The following regulations are in place to protect workers and potential hires, require that you treat your workers fairly, provide them with benefits, a safe workplace, and contribute to Connecticut’s unemployment insurance.

Federal law states that it is illegal not to hire a candidate because of their race, color, sex, religion, national origin, birthplace, age, disability or marital/family status. While conducting the interview, the interviewer should refrain from asking any questions which may elicit such information and discourage candidates from voluntarily disclosing such details. The US Department of Labor and the Equal Employment Opportunity Commission will explain these regulations in greater detail if you are looking for more information on the subject.

Discrimination Against Past Criminal Convictions

Connecticut state law prohibits any employer or employer's agent, representative or designee, from denying employment to a prospective employee solely on the basis that the prospective employee had a prior arrest, criminal charge or conviction, the records of which have been previously erased.

Setting up Employee Benefits

If your business has established employee benefit programs like health insurance or a 401(k) plan, you’ll need a sign-up procedure so employees can enroll, name their dependents, and select options.

State of Connecticut Key Labor Laws and Regulations

Minimum Wage
As of January 1, 2015 the state minimum wage is $9.15 per hour. It is important to stay up to date with the political scene because the current wage is likely to change in the future. The History of Connecticut's Minimum Wage Rate can be found on the Connecticut Department of Labor’s site.

Paid Sick Leave
Connecticut State Law dictates that an employer must pay service worker for paid sick leave at a pay rate equal to the greater of either the normal hourly wage for that service worker or the minimum fair wage rate under CGS § 31-58 in effect for the pay period during which the employee used paid sick leave. More information regarding paid sick leave can be found on the Connecticut Department of Labor Site, along with a summarizing Powerpoint presentation.

Family and Medical Leave
All employers are required to grant leave to any employee who is experiencing one or more of the following:

1. The birth of a son or daughter of the employee
2. The placement of a son or daughter of the employee into adoption or foster care
3. To care for a spouse, son, daughter, parent of the employee or parent of the employee’s spouse if such spouse, son, daughter, parent or parent of the employee’s spouse has a serious health condition

Wage Orders an Administrative Regulations
In addition to the normal statutes regarding wage and hour laws, there are specific regulatory measures placed upon restaurants and mercantile establishments. The Administrative Regulations cover all other businesses. Posters with these regulations must be posted at the place of business and are provided by the Labor Department free of charge.

Requirements for Issuing Paychecks
All employers must pay weekly in cash or negotiable check all wages due an employee on a regular payday. Direct deposit is permitted with permission of the employee.

Waiver of Weekly Pay Requirements
A letter or completed request form found on our website should be sent to the Director of Wage and Workplace Standards Division describing the reason for the change and desired frequency. Most employers request a biweekly payroll for hourly employees covered by overtime requirements. A 30‐day notice is required to all affected employees.

Providing Earning Statements to Employees
All employers must provide an earnings statement (paystub) to each employee. This statement must show the total hours worked, gross earnings, straight time and overtime earnings, and itemized deductions with net earnings. This should be in paper form or electronically provided in a secure manner.

Breaks and Mealtimes
There are no laws requiring an employer to provide a break. If a break is provided they are typically paid. If an employee works 71⁄2 consecutive hours, however, and unless there has been an agreement previously established, all employers must provide a 1⁄2 hour unpaid meal period with some exceptions.

Fringe Benefits
There is no law requiring an employer to provide fringe benefits such as vacation and sick and holiday pay, although it is customary to do so. If the employer does provide benefits, however, their policies should be provided in writing to the employee.

Paying Overtime for Holiday
The law does not require an employer to pay overtime wages to an employee unless that employee actually works over forty hours in a workweek.

