2021 Increase in Colorado General Minimum Wage Rate

Beginning on Jan. 1, 2021, the minimum wage rate for most employees in Colorado is $12.32 per hour.

Wages are defined as the entire amount of compensation an employee receives for his or her labor or services. This includes bonuses, commissions, paid sick leave (if paid under the Colorado Health Families and Workplaces Act) and vacation pay, but does not include severance pay.

With limited exceptions and exemptions, state minimum wage rate generally applies to employees. State law defines “employee” as any person who performs labor or services for the benefit of an employer, including any migratory laborer.

In Colorado, minimum wage is governed by both the Colorado Wage Act (CWA) and rules issued by the Colorado Department of Labor and Employment (CDLE). Employers subject to the CWA must display a poster (available here) in an area frequented by employees where it may be easily read during the workday. If a work site or other conditions make a physical posting impractical (including private residences employing only one worker, and certain entirely outdoor worksites lacking an indoor area), employers must provide a copy of the poster to each employee within his or her first month of employment and also make it available to employees upon request. Employers must also display information regarding regular paydays and the place and time of payment.

For the full summary of this legislation, including exemptions and how it affects wage rates for minors, please click here.

Disclaimer: The information presented in this post is provided for informational purposes only and shall not be considered legal or tax advice. Please consult with your legal or tax advisor for specific legal or tax advice.

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