The Colorado Department of Labor and Employment has released the proposed changes to the state minimum wage for 2018. The proposed changes align with the changes voted into the state constitution as Amendment 70 last year. Effective January 1st, 2018 the minimum wage will increase to $10.20 per hour and will continue to increase by $0.90 per year until it reaches $12.00 per hour in the year 2020. Thereafter the minimum wage will be adjusted annually based off the Consumer Price Index for Colorado.
The maximum amount an employer may offset minimum wage by for tipped employees remains the same at $3.02 per hour. Because the tip credit has not changed, the Tipped Employee Minimum Wage has increased to $7.18 per hour.
Also, as a reminder, the employee is entitled to CO state minimum wage if either of the two situations apply: 1) the employee is covered under the Colorado Wage Order, or 2) the employee is covered under federal minimum wage provisions through the FLSA.
Additional information can be found at these links: