RINGING IN 2026: GETTING HR READY FOR THE NEW YEAR
- Jennifer Barry
- 5 days ago
- 3 min read
As the holiday decorations go up and the year draws to a close, December is the perfect time not just to reflect – but to plan. For small businesses, starting 2026 strong means thinking ahead now: making sure your policies, staffing, and compliance are all lined up to support your growth and your people.
Here are some key Connecticut law changes for 2026, plus a bite-sized checklist to help you kick off the year confidently.
What’s New in Connecticut for 2026
1. Minimum Wage Increase – Starting January 1, 2026, Connecticut’s minimum wage climbs from $16.35 to $16.94 per hour, thanks to the state’s law that ties wage adjustments to economic indicators.
2. Paid Sick Leave Expansion – Big shifts are coming in paid sick leave: as of January 1, 2026, businesses with 11 or more employees must provide up to 40 hours of paid sick leave per year.
o Employees earn sick leave at a rate of 1 hour for every 30 hours worked, up to the 40-hour cap.
o The law expands who counts as a “family member” for taking leave, adding siblings, grandparents, close associations, and more.
o Use of sick leave has also broadened: time off can now be used for mental health, preventative care, and when there’s a public health emergency, among other reasons.
o Employers may choose to front-load the leave, but unused time can also carry over, up to 40 hours.
3. Retirement Program Compliance--Another important law was passed in July of 2025. Businesses with 5 or more employees that haven’t offered a retirement plan are now subject to penalties under the Connecticut state-run retirement program.
HR Checklist for Small Businesses: Preparing for 2026
1. Budget for Wage Increases
o Revisit your 2026 payroll budget in light of the $16.94 minimum wage.
o If you have roles paying near the minimum, adjust for the increase.
o Consider whether you need to adjust your compensation strategy to stay competitive and compliant.
2. Revise your Sick Leave Policies
o Determine whether you fall under the 11-employee threshold.
o Update your employee handbook to clearly lay out sick leave accrual, usage, and carry-over rules.
o Communicate changes to staff
3. Retirement Program Compliance
o Confirm if your business is subject to Connecticut’s retirement program requirement.
o If you don’t already offer a retirement plan, evaluate whether to join the state-run program or set up your own.
o Communicate options to your employees and help them enroll or understand any changes.
4. Post Required Notices
o Make sure your workplace postings are up to date (labor law posters, paid sick leave notices, minimum wages, etc.)
o Check for any new or revised state-required notices tied to the paid sick leave expansion or other changes.
5. Plan Your Hiring & Onboarding Strategy
o Think ahead to growth or turnover in 2026.
o Update job descriptions to reflect any new changes.
o Build onboarding training for new hires that aligns with your updated policies.
6. Review Benefits
o Close out 2025 HR Files, accrual logs, carry-over balances, performance reviews, and ensure documentation is complete so you start fresh.
Preparing for 2026 now means less scrambling later. At Optimal HR Solutions, we’re here to support small businesses as you navigate these upcoming changes. Whether you need help rewriting your employee handbook, updating your policies, training managers, or designing a leave tracking system – we’ve got your back. Reach out if you’d like a consultation to kick off 2026 right.
Wishing all of our local businesses a joyful holiday season and a thriving new year ahead!