Some people in our state will be getting a pay raise in the new year.
That’s because the minimum wage is going up to $16.35 an hour, one of the highest in the nation.
As sales are being made at the Wesleyan RJ Julia Bookstore in Middletown, the store is making tweaks to its future operating budget. That’s because the state minimum wage will rise to $16.35 an hour starting Wednesday.
“There's been a lot of increases over the last several years, and it's something that we have to build into our budgets,” Lori Fazio, president and chief operating officer of RJ Julia Booksellers, said.
She said they’re prepared for the change.
“We know what we have to do in sales as well as operating expenses and costs in order to, you know, make sure it's a viable business,” Fazio said.
While she supports paying workers well, she said a wage hike can create challenges. Bookstores are unique because prices are fixed by book publishers, but Fazio said other small businesses could potentially adjust prices.
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“What can they maybe gain a little bit more margin on, whereas some things that they know they can't increase because you also then don't want to be the most expensive,” Fazio said.
The pay increase is the result of a 2019 state law requiring wages to be adjusted to the federal employment cost index. That index rose 4.2% from June 2023 to June 2024, resulting in a 66 cent rise in the minimum wage.
University of New Haven accounting and taxation professor James Moh said while it could help workers in the short term, it’s not meant to be a lifetime wage for workers.
“Minimum wage is supposed to be this entry level wage where you can come in, you work hard, you learn your trade, you learn what you're doing,” he said.
Some support this move, but others have concerns.
“I think that the increase is going to benefit a lot of people,” Mary Jane Maselli, of Wethersfield, said.
“I think the minimum wage worker needs the $15 but it’s tough on small businesses, so it’s definitely a struggle,” Camille Benoit, of Niantic, said.
Fazio said as businesses make adjustments, there is one way you can help.
“Shopping local really supports your neighbors and your kids and your, you know, the mom and pops and it's really important,” she said.
Once it takes effect, Connecticut will have the fifth highest minimum wage in the country, after states like California and Washington state.