How to Define a Full Time vs. Part Time Employee
There is no formal definition of full or part‐time employees under the wage and hour law. This means that the state leaves the employer in charge of designating which of their employees they consider full‐time. This distinction can be made based on a variety of factors, such as hours worked, the employer can then choose to provide benefits, such as vacation and sick pay, at their discretion. Each employer should check with other jurisdictions, like the Internal Revenue Service or Worker's Compensation, for their formal definitions. If the employees are covered by a collective bargaining agreement, however, a definition may have already been previously established by contract.

Classifying Your Workers

The determination of independent contractor status versus employee status is often a complex decision. Connecticut unemployment law states that employment is any service performed under an express or implied contract of hire that creates the relationship of employer and employee. Workers who are employees under the common law definition of master and servant (the standard applied by the Internal Revenue Service) are therefore covered for state unemployment purposes. In Connecticut however, irrespective of whether the common law relationship of master and servant exists, the law holds that service will be considered employment subject to the act unless the service recipient can establish compliance with Connecticut General Statutes Section 31-222(a)(1)(B)(ii), commonly referred to as the AABC Test.

Workers' Compensation Insurance

The state requires that employers obtain workers’ compensation insurance to be purchased through a private insurance company. Although some sole proprietorships or a single member LLC can be excluded from requiring coverage, all businesses organized as a corporation, multi-member/partner LLC, LLP, LP or general partnership are required to apply regardless of whether or not employees are hired. Workers’ compensation insurance must provide coverage for these seven basic cases: medical treatment, temporary total disability, temporary partial disability, permanent partial disability, relapse or recurrence, discretionary benefits, and job retraining. Further information regarding workers’ compensation and the it’s requirements can be found in the State of Connecticut Workers Compensation Commission’s Information Packet.

Connecticut Unemployment Insurance

The Connecticut Unemployment Compensation Law provides workers with benefits during periods of total or partial unemployment. All employers of one or more persons (full or part-time) must register by filing an Employer Status Report and are responsible for paying the funds necessary for the state to provide the unemployment benefits to the employee through a quarterly payroll tax. Employers can register their business via the internet, which we strongly encourage, or they can register by completing the appropriate forms which can be obtained by calling the Employer Status Unit at (860) 263-6550 or drawing the forms down from the Connecticut Department of Labor Website. View a more elaborated explanation of the Unemployment Compensation Law and the exact is expectations of the employer in the Employer's Guide to Unemployment Compensation.

Adopt Workplace Safety Measures

Virtually every employer must comply with the requirements of the Occupational Safety and Health Act (OSHA) by, among other things, providing a workplace free of hazards, training employees to do their jobs safely, notifying government administrators about serious workplace accidents, and keeping detailed safety records. Connecticut is home to two OSHA offices, located in Bridgeport and in Hartford. Connecticut Department of Labor's Division of Occupational Safety and Health (CONN-OSHA) offers free comprehensive training programs and on-site consultations to private sector employers covering all aspects of OSHA.

Required State Postings For Employers

Employers are required to display certain posters in the workplace that inform employees of both their rights and employer responsibilities under labor laws. The state of Connecticut mandates a few additional notices be posted. All employers must have both the state and the federal required posters listed below publicly displayed. Means of acquiring these notices (contact number or website) are listed to the right.

State-Required Posters:

• Electronic Monitoring: (860) 263-6790
• Minimum Wage Orders: (860) 263-6790
• Unemployment Compensation: (860) 263-6550
• Connecticut OSHA (state and any political subdivision): (860) 263-6900

Federal Required Posters:

• Federal Family and Medical Leave Act (employ more than 50): (860) 240-4160
• Federal Minimum Wage Law: (860) 240-4160
• Employment Discrimination (employ more than 15): 1 (800) 669-EEOC
• American With Disabilities Act (employ more than 15): 1 (800) 669-EEOC
• Federal OSHA (all private sector employers): (860) 240-3152
• Polygraph Use Prohibition: (860) 240-4160
• Veteran and Reservist Reemployment: U.D. DOL Website

Any additional posters required by the US Department of Labor (DOL) and other federal agencies can also be found using the DOL FirstStep Poster Advisor search tool.

