If you are an employer with over 500 employees in Connecticut and you hire someone for less than $15/hr you must now pay a tax of one dollar for each hour your employee works.
It’s a shakedown from the state wrapped in the banner of “wage justice.” It’s a revenue stream for government and another barrier to employment for low skilled workers.
Just another reason people and business continue to leave the Northeast.
(From The Mises Institute)
The funds taken from firms via this legislation would then be spent toward state programs for the elderly and children and on programs like the Office of Early Childhood. So, we take money from employers that would have been spent on wages, and the state spends it on government programs instead. Many workers lose their jobs, but a few get lucky and see their wages bumped up to a “living wage.” Those who become unemployed can then go on public assistance. It’s win-win for the state, and if that strategy doesn’t win votes and get the politicians behind it re-elected, I don’t know what will.