🇺🇸 Colorado Minimum Wage — 2026 UPDATE

Colorado Minimum Wage 2026

⚠️Informational only — not legal or tax advice.

Last Updated: February 4, 2026
Last Reviewed: February 4, 2026
Applicable Period: 2026
Jurisdiction: State of Colorado, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter

Minimum Wage in Colorado 2026

Table of Contents

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Introduction

The minimum wage in Colorado establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, Colorado has a statewide minimum wage of $15.16 per hour, with specific provisions for tipped employees and local jurisdictions that have enacted higher minimum wage ordinances.

Minimum wage regulations in Colorado operate under Section 15 of Article XVIII of the Colorado Constitution alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state or local minimum wage rates exceed the federal standard, employers must comply with the higher applicable rate. Colorado allows a tip credit of up to $3.02 per hour for tipped employees, and three local jurisdictions—Denver, Boulder, and Edgewater—have enacted higher minimum wage ordinances.

This page provides an authoritative overview of Colorado minimum wage law for 2026, including current rates, scheduled increases, tipped employee provisions, local wage ordinances, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.

Colorado Minimum Wage — 2026 Quick Reference
Category Rate Effective Date Official Source
State minimum wage $15.16/hour January 1, 2026 Colo. Const. art. XVIII, § 15
Tipped minimum wage $12.14/hour January 1, 2026 7 CCR 1103-1 (COMPS Order)
Maximum tip credit allowed $3.02/hour — Colo. Const. art. XVIII, § 15
Next scheduled increase $15.71 January 1, 2027 (estimated) CPI-indexed
Rate adjustment mechanism CPI-indexed annually — Colo. Const. art. XVIII, § 15
Federal minimum wage $7.25/hour July 24, 2009 FLSA
Local minimum wages Yes (3 jurisdictions) Varies Local ordinances
Minor employees (under 18) $12.89/hour (85%) January 1, 2026 7 CCR 1103-1

Last verified: February 4, 2026 via Colorado Department of Labor and Employment

Overview of Minimum Wage Law in Colorado

Legal Authority

Colorado minimum wage requirements are established under Section 15 of Article XVIII of the Colorado Constitution, adopted by voter initiative in 2006 and amended in 2016 to establish a path to $12 per hour by 2020 with annual inflation adjustments thereafter. The Colorado Department of Labor and Employment, Division of Labor Standards and Statistics administers and enforces minimum wage regulations in Colorado through the Colorado Overtime and Minimum Pay Standards (COMPS) Order, codified at 7 CCR 1103-1.

The current constitutional provision requires that Colorado’s minimum wage be adjusted annually for cost of living increases, as measured by the Consumer Price Index for Urban Consumers (CPI-U) for the Denver-Aurora-Lakewood area. The Division of Labor Standards and Statistics calculates and announces the new rate each fall for implementation on January 1 of the following year.

Relationship to Federal Law

Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Colorado law operates independently of federal minimum wage standards through its constitutional provision. When both state and federal minimum wage laws apply, employers must pay whichever rate is higher.

Because Colorado’s minimum wage of $15.16 exceeds the federal minimum, most covered employers must comply with the state rate. However, employers not covered by state requirements but covered by federal law must still comply with FLSA standards.

Coverage Scope

The Colorado Overtime and Minimum Pay Standards (COMPS) Order applies to all private sector employers and employees performing work within Colorado, with specific exemptions detailed in the regulation. The COMPS Order covers employers regardless of size, except where specific exemptions apply. Employees working four or more hours per week for an employer within Colorado’s boundaries are generally covered by minimum wage requirements.

Higher Rate Principle

The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In Colorado, this means employers must identify and apply whichever minimum wage rate provides employees the highest hourly compensation based on where work is performed.

Current Minimum Wage Rates in Colorado 2026

Standard Hourly Minimum Wage

As of January 1, 2026, the standard minimum wage in Colorado is $15.16 per hour for covered employees. This rate applies to all non-exempt employees working in Colorado, regardless of employer size or industry. The rate represents a 2.36% increase from 2025’s rate of $14.81, reflecting the annual Consumer Price Index adjustment required by the Colorado Constitution.

