On the same date, the Colorado minimum wage for tipped employees will also increase 12 cents, from $4.22 to $4.34 per hour. Under Colorado law, employers can take a maximum tip credit against the minimum wage of $3.02 per hour. However, if the employee does not average at least $7.36 per hour in tips and wages combined, the employer must pay the difference as wages.
Colorado employers must update their labor law posters, including minimum wage posters. Employers are required to prominently display the posters in an area accessible by all employees.
Colorado is one of a dozen states that provide for an annual adjustment in the state minimum wage based upon the cost of living. On January 1, 2010 the state minimum wage actually decreased 4 cents per hour from $7.28 to $7.24. However, most employees were still entitled to the federal minimum wage of $7.25 per hour. The annual adjustment is base don the Consumer Price Index for All Urban Consumers in the Denver-Boulder-Greeley combined metro area. Colorado is one of the few states that permit a reduction in the minimum wage.
The Colorado minimum wage generally applies to private sector (non-government) employees in certain industries including: retail, service, food, beverage, health, medical and commercial support service. It does not apply to government employees or those in manufacturing, construction or the wholesale industry.
The statues provide myriad (more…)
On January 1, 2010 the Colorado minimum wage will be reduced by 4 cents, from $7.28 per hour to $7.24 per hour. However, most Colorado employers will be required to pay $7.25 per hour under the federal minimum wage, the Fair Labor Standards Act.
The minimum wage for tipped employees will decrease from $4.26 per hour to $4.22 per hour according to the Colorado Division of Labor & Employment. If the employee does not average $3.02 per hour over the payroll week, the employer must pay the difference.
The Colorado minimum wage is adjusted annually for inflation. Unlike most states, however, when the cost of living goes down – as it has in the past year – the Colorado minimum wage can be reduced. While a variety of states including Washington, Oregon and Florida increase the minimum wage annually, there is no provision for the automatic reduction of minimum wage in most states.
Colorado employers need to update their state minimum wage posters immediately.
Although the Colorado minimum wage reduction is only 4 cents, it is far better than the annual increases of 20 cents or more in recent years. In 2009, for example, the Colorado minimum wage increased (more…)
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.
Because the prices of food and other commodities have risen dramatically, (more…)
The Colorado minimum wage will increase by 26 cents, from $7.02 to $7.28 per hour, effective January 1, 2009. The minimum wage for tipped employees in the state will also increase by 26 cents, from $4.00 to $4.26 per hour.
Under Article XVIII, Section 15 of the Colorado Constitution, as amended in 2006, the Colorado minimum wage is adjusted annual for inflation, as measured by the Consumer Price Index for Colorado. That law also increased the Colorado minimum wage to $6.85 per hour in 2007, and capped the tax credit employers can take for tipped workers at $3.02 per hour.
Colorado’s minimum wage increased to $7.02 on January 1, 2008, as a result of the Colorado Minimum Wage Order 24. The new minimum wage replaces the previous minimum of $6.85, which went into effect on January 1, 2007.
This new Colorado minimum wage doesn’t apply to all workers. Unlike other states with similar laws, Colorado’s minimum wage law applies only to retail and service industries, such as commercial support, health and medical industries and food and beverage industries.
Federal law requires an employee be paid overtime at 1.5 times the usual hourly rate for any time worked over 40 hours in a week. Most of the country is covered by this “overtime”. In Colorado, workers eligible under the minimum wage law are eligible for overtime after 40 hours a week, or for more than 12 hours in one day. Several states, like Colorado have state laws regarding overtime, but many do not. In those states, an employee is either covered by federal overtime law or isn’t covered at all.
Colorado has made several recent changes in its employment laws.
Colorado Statute 8-2-122 became law on January 1, 2007, and requires every employer to copy and maintain those copies of the worker’s identification documents for the federal I-9 form. Additionally, the employer must file a state affirmation within 20 days of hiring a new worker. In this affirmation the employer declares that he or she examined the worker’s identification documents and didn’t alter them in any way. It also states that the employer didn’t knowingly hire an illegal alien.
Colorado isn’t the only state enacting tough new immigration laws. Arizona, too, has established legislation regarding undocumented employees.
As of January 1, 2008, any Arizona employer who knowingly or willingly hires illegal aliens will face tougher sanctions. Rather than being fined, an employer can actually be shut down. The first violation of this law garners the business a 10 day suspension of its license. A second violation results in the employer permanently losing its business license.
Vermont, Missouri and New Mexico are among the fourteen states to raise their state minimum wages as of January 1, 2008. The increases in these fourteen states, however, are just the beginning of a year full of changes.
On the 1st of July, 2008, West Virginia, Illinois, Michigan, Kentucky and Pennsylvania will enact raises to their state minimum wages, too. Michigan and Illinois will each up its minimum by 25 cents per hour. Illinois’s rate will go from $7.50 to $7.75 and Michigan’s new rate will be $7.40 per hour.
Workers in Kentucky will receive a raise in minimum wage of $6.55 per hour, a bump of 70 cents from $5.85. A 70 cent raise will also be given to minimum wage employees in West Virginia resulting in a new rate of $7.25 per hour. Pennsylvania workers, however, will enjoy the biggest wage bump. On July 1, 2008, Pennsylvania’s minimum will jump a whopping 90 cents from $6.25 to $7.15 per hour.
Many states have their own minimum wage laws, and several tie the increases to their minimum rates to the increase in the federal minimum wage. On July 24, 2008, therefore, North Carolina, North Dakota and Indiana, among others will enact a rise in their minimum wage rates, too.
Minimum wage in the District of Columbia is also tied to the federal minimum wage. The D.C. law, however, requires its minimum to be at least $1.00 more than the federal rate. On July 24, 2008, therefore, D.C.’s minimum wage rate will become $7.55 per hour, exactly $1.00 greater