Colorado Minimum Wage Increases Effective Jan. 01, 2014 to $8.00 per hour
The Colorado Division of Labor has adopted Colorado Minimum Wage Order Number 30 to reflect the new state minimum wage of $8.00 per hour, a 22 cent increase over 2013. The minimum wage for “Tipped Workers” (employees who regularly receive tips) will increase to $4.98 from $4.76 per hour. Article XVIII, Section 15 of the Colorado Constitution requires the Colorado minimum wage to be adjusted annually for inflation as measured by the Consumer Price Index for the Denver-Boulder-Greeley region.
State of Colorado - 9 Year Minimum Wage History
|Effective Date||Minimum Wage||Tipped Employee Wage|
|January 1, 2014||$8.00||$4.98|
|January 1, 2013||$7.78||$4.76|
|January 1, 2012||$7.64||$4.62|
|January 1, 2011||$7.36||$4.34|
|January 1, 2010||$7.24 (Decrease)||$4.22|
|January 1, 2009||$7.28||$4.26|
|January 1, 2008||$7.02||$4.00|
|January 1, 2007||$6.85||$3.83|
|August 8, 1998||$5.50||$2.13|
Colorado State Minimum Wage vs. Federal Minimum Wage
If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage. Therefore, even though the federal minimum wage is $7.25 an hour (effective July 24, 2009), Colorado employers will be required to pay $8.00 per hour for their employees beginning January 1, 2014.
What is the Minimum Wage Worker's W2?
A Colorado full-time employee (FTE) that would benefit from this increase usually works 40 hours in one work week. If you were a minimum wage, hourly worker who worked 2,080 hours in a year without overtime in Colorado, your annual income would be $16,640. Here is the calculation: $8.00 per hour x 2,080 work hours per year = $16,640
On the other hand, if you lived in one of the states in our union that did not have a minimum wage above the current federal level of $7.25 per hour, then the workers annual income would be $15,080. Here is the calculation: $7.25 per hour x 2,080 work hours per year = $15,080
2014 State Minimum Wages – Here are the Facts
- 21 states and D.C. have minimum wages above the federal minimum wage.
- 19 states, GU, PR and VI have minimum wages the same as the federal minimum wage of $7.25.
- 4 states and AS have minimum wages below the federal minimum wage (the federal minimum thus applies).
- 1 state, New Hampshire, repealed their state minimum wage in 2011, but left the reference to the federal minimum wage.
- 5 states have not established a state minimum wage.
Minimum Wage – Makes Me Ask – How Do You Support Yourself or a Family on $8.00/Hour?
It has been interesting to review both the State of Colorado and the federal minimum wage rates and history. Neither minimum wage is able to provide a sustainable and respectful standard of living for just the day-to-day life basics such as housing, food, childcare. It’s a complex issue…not one to be resolved in this reporting. But it does make one think!
Source: Colorado Department of Labor and Employment, Division of Labor, United States Department of Labor