The Consumer Price Index for Denver Boulder Greeley has increased by 3.8%, which means a new minimum wage rate for 2012. The minimum wage rule enacted in 2006 to the Colorado Constitution requires the state’s minimum wage rate to be adjusted each year for inflation. The inflation adjustment is based on the US Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U) for the Denver-Boulder-Greeley combined area. This adjustment is based on the difference between the CPI-U from the first half of the prior year and the first half of the current year. This adjustment will increase the 2012 minimum wage rate to an estimated $7.64 per hour, effective January 1, 2012. The Tip credit for 2012 will again not change, so the minimum wage rate for “Tipped Employees” will be $4.62 ($7.64 – $3.02).
The above quoted rate increase is an estimate based off of the CPI change. The state should officially announce the rate increase sometime late November or early December. StaffScapes will keep you updated once the state announces any additional details.