With the passage of Amendment 70, as of January 1, 2017, Colorado’s minimum wage was increased to $9.30 per hour for 2017, and it will be increased annually by $0.90 each January 1 until it reaches $12 per hour effective January 2020. Thereafter it will be adjusted annually for cost of living increases, as measured by the Consumer Price Index used for Colorado.
Effective January 1, 2018, the minimum wage in Colorado will rise to $10.20 per hour for non-tipped employees and to $7.18 per hour for tipped employees, plus tips.
State vs. Federal Minimum Wage
In addition to state minimum wage requirements, there are also federal minimum wage requirements. If an employee is covered by both state and federal minimum wage laws, the law which provides a higher minimum wage or sets a higher standard applies.
Minimum Wage: If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage. Federal minimum wage is currently $7.25 per hour, which is lower than the 2017 Colorado state minimum wage of $9.30. Therefore, based upon current information, covered employers in Colorado will have to pay their employees the higher value of $9.30 per hour under Colorado law.
Tipped Minimum Wage: If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage for tipped employees. Federal tipped minimum wage is currently $2.13 per hour, which is lower than the 2017 Colorado tipped minimum wage of $6.28 per hour. Therefore, based upon current information, covered employers in Colorado will have to pay their tipped employees the higher value of $6.28 per hour under Colorado law.
- Every employer must keep a true and accurate record for each employee including an itemized earnings statement for at least 3 years after the wages were due.
- Whenever employers are subjected to both federal and Colorado law, the law providing greater protection or setting the higher standard shall apply.
Please note that the information included above is for general informational purposes only. State and local laws change frequently and, as such, we cannot guarantee the accuracy or completeness of the information featured in this article at the time it was published. For more detailed information regarding state or local laws, please contact Colorado state labor department.