Connecticut Governor Ned Lamont recently signed into law House Bill 5003, titled An Act Concerning Workforce Development and Working Conditions, which was enacted as Public Act 26-12 (“the Public Act”). This sweeping legislation contains a number of significant changes affecting employers.
What You Need to Know
- Broad Legislative Support: The Public Act was touted by the governor as a comprehensive pro-worker bill that garnered overwhelming bipartisan approval.
- Many Facets of Employment Addressed: The Public Act addresses a wide range of employment issues, including pay transparency, wage and hour matters, accommodation, and limitations on certain employment-related contracts.
- Quick Employer Action Required: With most of the Public Act’s provisions taking effect just over three months from now, private employers have a limited time to update their policies, contracts, and procedures.
This Insight breaks down this legislation, which contains a total of 75 sections of new laws (many aimed at public employment), to highlight the provisions that will affect private employers. Unless otherwise noted, these changes will become effective on October 1, 2026.
Pay Transparency: Mandatory Wage and Benefits Disclosures
The Public Act amends Connecticut’s existing pay equity law in several notable ways.
New Job Posting Disclosures
All job postings, whether internal or external, will be required to include the wages or wage range for the position and a general description of the benefits offered for the position. This is an entirely new requirement, adding Connecticut to a growing number of states that have adopted such pay transparency laws.
With regard to current employees, employers must now include a general description of the benefits to be offered for the position as well as the wage range for the employee’s position (i) upon hire, (ii) at the time of a change in the employee’s position, or (iii) upon the employee’s first request for a wage range.
More Detailed Disclosures
Currently, under Connecticut General Statutes (CGS) § 31-40z, employers are required to provide a wage range for a position upon an applicant’s request, or prior to or at the time an applicant is made an offer of compensation. New provisions require employers to disclose not only the wage range but also a general description of employment benefits to be offered with the position. This new disclosure must be made upon the earliest of the applicant’s request, before any discussion of compensation with the applicant, or when an offer of compensation is made.
Clarified Protective Measures
The Public Act adds a prohibition on retaliation or discrimination against an applicant or employee. Examples of illegal conduct include refusal to interview or hire a prospective employee, refusal to promote an employee, or termination of an employee for exercising rights under the pay equity laws.
While the law continues to expressly provide for a private right of action, the Public Act eliminates punitive damages from the statute’s list of available remedies.
Importantly, the Public Act answers a previously open question about the applicability of the wage disclosure requirement to out-of-state employers and employees. It clarifies that the law applies to any position in which duties will be performed within the state of Connecticut or outside of the state, where the employee reports directly to a supervisor, office, or other worksite located within Connecticut.
Expanded Lactation Accommodation
Pursuant to the Public Act, all Connecticut employers will be required to provide reasonable break times for an employee to express breast milk or breastfeed at the workplace, in addition to the employee's regularly scheduled breaks.
Currently, Connecticut law merely permits an employee to express milk or breastfeed during existing meal or break periods. It should be noted that existing requirements for a private space near the work area with refrigeration and an electrical outlet remain in place, and the statute’s “undue hardship” framework—keyed to business size, financial resources, and operational structure—continues to apply.
Notice to Employees of Reasonable Accommodations for Disabilities
Employers will be required to provide written notice of an employee's right to reasonable accommodations in the workplace under the federal Americans with Disabilities Act to (i) new employees at the commencement of employment; (ii) existing employees within 120 days of October 1, 2026 (i.e., by January 29, 2027); and (iii) any employee who notifies the employer of a disability, within 10 days of such notification.
This state-level disability notice obligation is new. Employers may comply by displaying a poster—to be created by the Labor Commissioner—in a conspicuous place accessible to employees. The Public Act also authorizes the Labor Commissioner to adopt regulations imposing additional requirements related to this new notice requirement.
Broader Ban on Employee Promissory Notes
The Public Act extends Connecticut’s existing ban (CGS § 31-51r) on employment promissory notes—instruments or agreements requiring an employee to repay the employer a sum of money if the employee leaves before a stated period, including so-called Training Repayment Agreement Provisions (TRAPs), which are styled as reimbursement for training—to all employers, regardless of size. Currently, the law applies to employers with more than 25 employees, but it will extend to all employers as of October 1, 2026.
The current law’s limited exceptions remain, including repayment of other sums advanced to the employee, sabbatical terms for educational personnel, and collectively bargained programs.
Overtime Pay Code Guides
The Public Act amends CGS § 31-13a to add a new subsection requiring covered employers (with 100 or more employees) to create a guide of pay codes for overtime and the employer’s most commonly used pay differentials, such as shift differentials, on-call pay, hazard pay, call-back pay, holiday or weekend pay, or geographical pay differentials.
The new subsection provides that, if applicable, such guides must include not less than 10 pay codes. The guides must also include contact information for a designated office or individual who handles disputes regarding calculations of hours and pay differentials.
Employers will be required to update this guide whenever they implement a new pay code for overtime or shift differentials.
Distribution of Pay Code Guides
Covered employers will need to post their pay code guide on their website (if they have one) in English, Spanish, and any other languages commonly spoken by their employees. Employers must provide a website address for the guide to all new employees upon hire, and wage statements must list the address for the employer’s guide as well.
Alternatively, employers can provide employees with a written guide in English and in an employee’s primary language upon hire.
Importantly, the new law states that it does not obligate employers to create new pay codes, nor does it require employers to create a website. Furthermore, employers that rely on a third-party payroll service will be compliant as long as the payroll company provides a pay code guide that satisfies the law’s requirements.
