As I noted a while back, the inflation that the nation observed in 2023 was likely going to have a substantial impact on the state’s minimum wage.

The law, which connects the state minimum wage to changes in the federal employment cost index (ECI), was originally passed in 2019 when inflation wasn’t of major concern.

Under that law, the minimum wage is required to be adjusted each year based on the USDOL’s calculation of the ECI for the 12 month period ending on June 30 of the preceding year. Here, the ECI increased by 4.2 percent over the 12 month period ending June 30, 2024.

As a result, Governor Lamont issued a press release on Friday indicating that the state minimum wage will increase from $15.69 per hour to $16.35 per hour effective January 1, 2025.

Employers should make sure to start making arrangements now to increase the wages of those at the level but also those above the level who may also need corresponding increases.

And flag this for 2025 – another increase for 2025 will likely be announced in late September as well.