Colorado: Look for Local Minimum Wage Laws Enacted in 2020

HB19-1210 allows up to 10% of Colorado’s local jurisdictions to enact local minimum wage rates for individuals performing work while physically within the locality’s jurisdiction, which rates cannot increase by more than$1.75 or 15% annually, whichever is higher. Also, adjoining communities may join together to implement regional minimum wage rages. County minimum wages will only be applicable to the unincorporated areas of the county. Employee time spent traveling through a jurisdiction, or for stopping to refuel or for an employee’s personal meal or errands, is not subject to local minimum wage rates.

Localities enacting local minimum wage rates exceeding state and/or federal minimums are required to provide a tip credit for employees of any business “that prepares and offers for sale food or beverages for consumption either on or off the premises,” equal to the tip credit provided in the state’s constitution. This requirement only applies to employees who regularly receive tips and only when permitted by state law.

Localities may begin enacting minimum wage laws in 2020 that become effective beginning January 1, 2021 or thereafter.