Small Businesses and Employees both have a vested interest in knowing what happens to the minimum wage laws in Colorado.
Every change even a little cent has an effect on both the business and the employee’s bottom line.
So, what changes have been made?
What is the 2019 minimum wage in Colorado?
The minimum wage in Colorado increases to $11.10, $3.85 higher than the federal minimum wage.
If you have tipped employees, no more than $3.02 per hour in tips can be used to offset the minimum wage. So, if an employee’s tips combined with the employer’s cash wage of at least $7.18 per hour do not equal $10.20 an hour, the employer must make up the difference in cash wages.
Are there plans to change the minimum wage?
Colorado’s Amendment 70, effective January 1, 2017, put in place a schedule of annual minimum wage increases. Every January 1, the minimum wage will increase by $0.90 until it reaches $12 per hour in January 2020. After that, it will be adjusted annually for cost of living increases, as measured by the Consumer Price Index used for Colorado.
Date Minimum Wage
January 1, 2017 $9.30
January 1, 2018 $10.20
January 1, 2019 $11.10
January 1, 2020 $12.00
The same goes for the minimum wage for tipped employees. It’s $7.18 in 2018. It will rise by $0.90 to $8.08 in 2019 and $8.98 in 2020.
Colorado seems to be very progressive in instituting a minimum wage hike in its economy.
Raising the minimum wage on a national level has become a contentious issue.
Some states are pushing full steam ahead to raise their minimum wage rates, while other states are pushing back at raising their minimum wage.
There are good arguments on both sides of the table.
The plus of raising minimum wage rates is that workers will have more money in their pockets to spend.
Which in theory will help stimulate the economy, and businesses will be able to flourish.
But the other side of the theory says that when you raise the minimum wage you are taking money out of businesses pockets, which will have the effect of forcing them to fire employees.
This will in theory have the effect of depressing the economy, and businesses and employees will suffer.
Both sides have a good point. Who is right? Or who is wrong?
Colorado has decided that raising their minimum wage is the best way to support their citizenry.
What do you guys think?