Advocacy in Action | March 5, 2026
2026 Legislative Tracker
The Connecticut Restaurant & Hospitality Association actively monitors a wide range of legislation throughout each legislative session. It's important to note that the introduction of a bill does not guarantee its passage.
The CRHA Bill Tracker gives you a sense of the breadth and variety of legislation we track throughout session, as well as an overview on the status of each bill. This tracker will get updated regularly with the latest information coming out of session.
HB 5010: No Tax on Tips & Overtime | SB 102: 1% Meals & Beverage Tax
Scott Dolch, CRHA President & CEO, and Michelle Nicholson, Owner of The Flour Girl & CRHA Board Member, headed to the Capitol for a news briefing with House Republican Leaders on proposed No Tax on Tips legislation.
Following the briefing, Michelle and Scott also testified in front of the Finance, Revenue and Bonding Committee. Michelle highlighted HB 5010, which would exempt personal state income tax on tips and overtime. Scott testified in favor of this bill and also highlighted SB 102 which redirects the 1% Meals and Beverage Tax.
House Bill 5010, An Act Exempting Tips or Gratuities and Overtime Pay from the Personal Income Tax, could save workers about $126 million per year, including the 170,000 employees - around 12% of the state's workforce - represented by the Connecticut Restaurant & Hospitality Association.
Scott said: “This is a pro-worker bill. This is a pro-business bill. It’s people in hotels and in the hospitality industry who have the opportunity for overtime.”
| Watch Scott & Michelle's Testimony | Read Testimony |
Related coverage:
-
Republican proposal would exempt tips and overtime from Connecticut income tax. Hear from staff at The Flour Girl in Hebron. Watch here via NBC.
-
Connecticut House Republicans propose eliminating state tax on tips and overtime. Hear from staff at First & Last Tavern in Hartford. Watch here via WFSB.
-
Tax battle emerges in CT. Who might have to worry and raising the income tax has been pitched. Read here via Hartford Courant.
HB 5378: Self-Funded Multiple Employer Welfare Arrangements
HB 5378 proposes allowing self-funded Multiple Employer Welfare Arrangements (MEWAs) and association health plans so groups like trade associations can offer healthcare coverage to their member businesses. The bill also requires a study on the feasibility of creating the Connecticut Option Program and expanding MEWAs. The goal is to give small employers greater flexibility and lower-cost options for providing health insurance to employees.
In testimony before the Insurance and Real Estate Committee, Scott expressed support for House Bill 5378, emphasizing that rising healthcare costs make it difficult for many of Connecticut’s small restaurants and hospitality businesses to offer affordable benefits to employees.
He argued that allowing trade associations to sponsor health plans would give small businesses the collective purchasing power typically reserved for large corporations, enabling them to negotiate better rates, design plans suited to their workforce, and reduce costs.
| Watch Scott's Testimony |
SB 305: An Act Concerning Tourism
SB 305 proposes creating a working group to study statewide tourism marketing strategies and the structure of Connecticut’s tourism promotion efforts. The goal is to evaluate how the state markets itself to visitors and explore ways to strengthen tourism development, which supports businesses such as restaurants, hotels, and other hospitality-related industries.
In testimony before the Commerce Committee, Scott expressed support for SB 305 while urging the state to take stronger action to fund tourism. He emphasized that Connecticut’s restaurants and hotels collectively support more than 170,000 jobs and generate over $1.5 billion in annual state tax revenue, including occupancy and sales taxes. Despite this major economic contribution, the state’s tourism marketing budget has been reduced from $12 million to $4.3 million. Dolch argued that reinvesting in tourism promotion - at a minimum of $20 million - would help attract visitors, strengthen small businesses, support local economies, and ensure Connecticut remains competitive as a travel destination.
| Watch Scott's Testimony | Read Testimony |
HB 5333: Regulation of Fisheries in the State
HB 5333 addresses the regulation and management of fisheries in Connecticut. Among other provisions, it includes rules affecting how seafood - particularly lobster -is harvested, sold, and regulated in the state.
In testimony before the Environment Committee, Scott and requested a targeted change affecting lobster sourcing for restaurants. The association asked lawmakers to allow Connecticut restaurants to buy and sell lobsters legally harvested in other states according to the size rules of the state where they were caught, provided proper documentation is maintained.
Connecticut’s slightly larger minimum lobster size requirement, which is just 1/16th of an inch bigger than Maine’s, forces suppliers to specially sort lobsters for the Connecticut market, raising costs by about $1.50–$2 per pound, which in hand, can significantly increase menu prices. Adjusting the rule, would help restaurants remain competitive while still maintaining proper documentation and compliance.
DOL Proposes Rolling Back 2024 Independent Contractor Rule
The Department of Labor (DOL) proposed rolling back the 2024 independent contractor rule and replacing it with an updated version of an earlier federal standard.
The 2024 rule required businesses to weigh multiple factors equally when determining worker status—an approach many said created compliance uncertainty.
Worker classification can determine who qualifies for federal minimum wage, overtime, and other employment protections. A clearer test reduces ambiguity and supports flexibility for businesses that rely on independent contractors. The proposal refocuses the analysis on whether a worker is economically dependent on a business or operates independently.
The proposal is open to public comment for 60 days, closing April 28, 2026. The National Restaurant Association will submit comments supporting a balanced, workable standard.
Connecticut Economic Update from the State Comptroller
Catch up on the latest edition of the Connecticut Economic Update from Scan Scanlon, State Comptroller.
March’s update spotlights the industry-leading innovation in technology happening in CT, as well as outlooks on the economy that has seen U.S. employers add a solid 130,000 jobs in January, consumer spending as the engine of economic growth, and layoffs remaining low. Connecticut’s unemployment rate remained low at 4.2% as of December.
NLRB Restores 2020 Joint Employer Regulation
The National Labor Relations Board (NLRB) has formally withdrawn its vacated 2023 joint employer regulation and restored the 2020 rule standard to the Code of Federal Regulations.
Under the 2020 rule, joint employer requires substantial direct and immediate control over essential terms and conditions of employment (e.g., wages, hours, hiring, discharge, discipline, supervision). Indirect or unexercised reserved control alone is insufficient.
The 2023 rule was struck down by a federal court following a legal challenge brought by a coalition of business groups, including the Restaurant Law Center.