Denver’s minimum wage will rise to $17.29 per hour on January 1, 2023. In 2023, for the first time, the increase will be determined using the correct Consumer Price Index (CPI), as stated by municipal officials in August 2022.
With the current rate of inflation, minimum wage levels are expected to soar higher than may otherwise be seen, and indexing of rates has been increasingly common in recent years. This is because indexing of rates has become increasingly commonplace.
In 2022, Denver will have a minimum wage of $15.87 per hour. In 2023, minimum wage earners may expect a rise of almost $1.50 per hour. (Colorado’s rate for the year 2023 was also just made public.) Now here you need to know about Minimum wage Denver.
Denver’s Minimum Wage
In 2019, Denver passed its own law that mandates annual increases to be imposed on January 1 starting in 2020 and continuing through 2022, shortly after the state of Colorado gave individual municipalities the right to establish their own minimum wage rates.
But going forward, Denver’s rate will be tied to the CPI for the Denver-Aurora-Lakewood area, which was 8.94% during the decade that the city uses. This would lead to a rate of $17.29 in 2023, up from the current cost of $15.87.
In case you forgot, Colorado’s minimum wage is $12.56 per hour as of 2019 (it will be raised again in 2023 to account for inflation). Although no formal announcement has been made by state officials as of the writing of this article, it is expected to increase to $13.68.
Minimum wage for tipped workers in Denver, Colorado
The state of Colorado allows employers to deduct the value of gratuities made to their workers, but only in the food and beverage sector. Only the minimum wage in Denver is affected by this.
Employers in this group may claim a $3.02 per hour tip credit for each worker, providing they can prove that the worker earned at least that much in tips. Tipped employees in the food and beverage sector may anticipate a minimum wage hike of $14.27 per hour by the year 2023.
Analysis of Denver and Surrounding Area Minimum Wages
Although businesses outside Denver city limits are not obligated to pay Denver’s minimum wage, they are still required to pay the state-mandated minimum wage rate. Denver’s new rate is based on the Consumer Price Index for the Denver-Aurora-Lakewood area.
When Denver’s new rate for 2023 was revealed, city officials urged companies to double-check their locations to ensure they were paying the correct minimum wage.
Businesses in Denver should not use a worker’s mailing address as a criterion for whether or not to pay the city’s local minimum wage. Particularly critical for companies with locations throughout the nation, verifying compliance with employment standards at each site is a key component of compliance. Companies must inform their employees of the jurisdiction that applies to their workplaces.
Conclusion
Wage Floor Standard For some years, minimum wage management has been a serious challenge for large companies in the United States. The federal minimum wage has not increased in value since 2009. Despite Congress’ inaction, many subnational jurisdictions, including states, counties, and municipalities, persist in setting their own rates.
