labor lawAdivision of labor law center

On January 1, 2009 the Colorado minimum wage increased to $7.28 per hour. The hike from $7.02 hourly represents a 26 cents per hour increase.  The new minimum wage tracks the region’s inflation rate.

 

According to the Colorado Department of Labor and Employment , the minimum wage must be annually adjusted for inflation. In the Denver-Boulder-Greeley area of Colorado, the Consumer Price Index (or CPI) showed an increase of 3.7%. As a result, the minimum wage showed a corresponding increase.

 

Tracking the inflation rate is part of Colorado law. Under Article XVIII, Section 15 of the Colorado Constitution, employers are required to adjust the pay of their minimum-wage employees every year to match the inflation rate. The law was last amended in 2006.

 

Donald J. Mares, Colorado’s Executive Director of Labor as well as the top officer of the Colorado Department of Labor and Employment, published the new minimum wage figures recently.

 

Because the prices of food and other commodities have risen dramatically, the cost of living in general did as well, and 2010 may see another sharp increase in the inflation and therefore in the Colorado minimum wage.

 

At the same time, difficult economic conditions and this automatic inflation increase appear to combine to make it difficult for businesses to offer entry-level positions, according to some observers. Feeling the pinch most noticeably are the smaller businesses.

 

As in other states, most employees in Colorado are covered by both federal and state laws regarding labor issues. As a consequence, any employee in Colorado, according to Colorado law, is entitled to the minimum wage if he or she is entitled to the federal minimum. The greater benefit applies for all employees who are covered by both national and state laws. The federal minimum wage is $6.55, and the Colorado minimum wage is $7.26. In Colorado, then, employees are entitled to the $7.26 per hour rate.

 

Minimum wages for Colorado employees who work in jobs involving tips are also receiving a 26 cents per hour increase. Their pay (not including tips) has gone from $4.00 to $4.26 an hour as of the first day of 2009.

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