Hiring Employees in Connecticut

Classifying Your Workers Correctly

Your company must decide whether each hire in Connecticut is an employee or an independent contractor under both IRS and state tests. The IRS looks at behavioral control, financial control, and the overall relationship, while Connecticut also applies a strict “ABC test” for unemployment and wage laws. If you misclassify workers, you can face back wages, unpaid overtime, tax assessments, interest, and civil penalties, and you may owe retroactive benefits.

You should document why you classified someone as a contractor, keep written agreements aligned with actual working conditions, and periodically review roles as they evolve. To understand the risks and how to avoid them, you can also review Playroll’s guide on misclassification at https://www.playroll.com/blog/employee-misclassification-guide.

Verify Employee Work Eligibility

For every employee you hire in Connecticut, you must complete federal Form I-9 within 3 business days of the employee’s start date. You must physically or remotely inspect acceptable identity and work authorization documents from the employee’s original documents list and keep I-9s for at least 3 years after hire or 1 year after termination, whichever is later.

Connecticut does not currently mandate E-Verify for most private employers, but you may choose to use it voluntarily if you follow federal rules consistently. You should store I-9s separately from personnel files, restrict access to authorized staff, and apply the same verification process to all new hires to avoid discrimination claims.

Create an Employee Onboarding Process

When you hire in Connecticut, your onboarding process should include a written offer letter outlining pay rate, pay schedule, exempt or nonexempt status, and key policies. You will need to collect federal Form W-4, Connecticut Form CT-W4 for state withholding, direct deposit authorization if used, and signed acknowledgments for your handbook and required state notices.

Connecticut requires you to provide information on unemployment benefits, workers’ compensation, and certain leave rights, and you should also gather any benefit enrollment forms within the first 30 days. Building a standardized onboarding checklist helps you keep costs visible and predictable so you can compare the true cost of hiring in Connecticut to other locations.

Pay Frequency & Methods

In Connecticut, most employees must be paid at least weekly, though you can request state approval to pay biweekly or less frequently, and the gap between paydays generally cannot exceed 16 days. You must pay wages no later than 8 days after the end of the pay period, and final wages are due on the next regular payday, or the next business day if the employee is discharged; failure to pay on time can trigger wage claims, penalties, and attorney’s fees.

Payment Methods (How You Can Pay)

You can choose from several payment methods in Connecticut, but you must always ensure employees receive full, timely wages and a compliant wage statement each pay period.

• Payroll Check: You may pay by check as long as it is payable at full face value in cash at a Connecticut bank without fees to the employee.
• Cash: You can pay wages in cash if you provide a written wage statement each payday showing hours, rates, gross pay, and all deductions.
• Direct Deposit (EFT): You may use direct deposit only with the employee’s voluntary written consent and must offer an alternative method if consent is withdrawn.
• Paycards: You can use payroll cards if employees have fee-free access to full wages at least once per pay period and receive clear disclosures of any card terms.
• Outsourced Payroll: You may outsource payroll to a third-party provider, but your company remains responsible for compliance with Connecticut wage and tax laws.

When you hire employees in Connecticut, you must withhold and remit federal and state payroll taxes and pay several employer-only contributions. You will register with both the Connecticut Department of Revenue Services (DRS) and the Connecticut Department of Labor (DOL) before running your first payroll.

Employer Tax Contributions

Your company is responsible for employer-side Social Security and Medicare, Connecticut unemployment insurance, and any required state assessments. You must file returns and pay on the schedules assigned by the IRS, DRS, and DOL, and keep payroll records for at least 4 years.

Employee Payroll Tax Contributions

You must withhold federal income tax, Social Security and Medicare, Connecticut state income tax, and the employee share of PFML from each paycheck. Employees rely on accurate withholding to avoid underpayment penalties, so you should collect updated W-4 and CT-W4 forms when their circumstances change.

Minimum Wage in Connecticut

Connecticut’s minimum wage is $15.69 per hour as of 2025, with future adjustments tied to the Employment Cost Index. You must pay at least this rate to most nonexempt employees, with limited exceptions such as a lower training wage for certain minors and specific rules for tipped employees in hospitality.

Working Hours in Connecticut

Connecticut generally follows a 40-hour workweek standard, and you must track actual hours worked for all nonexempt employees. State law restricts mandatory overtime in certain industries and requires meal periods for some employees working long shifts, so you should build schedules that allow compliant breaks and rest periods.

Overtime in Connecticut

Nonexempt employees in Connecticut must receive overtime pay at 1.5 times their regular rate for all hours worked over 40 in a workweek. You should clearly define your fixed 7-day workweek in writing, include most bonuses and differentials in the regular rate calculation, and keep detailed time records for at least 3 years.

