2017 Colorado Minimum Wage Increases

  • Posted by: J. Kent Gervasini |
  • 1/3/17 |
  • 5:45 AM
  • 1538 Views
2017 Colorado Minimum Wage Increases

Denver and Colorado Employers - Heads Up!
         
          
Minimum Wage Increases to $9.30/Hour

On Nov. 8, 2016, Colorado voted to raise the minimum wage by passing Amendment 70.  Therefore, effective Sunday, Jan. 1, 2017, Colorado’s minimum wage increases from $8.31 to $9.30 in 2017, and over the next four years, scheduled increases will bring the minimum wage up to $12.00 per hour with annual adjustments on Jan. 1 thereafter. This will affect all employers--staffing firms, temporary help agencies, contractor and professional employer organizations (PEO), for profit or not for profit...if you are an employer large or small, you must comply.

Calls to Raise Minimum Wage Have Gotten Louder
               - $15.00/Hour, a Goal for Labor Activists

Colorado, however, is not alone. The minimum wage rate is set to increase—in 21 states, at least 22 cities, four counties, and one region—on or about Jan. 1. Many states are in the process of multiyear increases to the minimum wage and annual increases will continue to climb. Of course, California, a bell weather state, has even more ambitious plans with annual increases of $0.50 next year followed by $1 per hour raises in 2019, 2020, 2021, and 2022, bringing the state to the $15.00 mark.  

Per Amendment 70, Article XVIII, Section 15 of the Colorado Constitution

  • Effective January1, 2017, Colorado's minimum wage is increased to $9.30 per hour and is increased annually by $0.90 each January 1 until it reaches $12 per hour effective January 2020, and thereafter is adjusted annually for cost of living increases, as measured by the Consumer Price Index used for Colorado.
     
  • This minimum wage shall be paid to employees who receive the state or federal minimum wage.
     
  • No more than $3.02 per hour in tip income may be used to offset the minimum wage of employees who regularly receive tips. See charts below.
State 2017 2016 2015 2014 Scheduled Increases
Federal $7.25 $7.25 $7.25 $7.25  
Federal / Contractors $10.20 $10.15 $10.10 NONE Adjusted 
Colorado $9.30 $8.31 $8.23 $8.00 Increases to:
$10.20 - 01/01/2018
$11.10 - 01/01/2019
$12.00 - 01/01/2020
*then adjusted annually
on Jan 1.

 

State Minimum
Combined 
Wage as of 1/1/17
Maximum Tip Credit Allowed
for Tipped Employees
Minimum Cash Wage
for Tipped 
Employees
Notes
Federal $7.25 $5.12 $2.13 Tipped employes must regularly earn at least $30 per month in tips
Federal / Contractors $10.20 $3.40 $6.80 Minimum tipped wage will increase by 95 cents per year until it reaches 70% of the minimum combined wage.
Colorado $9.30 $3.02 $6.28 Combined wage
increases to:

$10.20 - 01/01/2018
$11.10 - 01/01/2019
$12.00 - 01/01/2020
*then adjusted annually
on Jan 1.
Tipped employee must regularly earn at least $30 per month in tips.


 

The information above does not constitute legal advice.  Employers and staffing agencies should consult a Colorado labor or employment attorney with additional questions or for guidance and more information.

 

Source:  U.S. Departmet of Labor and State statues, regulations, and websites; https://www.colorado.gov/pacific/cdle/minimumwage

www.JKentStaffing.com

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