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Small business owners in the Centennial State know how important it is to stay up to date on minimum wage regulations. You want to make sure you’re in compliance, of course. But staying aware of upcoming changes also lets you better plan for the future of your business.
That’s why we put together this quick guide with information you should know about the Colorado minimum wage in 2024.
What is the minimum wage in Colorado?
The Colorado minimum wage is set to increase from $13.65 to $14.42 on January 1, 2024, which is $7.17 higher than the federal minimum wage.
The minimum wage for tipped employees is also increasing. In 2023, the minimum wage for tipped employees was $10.63 and is rising to $11.40 in January 2024.
For those who work overtime in Colorado, the minimum wage is time and a half for every hour worked over 40 in a typical work week (any seven consecutive work days).
Keep in mind that counties, cities, and towns may have their own minimum wage laws. The Denver, Colorado minimum wage, for instance, will be $18.29 per hour beginning January 1, 2024, and comes with future increases to be based on adjustments to the Consumer Price Index each year. The minimum wage for city and contract workers will also be increasing in 2024 based on the Consumer Price Index. Denver minimum wage for tipped employees will increase to $15.27 in 2024.
How should small business owners prepare for changes to the minimum wage?
Business owners should run their numbers to see how the new rates will affect their bottom line, and figure out if they will need to adjust staffing or prices.
Here are some steps you can take to make sure your business is ready for anything:
- Evaluate your staffing: Take a look at your hourly, weekly, and monthly sales to determine if your current staffing levels are appropriate. Maybe you do need more full-time employees. Or maybe your increases in sales are confined to certain times of year and you should consider hiring seasonal help.
- Hire the best: Hiring the right people is always important, but doubly so when you operate a small business. So take your time and cast a wide net when recruiting new employees. And once you have your team in place, make employee retention a priority by offering them a path to growth and development and by making your business an attractive place to work.
- Upgrade your technology: When you streamline complicated, time-consuming aspects of management with tools like automatic payroll, you can spend more time focusing on issues like staffing and growing your business. Square Payroll software includes custom payroll features for your specific business needs, and small business pricing helps keep your costs down. Square also offers small business resources to help you navigate things like COVID-19 challenges and how to get a free EIN.
While these guidelines help make sure your business is prepared and stays in compliance, it’s also advisable to discuss Colorado minimum wage laws with your accountant and lawyer.
