The two sides squared off Thursday at a legislative hearing.
Connecticut Working Families is backing legislation that would increase the minimum wage from $8.25 an hour to $9 on July 1. The legislation also calls for automatic raises in the minimum wage tied to increases in the Consumer Price Index, the federal measure of inflation.
The Connecticut Business and Industry Association opposes the legislation. It says higher labor costs will force employers to hire fewer workers and increase prices.
A spokesman says Gov. Dannel P. Malloy supports "the ideals behind the legislation," but understands the cost pressures facing businesses.