Colorado adjusts its minimum wage annually on January 1 based on the Consumer Price Index for Urban Consumers (CPI-U) for the Denver-Aurora-Lakewood Metropolitan Statistical Area. The Colorado Department of Labor and Employment calculates the adjustment each summer and adopts the new rate through its annual fall rulemaking process, publishing the rate in the Publication and Yearly Calculation of Adjusted Labor Compensation (PAY CALC) Order.

The standard statewide rate applies uniformly across all Colorado jurisdictions, except where local governments have enacted higher minimum wage ordinances under authority granted by House Bill 19-1210.

Youth and Training Wages

Colorado permits reduced wage rates for non-emancipated minor employees under age 18. Under the COMPS Order, employers may pay non-emancipated minors 85% of the standard minimum wage, resulting in a youth minimum wage of $12.89 per hour for 2026.

This reduced rate applies only to employees who are both under age 18 and not legally emancipated. Emancipated minors must be paid the full standard minimum wage of $15.16 per hour. No separate training wage provisions exist in Colorado law—employers must pay at least the applicable minimum wage from the first hour of employment for all employees except non-emancipated minors.

Scheduled Increases

Colorado’s minimum wage increases annually on January 1 based on changes in the Consumer Price Index for Urban Consumers (CPI-U) for the Denver-Aurora-Lakewood area. The Division of Labor Standards and Statistics calculates and announces the adjusted rate each fall, typically in September or October.

For 2027, the minimum wage is projected to increase to approximately $15.71 per hour, assuming a 3.6% CPI adjustment similar to recent years. However, the actual rate will depend on the official CPI-U calculation published in August 2026. The Division publishes the confirmed 2027 rate in the annual PAY CALC Order adopted through rulemaking in fall 2026.

Beginning in 2027 and continuing annually thereafter, Colorado’s minimum wage will adjust automatically based on the year-over-year percentage change in the CPI-U for Denver-Aurora-Lakewood. There is no scheduled end date for these annual adjustments—they will continue indefinitely under the current constitutional provision unless modified by future ballot measure or constitutional amendment.

Minimum Wage for Tipped Employees

Tipped Employee Cash Wage

Colorado permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage. For 2026, the cash wage requirement for tipped employees is $12.14 per hour, with a maximum tip credit of $3.02 per hour, resulting in total minimum compensation of $15.16 per hour (cash wage plus tips).

The $3.02 tip credit amount is fixed in the Colorado Constitution and does not increase with annual minimum wage adjustments. As the minimum wage increases each year, the required cash wage for tipped employees increases proportionally while the tip credit remains constant at $3.02.

Who Qualifies as a Tipped Employee

Under Colorado law, a “tipped employee” is defined as an employee who customarily and regularly receives more than $30 per month in tips. The COMPS Order specifies that tip credits apply only to employees of businesses that “prepare and offer for sale food or beverages for consumption,” limiting tipped employee provisions primarily to the food service and beverage industries.

Qualifying occupations typically include:

  • Restaurant servers and bartenders
  • Food delivery drivers who receive tips
  • Coffee shop and cafe workers
  • Hotel food service workers
  • Catering service staff
  • Other food and beverage service employees who regularly receive tips

Employer Obligations for Tipped Workers

Employers who claim a tip credit must:

  1. Employ workers in qualifying establishments that prepare and offer food or beverages for sale
  2. Ensure total compensation (cash wage plus tips) equals or exceeds $15.16 per hour for all hours worked
  3. Pay the difference if an employee’s tips fail to bring total compensation to the full minimum wage
  4. Maintain accurate tip records documenting tips received and hours worked
  5. Not divert tips to managers, supervisors, or the employer except through lawful tip pooling arrangements
  6. Not deduct credit card processing fees from employee tips if claiming a tip credit

Colorado does not require employers to provide written notice to employees before claiming a tip credit, though employers must comply with all COMPS Order posting requirements which include information about tipped minimum wage rates.

Tip Pooling and Sharing

Colorado law permits voluntary tip pooling arrangements among employees who customarily and regularly receive tips. Under C.R.S. § 8-4-103(6), employers may require employees to share or allocate tips on a pre-established basis among employees, but several restrictions apply:

Prohibited participants in tip pools:

  • Managers and supervisors may not participate in or receive any portion of tip pools
  • Employers may not retain any portion of tips designated for employees
  • Employees who do not customarily and regularly receive tips cannot participate

Required conditions:

  • Tip pooling arrangements must be disclosed to employees
  • Distribution formulas must be pre-established and applied consistently
  • Tip sharing cannot reduce any employee’s compensation below the full minimum wage
  • If tip sharing reduces an employee’s tips below levels necessary to support the tip credit, the employer must pay additional cash wages

Credit card transaction fees: If an employer deducts credit card processing fees from tips paid by customers via credit card, the employer forfeits the right to claim a tip credit and must pay tipped employees the full $15.16 minimum wage in cash wages.

