Understanding Colorado’s Minimum Wage

Understanding Colorado’s Minimum Wage
Small business employers and their employees should be aware of the minimum wage requirements in Colorado.
by Colleen Egan Oct 02, 2023 — 2 min read
Understanding Colorado’s Minimum Wage

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:

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.

Colleen Egan
Colleen Egan writes for Square, where she covers everything from how aspiring entrepreneurs can turn their passion into a career to the best marketing strategies for small businesses who are ready to take their enterprise to the next level.


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