The State of Colorado has issued a new 2025 Colorado Minimum Wage poster. More specifically, the Colorado Department of Labor and Employment has released a revision of its Overtime & Minimum Pay Standards Order ("COMPS Order") poster. Starting January 1st, 2025, Colorado minimum wage will increase from $14.42 to $14.81 per hour. Employers must then revise their Colorado state & federal labor law posters to encompass the revision to the notice.
Why the Colorado Minimum Wage is Increasing in 2025
Colorado's state minimum wage increases each year. The wage rate is adjusted for inflation annually. Each year, the Division of Labor and Statistics within the Colorado Department of Labor and Employment issues a PAY CALC order that provides employers with inflation-adjusted minimum wage rates, tip credit-adjusted wage rates, and overtime exemption salary thresholds. The state’s minimum wage applies to Colorado employers if it’s higher than the employer’s local city or county wage rate.
Colorado 2025 Tip Credit Wage Rate and How It Affects Employers
The Colorado tip-credit adjusted wage rate for 2025 has increased to $11.79 per hour from $11.40 per hour in 2024. "Tipped employees" under Colorado law receive a certain amount in tips per hour, adjusted annually. Per the state's publication "Tips (Gratuities) and Tipped Employees Under Colorado’s Wage Law,” employers cannot pay tipped employees less than $3.02 below the established state minimum wage rate. The $3.02 rule also applies to city and county minimum wage rates that exceed Colorado’s $14.81 per hour.
City and County Minimum Wage Rates in Colorado for 2025
As mentioned previously, the state minimum only applies to Colorado employers if they are not subject to a higher city or county wage rate. In Colorado, various cities and counties enforce minimums that vary from the state’s published minimum wage:
- Denver City/County: The 2025 minimum wage in Denver will increase from $18.29 to $18.81 beginning January 1.
- City of Edgewater: The Edgewater minimum wage will increase from $15.02 to $16.52 per hour in 2025.
- Boulder County (Unincorporated areas only): The county’s minimum wage rate is rising by eighty-eight cents in 2025, from $15.69 to $16.57.
- City of Boulder: Boulder's minimum wage in 2025 will be $15.57 per hour.
Key Employer Takeaways for Complying with the 2025 Colorado Minimum Wage
Employers must take the following actions to ensure compliance with Colorado's minimum wage:
- Employers are required to conspicuously display the revised 2025 Overtime & Minimum Pay Standards (COMPS) Order poster in an area frequently visited by employees. This must be done no later than January 1, 2025.
- If a city or county minimum wage rate applies, employers must also meet any related posting requirements enforced by their municipal government.
- Failure to comply with Colorado and federal labor regulations may result in citations, financial penalties, or legal action. Therefore, it is essential for employers to display the Colorado labor law posters in a visible location to ensure employees are aware of their rights and obligations.
- Employers should ensure the Colorado minimum wage poster is placed in a visible location where employees can easily view it. This ensures that workers remain informed about current wage requirements and that employers remain fully compliant with state laws.
FAQs
What is the minimum wage in Colorado for 2025?
In 2025, the minimum wage in Colorado will increase to $14.81 per hour, up from $14.42 in 2024. This rate applies to most employees, with certain exceptions for tipped employees and other specific classifications. For tipped employees, the minimum cash wage will be $11.79 per hour, with employers allowed to take a $3.02 per hour tip credit, provided that tips bring the employee’s total earnings to at least the full state minimum wage. The minimum wage increase aligns with the state's cost-of-living adjustments and inflation rate.
