Starting January 1, 2020, Colorado’s minimum wage will increase from $11.10 to $12 per hour. The minimum wage for tipped employees will increase from $8.08 to $8.98 per hour. In 2021 and annually thereafter, Colorado’s minimum wage will be adjusted for cost-of-living increases, as measured by the Consumer Price Index for Colorado.
The current federal minimum wage rate is $7.25 per hour, but if an employee is covered by both federal and Colorado state minimum wage laws, an employer must pay the higher minimum wage.
Denver’s minimum wage will increase from $11.10 to $12.85 per hour on January 1, 2020. It will rise to $14.77 an hour on January 1, 2021, and to $15.87 an hour on January 1, 2022. Starting in 2023, Denver’s minimum wage will be adjusted annually based on the Consumer Price Index for Colorado.
Colorado employers may be fined for failure to pay employees the minimum wage. In addition, pursuant to Colorado’s new wage theft statute, criminal penalties may be imposed against employers who willfully refuse to pay employee wages.
If you have any questions about the new Colorado or Denver minimum wage rates, please feel free to contact Mary Will or Jill Zender.