Employing Veterans

If your focus is to expand your business, it is important to be aware of the advantages hiring veterans can provide to your company. Several programs are available which encourage employers to hire veterans through a range of incentives. If you're interested in expanding your staff and taking advantage of these benefits, be sure to read through the following federally provided information to help you understand the process as well as the applicable laws and regulations.

• Labor Laws and Veterans
  The U.S. Department of Labor helps veterans, reservists and National Guard members secure fair employment and advises on the rights and responsibilities of reservists and National Guard members who are called to active duty under the Uniformed Services Employment and Reemployment Rights Act. The Department also enforces two equal employment opportunity programs that protect veterans and apply to federal contractors and subcontractors.

• USERRA Guide
  Contains general information about the Uniformed Services Employment and Reemployment Rights Act (USERRA).

• USERRA Advisor
  Helps Veterans and employers understand employee eligibility and job entitlements, employer obligations, benefits and remedies under the Act.

• Veteran Hiring Compliance
  Compliance assistance for hiring veterans with disabilities.

• AmericasHeroesAtWork.gov
  Guidence for employers looking to hire veterans with traumatic brain injury and post-traumatic stress disorder.

For reporting and tax purposes, the following documents are required by the federal and state governments. They ask that you obtain an EIN, withhold taxes, verify your worker’s eligibility before hiring and register them with the state after they begin working for you.

Obtain an Employer Identification Number

Before hiring your first employee, you need to have registered your business with the US Internal Revenue Service (IRS) and received an Employment Identification Number (EIN). You can do this by filling out a Form SS-4. Return to the Business Registration page to learn more. The EIN is necessary for reporting taxes and other documents to the IRS, as well as reporting information about your employees to state agencies.

Set Up a Payroll System to Withhold Taxes

There are many reasons why you should keep good records. Keeping good records can help you monitor the progress of your business, prepare tax returns and financial statements, and identify sources of receipts. Also, the IRS requires that you keep records of employment taxes for at least four years. It is in your best interest to keep good records.

Federal Income Tax Withholding
Every employee must provide their employer with a signed W-4 withholding exemption form so that you can withhold the correct amount from their paychecks. Your employees will tell you how many allowances they are claiming for tax purposes through their W-4. If your employee wants to change their allowances for the next tax year, they will need to provide you with a new W-4 with the correct changes. For more specific information, read the IRS Employer’s Tax Guide or check out irs.gov.

Also, make sure your employees provide you with a signed CT-W4, which gives the state the information needed to withhold the correct amount of income for state taxes.

Verify Employee Eligibility
Federal law requires employers to verify an employee’s eligibility to work in the United States within three days of hire by completing Form I-9. Form I-9 confirms the employee’s citizenship or eligibility to work in the U.S. To complete this form, employers can only request the documentation specified on the I-9 form.

Employers must keep each employee's I-9 on file for three years after the date of hire or one year after the date of the employee’s termination, whichever is later.

Note: Employers can electronically verify the employment eligibility of newly hired employees by registering with E-Verify using the information provided by the Form I-9 filled out by your employee.

Report New Hires to Your State's Reporting Agency
All employers are required to report newly hired and re-hired employees to Connecticut’s New Hire Reporting System within 20 days of their hire or rehire date. Neither age nor occupation is a factor in reporting new hires, and students under the age of 18 as well as family members must be reported as a new hire.

Register Your Employees with the CT Unemployment Insurance Tax Division
All employers must register their employees with the Unemployment Insurance Tax Division using the UC-1A Employer Status Report form. The Unemployment Insurance Tax Division is responsible for the funding needed to pay CT employees that have become unemployed through no fault of their own. To learn more about unemployment insurance, we encourage you to read the Employer’s Guide to Unemployment Compensation or check out the CT Department of Labor’s Unemployment Insurance Tax Information Center.