Local Minimum Wage Ordinances in Colorado

In addition to the state minimum wage, three local jurisdictions in Colorado have enacted their own minimum wage ordinances that exceed the state rate. Employers must comply with the highest applicable rate—federal, state, or local—for the jurisdiction where work is performed.

Colorado City and County Minimum Wages (2026)
City / County Standard Rate Tipped Rate Tip Credit Effective Date Official Source
Denver (City and County) $19.29/hour $16.27/hour $3.02 January 1, 2026 Denver Auditor
Edgewater (City) $18.17/hour $13.50/hour $4.67 January 1, 2026 Edgewater Ordinance
Boulder (City) $16.82/hour $13.80/hour $3.02 January 1, 2026 Boulder Ordinance 8664
Boulder County (Unincorporated) $16.82/hour $13.80/hour $3.02 January 1, 2026 Ordinance 2025-001

Last verified: February 4, 2026 via respective local government websites

Denver – City and County Minimum Wage

Denver enacted the state’s first local minimum wage in 2020 and maintains the highest minimum wage in Colorado. The Denver Minimum Wage Ordinance requires employers with workers performing four or more hours of work within Denver’s boundaries to pay $19.29 per hour for 2026, up from $18.81 in 2025.

Denver’s minimum wage adjusts annually on January 1 based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Denver-Aurora-Lakewood area. This differs from the state’s use of CPI-U. The Denver Auditor’s Office calculates and announces the new rate each summer.

Tipped employees: Denver permits a tip credit of $3.02, resulting in a tipped minimum wage of $16.27 per hour for food and beverage workers who regularly receive tips.

Scheduled increases: Denver’s 2027 minimum wage will be announced in summer 2026 following CPI-W calculation.

Enforcement: The Denver Auditor’s Office investigates wage complaints and may impose interest at 12% annually, damages up to 300% of unpaid wages, and penalties up to $25,000 per violation.

Edgewater – City Minimum Wage

Edgewater enacted a local minimum wage effective January 1, 2024, with scheduled annual increases through 2028. For 2026, Edgewater’s minimum wage is $18.17 per hour. Under House Bill 25-1208, Edgewater became the first Colorado jurisdiction to increase its tip credit above the constitutional $3.02 amount.

Tipped employees: Edgewater permits a tip credit of $4.67 per hour for 2026, resulting in a tipped minimum wage of $13.50 per hour for food and beverage workers. This represents a significant deviation from the standard state model and was enacted to provide economic relief to restaurant operators. The Edgewater City Council is studying the tip credit for potential adjustment in 2027.

Scheduled increases:

  • January 1, 2027: $19.99/hour
  • January 1, 2028: $21.99/hour
  • 2029 and after: Annual CPI adjustment or match to Denver’s rate (whichever is greater)

Coverage: Applies to employees performing four or more hours of work within Edgewater’s boundaries in any given week.

Source: Edgewater Minimum Wage Information

Boulder – City Minimum Wage

The City of Boulder enacted a local minimum wage effective January 1, 2025, following a regional study of minimum wage impacts. Boulder City Council adopted Ordinance 8664 establishing a phased increase schedule through 2027, with CPI adjustments beginning in 2028.

2026 rate: $16.82 per hour
Tipped employees: Boulder permits a tip credit of $3.02, resulting in a tipped minimum wage of $13.80 per hour

Scheduled increases:

  • January 1, 2027: $18.17/hour
  • January 1, 2028 and annually thereafter: CPI-U adjustment for Denver-Aurora-Lakewood

Youth workers: Unlike the state provision allowing 85% of minimum wage for non-emancipated minors, Boulder’s ordinance applies the full local minimum wage to all workers regardless of age.

Enforcement: The City of Boulder’s Office of Human Rights investigates wage complaints under the city’s Failure to Pay Wages Ordinance. The Colorado Department of Labor and Employment also has authority to investigate and enforce Boulder’s local minimum wage.

