Overview of Colorado's Minimum Wage Requirements
As of 2024, the minimum wage in Colorado is $14.42 per hour. This rate applies to most employees, with a few exceptions such as tipped employees, who earn $11.40 per hour. The minimum wage in Colorado has seen a steady increase over the years. For instance, in 2023, the minimum wage was $13.65 per hour, an increase from the previous year's rate of $12.56 per hour.
The minimum wage is adjusted annually based on inflation, implying that it will continue to rise in the future. Employers are required to pay premium rates for work exceeding certain designated hours. Specifically, premium pay is required after 12 hours in a day and 40 hours in a week.
Understanding Local Minimum Wage Variations
It's important to note that some local areas in Colorado have different minimum wage requirements. For instance, in Denver, the minimum wage is $18.29 per hour, or $15.27 with a tip credit. In Edgewater, the minimum wage is $15.02 per hour, or $12.00 with a tip credit. In unincorporated areas of Boulder County, the minimum wage is $15.69 per hour, or $12.67 with a tip credit.
These wages are adjusted annually for inflation. it's critical for both employers and employees to stay informed about the current wage requirements in their specific local areas to ensure compliance and fair compensation.
Minimum Wage Eligibility and Exemptions
In the state of Colorado, the minimum wage applies to most employees, with a few exceptions. Exceptions to this rule include tipped employees, some student workers, and other exempt occupations. Tipped employees, defined as those who receive more than $30 in tips per month, can be paid a lower cash wage than the standard minimum wage.
The Colorado minimum wage is applicable to all adults and emancipated minors. However, minors under the age of 18 may be paid up to 15% less than the current Colorado minimum wage. If the Colorado minimum wage happens to be lower than the Federal Minimum Wage, the Federal Minimum Wage will take precedence.
Minimum Wage Considerations and Compliance Tips
Food business employers in Colorado need to be aware of several key minimum wage legal and compliance considerations. The Colorado Overtime and Minimum Pay Standards Order (COMPS Order) #39, effective from January 1, 2024, governs the state's minimum wage and overtime rules. Notably, from January 1, 2024, employees must be paid a salary of at least $1,057.69 per week (equivalent to $55,000.00 annually) to be exempt from overtime.
For tipped employees, who regularly receive more than $1.64 per hour in tips, employers can take a tip credit towards the minimum wage. However, employer-required sharing of tips with management, or with employees who do not perform significant customer-service functions, or deduction of credit card processing fees from tipped employees, will nullify allowable tip credits towards the minimum wage.
FAQs
- What is the current minimum wage in Colorado? As of 2024, the minimum wage in Colorado is $14.42 per hour.
- Are there any exceptions to the minimum wage in Colorado? Yes, exceptions include tipped employees, some student workers, and other exempt occupations.
- What is the minimum wage for tipped employees in Colorado? For tipped employees, the wage is $11.40 per hour.
- Are minors eligible for the minimum wage in Colorado? Minors under the age of 18 may be paid up to 15% less than the current Colorado minimum wage.
Information Source Links
- Colorado Department of Labor and Employment
- Workstream US Wage Index
- US Department of Labor
- Denver Government
- Colorado Minimum Wage
- Colorado Overtime and Minimum Pay Standards Order (COMPS Order) #39
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