The Colorado state Minimum Wage will increase to $7.64 per hour from the current $7.36 per hour starting on January 1, 2012. If an employee is covered by federal and Colorado state minimum wage laws, the employer must pay the higher minimum wage. 

Article XVIII, Section 15, of the Colorado Constitution, requires the  Colorado Minimum Wage to be adjusted each year for inflation.

 Colorado State Minimum Wage vs Federal Minimum Wage

 Minimum Wage

If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage. Federal minimum wage is currently $7.25 per hour, which is lower than the Colorado state minimum wage of $7.64. Therefore, based upon current information, covered employers in Colorado will have to pay their employees the higher value of $7.64 per hour under Colorado law beginning January 1, 2012.

 Tipped Minimum Wage

If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage for tipped employees. Federal tipped minimum wage is currently $2.13 per hour, which is lower than the Colorado tipped minimum wage of $4.62 per hour. Therefore, based upon current information, covered employers in Colorado will have to pay their tipped employees the higher value of $4.62 per hour under Colorado law beginning January 1, 2012.

 If an employee’s tips combined with the employer’s cash wage of at least $4.62 per hour do not equal the minimum hourly wage, the employer must make up the difference in cash wages.

Learn more at the Department of Labor & Employment Web Portal