Offering competitive benefits in Connecticut typically includes health insurance, retirement plans, and paid time off, especially if you have 50 or more full-time employees and are subject to the federal ACA employer mandate. Beyond legal minimums, richer benefits can help your company attract and retain talent in a high-cost labor market.

Mandatory Leave Policies in Connecticut

Paid Time Off in Connecticut

Connecticut does not require general vacation or PTO, but once your company offers it, your written policy will govern accrual, carryover, and payout rules. You should clearly state whether unused PTO is paid out at termination, because Connecticut wage law may treat earned vacation as wages if your policy promises payment.

Many employers in Connecticut combine vacation, personal days, and sick time into a single PTO bank while keeping separate records to ensure compliance with the state’s paid sick leave and PFML requirements. Make sure your PTO policy coordinates with these mandatory programs so employees receive at least the minimum protections.

Maternity & Paternity Leave in Connecticut

Connecticut’s family and medical leave laws allow eligible employees to take job-protected leave for pregnancy, childbirth, and bonding with a new child, subject to length-of-service and hours-worked requirements. At the same time, the Connecticut Paid Leave program can provide partial wage replacement during qualifying maternity or paternity leave, funded through employee payroll deductions.

Your company should align its parental leave policy with both federal FMLA and Connecticut law, ensuring that employees understand how job protection, wage replacement, and any employer-paid parental leave benefits interact. Clear communication about notice requirements, medical certifications, and benefit continuation during leave will help you manage staffing and compliance.

Sick Leave in Connecticut

Connecticut requires certain employers, particularly in service industries over a size threshold, to provide paid sick leave that accrues based on hours worked and can be used for the employee’s or a family member’s illness or preventive care. You must track accruals, allow use after the waiting period, and post or distribute a notice explaining employees’ rights.

Even if your company is not covered by the paid sick leave statute, offering a sick leave benefit can reduce presenteeism and support a healthier workplace. Be sure your policy explains documentation requirements, increments of use, and whether unused sick time carries over from year to year.

Military Leave in Connecticut

Employees in Connecticut who serve in the armed forces, reserves, or National Guard are protected by federal USERRA and additional state laws that guarantee reemployment rights after qualifying service. You must allow unpaid leave for military duties, maintain benefits as required, and reinstate returning employees to the same or an equivalent position if they meet eligibility criteria.

Your company should train managers not to discriminate based on military status and to handle drill weekends, annual training, and deployments consistently. Written procedures for military leave requests and documentation will help you stay compliant and support affected employees.

Jury Duty in Connecticut

Connecticut employers must allow employees time off to serve on a jury and may not threaten or penalize them for complying with a summons. For the first few days of jury service, some employers may be required to pay regular wages, after which the state may provide a modest juror stipend.

You should ask employees to provide a copy of the jury summons and adjust schedules as needed, while continuing benefits according to your policy. Make sure your handbook states whether jury duty pay is provided beyond any statutory minimums.

Voting Leave in Connecticut

Connecticut law provides a limited amount of unpaid time off for employees to vote in certain elections when they do not have sufficient time outside working hours. You may require advance notice and can schedule the leave at the beginning or end of the shift to minimize disruption.

Even when not strictly required, many employers in Connecticut encourage civic participation by offering flexible scheduling on election days. Clearly communicating your voting leave expectations before major elections helps avoid last-minute conflicts.

Bereavement Leave in Connecticut

Connecticut does not mandate bereavement leave, but many employers voluntarily provide a few days of paid or unpaid time off following the death of an immediate family member. Your company’s policy should define who qualifies as family, how much time is available, and what documentation, if any, is required.

Because bereavement situations are sensitive, you may want to allow some manager discretion to extend leave or offer flexible work arrangements. Consistent application of your policy, combined with empathy, will help you support employees while maintaining operations.

Termination Process

Connecticut is generally an at-will employment state, so you can terminate employment for any lawful reason, but you must avoid discriminatory or retaliatory motives and follow any contractual obligations. You should document performance issues, apply your disciplinary policy consistently, and provide the employee with final pay and required notices at separation.

Notice Period

Connecticut law does not require employers or employees to give advance notice of termination in most cases, unless a contract, collective bargaining agreement, or company policy says otherwise. However, providing reasonable notice or severance can reduce legal risk and support smoother transitions, especially for senior roles.

Severance

Severance pay is not required by Connecticut law, but if your company offers it, the terms should be clearly documented in a written agreement. Many employers condition severance on a release of claims, and you must ensure any release complies with federal and state rules, particularly for employees over age 40.