Colorado Sets 2022 Minimum Wage

Colorado’s 2022 minimum wage was set this week, opening up a comment period before the rate becomes official.

The minimum wage in Colorado for 2022 is $12.56, effective Jan. 1, 2022.

“As we build back better, it’s great to see Colorado workers get a decent raise on the minimum wage to $12.56/hour as our state builds an economy that works for everybody,” Gov. Jared Polis said in a statement. “Investing in upskilling to help workers have the skills needed to earn much more than minimum wage is one of our top priorities, so Colorado can continue to be a place where everyone can thrive.”

Minimum Wage Management. Simplified.

Colorado 2022 Minimum Wage

Minimum wage in Colorado goes up from $12.32 today to $12.56 in 2022 under annual increases based on the Consumer Price Index. (However, the rates were increased by larger amounts from 2017 through 2020 due to a successful 2016 ballot measure.)

Meanwhile, the minimum wage for tipped employees increases to $9.54 on Jan. 1, 2022.

Under a constitutional mandate, Colorado officials each September publish proposed rules for minimum wage, which is followed by a public comment period. This year, the comment period closes Nov. 3. It’s a somewhat unique situation in how Colorado — one of the most employee-friendly states in the U.S. — establishes its minimum wage rate.

Find information on making comments on the governor’s website.

Lastly, employers should note that while Colorado in 2020 gave cities the power to establish their own minimum wage rates, only Denver has set its own minimum wage.

More Info on Colorado Employment Law

Minimum Wage in 2022

When jurisdictions pass laws to increase minimum wage rates — a major employment law trend over the past several years — they often start with a set schedule and move to indexed rates after a period of years.

And at this time of year, many of those jurisdictions with indexed minimum wage rates begin releasing the updated figures for the next year. It creates a difficult situation for employers to know what rates will be when scheduled increases change over to indexed rates.

Also, while most jurisdictions with their own rates increase them at the start or middle of the year, there are exceptions for employers to watch out for. For example, Florida saw its minimum wage increase Sept. 30, 2021, and Connecticut has an odd schedule for its minimum wage increases.

Related: How Many States Have a $15 Minimum Wage?

Conclusion

Employers with locations in Colorado should note the likely change to the state’s minimum wage rate.

The state has a full rundown of Colorado’s minimum wage rules on its website.

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.