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Author: ADP Admin/Tuesday, January 5, 2021/Categories: Compliance Corner
Colorado's minimum wage will increase to $12.32 per hour on January 1, 2021. The change is a result of an annual adjustment for inflation.
Tipped employees:
The minimum direct cash wage for tipped employees will increase to $9.30 per hour on January 1, 2021. If a tipped employee's cash wages and tips fail to meet or exceed $12.32 per hour, employers must make up the difference.
Compliance recommendations:
Effective January 1, 2021, Colorado employers must pay all non-exempt employees at least $12.32 per hour. Colorado employers must also post an updated Colorado Overtime and Minimum Pay Standards notice. Please contact your dedicated service professional with any questions.