Colorado Proposes Raising Minimum Wage to $12.32 in 2021

Colorado’s hourly minimum wage would rise to $12.32 from $12 on Jan. 1 under a proposal issued Sept. 14 by the state Department of Labor and Employment.

The tipped-worker hourly minimum wage would rise to $9.30 from $8.98, based on a $3.02 tip credit.

Colorado reverts to an annual review of its minimum-wage for inflation-related adjustments on Jan. 1, as it did before 2017, when scheduled wage increases took effect through 2020, under Amendment 70.

The state’s hourly minimum wage would rise 32 cents in 2021 based on the relevant Bureau of Labor Statistics’ consumer price index having risen 2.7% from the first half of 2019 to the first half of 2020.

The Division of Labor Standards and Statistics is to offer hearing and comment periods on the proposal under the state Administrative Procedure Act.

The required minimum-wage adjustment is to be published in the state register by Sept. 30 as a proposed rule with a remote hearing Nov. 2. The deadline for comments is Nov. 5. Final rules are to be adopted by Nov. 10 and take effect Jan. 1.

Separately, Denver’s hourly minimum wage is to rise to $14.77 from $12.85 on Jan. 1 under a measure (19-1237) that was signed Nov. 27 by Mayor Michael B. Hancock (D). The minimum wage is to increase annually until 2023, when annual inflation-related adjustments are to take effect. The measure retained the state’s $3.02 tip credit for food and beverage workers.