Colorado Minimum Wage
It's important to understand what this new minimum wage will mean for employers in Colorado. You'll be better prepared to make your finances if you know what to expect. This article will provide an overview of Colorado's minimum wage.
Each year, the Colorado minimum wage adjusts according to the cost of living. The adjustment is based on the Consumer Price Index in the Denver-Aurora-Lakewood metropolitan statistical area. The federal Bureau of Labor Statistics calculates the index. Let’s look at the Colorado Minimum Wage numbers for the years 2022 – 2023.
Colorado Minimum Wage in 2022
The minimum wage in Colorado has been increasing for several years. The most recent increases were eight cents for 2015 and 2016 and 99 cents for 2017, 2019, and 2020, and 32 cents for 2021. The current number equals $12.56 per hour after an increase of 24 cents for 2022.
As Colorado’s minimum wage increases, business owners need to run the numbers to see how the changes will affect their bottom line. For example, they may need to change prices or staffing levels.
What Will the Minimum Wage be in Colorado in 2023?
Colorado recently increased the minimum pay and overtime requirements for workers. While many exemptions aren’t affected by the changes, some will require a minimum annual salary to qualify for these changes. The law will raise the minimum payment every year by the Consumer Price Index, which measures the cost of living in Denver. This increase is adjusted each year based on the cost of living in the state. Denver’s minimum wage ordinance was approved by city council members unanimously.
Colorado regulators have proposed raising the state’s minimum salary to $13.65. According to a news release, the Colorado Department of Labor and Employment increased the state’s hourly minimum wage rate from $12.56 to $13.65. In other words, the minimum wage in Denver, Colorado, will rise by 9% in 2023. The increase will take effect on January 1, 2023.