Retention of Service Contract Workers
Effective July 1, 2027, the Public Act creates broad worker notice and retention requirements for entities that take over certain service contracts at “covered locations,” including large residential buildings, shopping malls, schools, airports, train stations, office complexes, warehouses, and distribution centers.
Mandatory Transition Steps
Significantly, a successor employer will be required to retain the terminated contractor’s “covered employees” for at least 90 days.[1]
Before taking over a covered service contract, a successor employer will need to hand-deliver a written offer of employment (in a statutorily prescribed form) to each of the terminated contractor’s employees, in their native language or any other language in which the employee is fluent. Among other things, such notice will:
- inform the employees of the successor relationship;
- offer them a job for a 90-day transition period;
- state that they cannot be fired without just cause during that period; and
- advise that, if they are terminated in violation of the law, they have a right to sue the successor employer or file a complaint with the Labor Commissioner to seek enumerated potential damages.
After the 90-day period, the successor employer must provide each transitional employee with a performance review. If an employee’s performance is “satisfactory,” the successor employer is required to issue that employee a written employment offer.
Extensive Enforcement Provisions
Penalties for violations are significant: a successor employer that fails to retain or discharges an employee in violation of the law will face penalties of at least $500 and up to $1,000 per employee for each day the violation continues. Violations of the notice provisions carry penalties of $50 to $200 per employee per day.
The Public Act also creates a private right of action to recover damages for a violation, or an employee may file a complaint with the Labor Commissioner. The Labor Commissioner may request that the Attorney General bring an action on behalf of any employee to recover damages and injunctive relief. Available damages include back pay for each day during which the violation has occurred, reinstatement, compensatory damages, and reasonable attorney’s fees and costs.
New Penalties for Subcontractors’ Failure to Pay Wages in Construction Contracts
The Public Act amends the Connecticut Wage Statute to add a new provision that imposes joint and several liability on construction contractors for unpaid wages owed by their subcontractors and amends CGS § 31-72 to expressly provide a private right of action against a contractor and subcontractor where the subcontractor fails to pay an employee wages owed. These provisions will apply to labor performed within the scope of a construction contract entered into on or after January 1, 2027.
The new provisions set forth the condition that, at least 30 days prior to a subcontractor’s employee commencing a civil action for unpaid wages against the contractor, the employee must provide notice of the alleged violation by the subcontractor to the contractor. This notice must describe the general nature of the alleged violation. As specified by the Public Act, the notice does not limit the contractor’s liability.
The Public Act specifies that any construction contract with a subcontractor entered into or renewed on or after January 1, 2027, may include a provision establishing a remedy for any liability created by nonpayment of wages to the subcontractor’s employees, including an agreement that such liability may be paid from monies withheld for retainage. Such provisions will not, however, shield a contractor from a private action brought by the subcontractor’s employee(s). Agreements entered into or renewed after January 1, 2027, that waive or release a contractor’s liability will not be enforceable.
Industry-Specific Changes to Minimum Wage Laws
The Public Act adds a provision to Connecticut’s laws governing the cannabis industry to expressly require employers in that industry to pay employees the state minimum wage. Specifically, the new law prohibits the Labor Commissioner from recognizing gratuities as part of the minimum fair wage for employees of cannabis establishments, dispensary facilities, or producers. This means that such employers must pay employees at least Connecticut’s minimum wage directly, without using tips to supplement a lower hourly rate. Currently, tip credits are permitted in certain industries under Connecticut’s wage statutes.
The Public Act also amends the definition of an “employee” to add to the list of individuals who are not considered employees for purposes of minimum wage and overtime laws. Any individual who has entered into a contract to play minor league baseball and is compensated pursuant to the terms of a collective bargaining agreement will not be subject to the state’s minimum wage and overtime requirements.
What Connecticut Employers Should Do Now
With most of the Public Act’s provisions taking effect just over three months from now, Connecticut employers should prioritize making necessary adjustments to remain compliant with state law.
- Update job postings—including those that will only be distributed internally—to ensure they disclose pay ranges and include a general description of benefits.
- Train hiring managers regarding new pay transparency requirements and review procedures to ensure timely disclosure of pay range and benefits information. Also, make managers aware of the legal prohibitions on retaliation against applicants and employees who exercise their rights under Connecticut’s pay equity law.
- Update accommodation policies and practices and ensure that employees who need to express breast milk are permitted reasonable break time for that purpose, in addition to their regular meal and rest breaks.
- Watch for the CT Department of Labor to issue a new poster that describes employee rights to reasonable accommodation for a disability.
- Review any employment contracts that include prohibited promissory notes, including TRAPs.
- If an employer of 100 or more, review payroll processes and prepare a pay code guide as needed, or ensure that your payroll management vendor is aware of and preparing for compliance with new requirements for pay code disclosure.
- Ensure compliance with minimum wage laws, which are changing for the express purpose of requiring a full minimum wage for employees in the cannabis industry.
- If a service contractor, review the new law that creates obligations for retaining employees when assuming certain service contracts.
- If a construction contractor, be aware of express liability for subcontractors’ failure to pay wages owed and consider whether contracts with subcontractors should include protections against potential damages through retainage.
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For additional information about the issues discussed in this Insight, please contact the attorney(s) listed on this page or the Epstein Becker Green Employment, Labor & Workforce Management attorney who regularly handles your legal matters.
Staff Attorney Elizabeth Ledkovsky contributed to the preparation of this Insight.
ENDNOTE
[1] A “covered employee” includes any person who works 16 hours or more per week and has been engaged to perform care or maintenance services at the covered location or passenger and other services at an airport for at least 60 days. It does not include managerial, supervisory, or confidential employees or any person engaged to perform services on a project that requires a permit issued by a municipality.
