Effective January 1, 2015 the Colorado minimum wage increases to $8.23 per hour. The minimum wage for tipped employees is $5.21 per hour, with some restrictions below. The Colorado Department of Labor and Employment adjusts the minimum wage each year based on the Consumer Price Index, a measure of inflation issued by the federal government. This year, the CPI showed an increase of 2.9% overall.
The CO minimum wage applies to all employers in the state who are covered by either the state or federal minimum wage law. When an employee is covered by both a state and federal law, the employee is entitled to the greater benefit. In this case, because the federal minimum wage is $7.25 per hour while the Colorado minimum wage is $8.23 per hour, the employee is entitled to the higher rate.
The Colorado minimum wage for tipped employees is $5.21 per hour in 2013, compared to a federal tipped minimum wage of just $2.13 per hour. However, under Colorado law, employees must receive an average of $8.23 per hour or more, over the payroll period, from wages plus tips. If the employee does not receive sufficient tips to equal that amount, the employer must pay the difference.
Employees covered by the CO minimum wage act, or Colorado Wage Order 30, must generally be paid overtime when they work more than 40 hours per week or work more than 12 hours per day. In addition, employees are entitled to overtime after 12 consecutive hours of work (not counting meal and rest breaks) even if the shift spans two days. The overtime rate is 1.5 times the employee’s average hourly rate for the payroll period.