File Your Taxes
Every year, employers must report the amount of wages paid and taxes withheld for each employee on a federal wage and tax statement. This report is filed using Form W-2, wage and tax statement which employers must complete for each employee.

By the end of February, employers are required to send Copy A of their employees’ W-2 forms to the Social Security Administration to report the wages and taxes of your employees for the previous calendar year. In addition, employers should send copies of W-2 forms to their employees by January 31 of the year following the reporting period. Visit ssa.gov/employer for more information.

Running a successful small business can be difficult, especially when there are so many huge big-name businesses in our area. Why would a customer ever want to go to a local small business when a big-name business offers so much more at a lower price?

Well, it primarily boils down to customer service. Most big businesses don’t treat their customers as individuals, but rather as numbers. They are focused on getting as much profit as possible, and they have little concern for their customer’s experience. That’s where small businesses can come in. While small businesses are concerned about their finances, they are much more capable of ensuring a great experience for their customer through good customer service. Offering great customer service is among the best ways for your business to compete against national brands.

Customer Service Tips

1. Ask Customers for Feedback
   Customers like being asked for feedback; it shows that the business is concerned about their experience. Also, feedback from customers is the best way to know what should be changed or kept the same. If customers provide you with feedback, make sure you acknowledge their response and act upon it if you can.

   You can ask customers face-to-face or use social media. Social media websites, like Facebook, Twitter, or Instagram allow you to directly communicate with your customer and makes feedback considerably easier for both you and your customer.

2. Respond to Your Customers
   Whether your customer is insulting or praising your service, responding appropriately to your customer is key. By responding you are showing your customer respect and appreciation, which is significant towards maintaining them as loyal customers. Remember, there are many other businesses that they can go to. Don’t give them a reason to go elsewhere.

3. Hire Employees Who Care
   Many of the large chains have a high employee turnover rate, so when they are hiring their employees, they don’t think twice about whether their employees actually care about the products they're selling because for most of them - it’s just a source of income. This strategy works for big employers like Walmart, but it won’t work well for your business. With a small business, one person’s bad attitude can bring down your whole reputation. Your customers should see how passionate your workers are about the work they do and the business they do it for. You should aim to hire workers that share similar values and principles with you and your company, and you should prioritize treating your employees well. Remember, without them fully engaged and interested in their work, your company won’t function well.

4. Develop and Invest
   Develop and invest in your employees, your business and in yourself!

   Investing in your employees will help build their skillset as well as preventing turnover. Most people are looking to advance themselves. If you give them the opportunity of promotion or new responsibilities, they will find their work more fulfilling and will be more likely to stay with you even if better employment offers come their way. Having happy, committed workers will help you give fantastic customer service to your customers.

   Investing in your business should also be a priority. Your customers should be pleased by your product/service and everything in the process from start to purchase and even after. Make sure your building is clean and looks appealing. You should try to make transactions as easy as possible for your customers. Try to see if you can accept credit/debit cards as well.

   Investing in yourself is also key. Teaching yourself how to use social media will help you interact with your customers even when they are not in your store (or when you’re not providing a service for them).

5. Make an Appearance
   While you are the owner of this business and you have a lot to manage, make sure you come out from the back office and interact with your customers and employees. An easy to reach manager is a favorite of customers. Managers can easily handle any questions, complaints and concerns that a regular employee may not be able to. Also interacting and being friendly with customers makes them feel welcome and wanted in your store.

6. Don’t Become Defensive

7. Use Technology and Social Media to Your Advantage
   Try to use technology to your advantage. Try to get a credit/debit card reader or a point of sale system. (A point of sale system will allow you to track purchases by individuals or specific demographics, which will help you with personalized marketing. It will also help you track inventory, give promotions, and control pricing effectively). If your merchandise or machinery is valuable, you should probably invest in a security system. Also, a payroll system software is a must.