Boulder County – Unincorporated Areas

Boulder County enacted a local minimum wage for unincorporated areas effective January 1, 2024, with an original schedule reaching $25 per hour by 2030. Following public hearings in fall 2025, Boulder County Commissioners adopted Ordinance 2025-001 revising the schedule to align with the City of Boulder for 2026.

2026 rate: $16.82 per hour
Tipped employees: Tip credit of $3.02, resulting in tipped minimum wage of $13.80 per hour

Coverage: Applies only to unincorporated portions of Boulder County. Municipalities within Boulder County (except the City of Boulder) follow the state minimum wage unless they adopt their own ordinance.

Scheduled increases:

  • January 1, 2027 and annually thereafter: CPI-U adjustment for Denver-Aurora-Lakewood

Source: Boulder County Local Minimum Wage Information

How Local Minimum Wages Apply

Location of Work Controls: The applicable minimum wage is determined by where the employee physically performs work, not where the employer’s headquarters or main office is located. An employee working in Denver must be paid Denver’s minimum wage even if the employer is based outside Denver.

Employee Split Between Jurisdictions: When an employee works in multiple jurisdictions during a single workweek, employers must pay the minimum wage rate applicable for each location based on hours worked there. For example, an employee working 20 hours in Denver ($19.29) and 20 hours in Boulder ($16.82) must be paid the respective rates for time worked in each jurisdiction.

Remote Work Considerations: For employees working remotely, the minimum wage of the jurisdiction where the employee physically performs work generally applies. A remote employee working from home in Denver must be paid Denver’s minimum wage, even if the employer is located elsewhere in Colorado or in another state.

Four-Hour Threshold: Denver, Edgewater, and Boulder ordinances apply only to employees who perform four or more hours of work within the jurisdiction’s boundaries in a given week. Time spent merely traveling through a jurisdiction does not trigger coverage.

Enforcement: Local minimum wage ordinances are primarily enforced by the respective city or county agencies listed above. However, the Colorado Department of Labor and Employment also has authority to investigate and enforce local minimum wage violations under state law.

Who Is Covered and Who Is Exempt

Employees Covered by Colorado Minimum Wage

The Colorado Overtime and Minimum Pay Standards (COMPS) Order covers all private sector work performed in Colorado unless specifically exempted. Covered employees include:

  • Private sector workers: Full-time and part-time employees of private businesses, regardless of company size
  • Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for executive, administrative, or professional exemptions
  • Hourly employees: Workers compensated on an hourly basis in all industries
  • Temporary and seasonal workers: Employees hired for fixed periods or seasonal work
  • Minor employees: Workers under age 18, subject to 85% minimum wage for non-emancipated minors
  • Agricultural workers: Farm and ranch workers are covered at the full minimum wage, with special overtime provisions
  • Tipped employees: Food and beverage service workers who regularly receive tips

Exemptions from Minimum Wage Requirements

The following categories of employees are exempt from Colorado minimum wage requirements under the COMPS Order:

Executive, Administrative, and Professional Employees (EAP)
Employees performing bona fide executive, administrative, or professional duties may be exempt if they meet both salary and duties tests. For 2026, the minimum salary threshold for EAP exemption is approximately $1,057.50 per week ($55,000 annually), subject to annual adjustment. Specific duties tests apply as defined in COMPS Order Rule 2.2.

Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business premises are exempt from minimum wage requirements.

Agricultural Exemptions
While agricultural workers are covered by minimum wage requirements, specific exemptions apply to:

  • Range production of livestock (may be paid weekly salary equivalent)
  • Hand harvest laborers under specific conditions
  • Small farm operations meeting statutory criteria

Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, Colorado applies strict tests to determine independent contractor status based on degree of control and nature of work performed. Misclassification may result in penalties and back wages.

Highly Compensated Employees
Employees earning above $132,964 annually (2026 threshold) and regularly performing at least one duty of an exempt executive, administrative, or professional employee may qualify for exemption with reduced duties test requirements.

Other Specific Exemptions:

  • Certain resident workers (babysitters, property managers working on-site)
  • Bona fide volunteers for nonprofit organizations
  • Full-time students in work-study programs receiving academic credit
  • Employees of small businesses in ski resorts (with specific conditions)
  • Taxi cab drivers and certain transportation workers
  • 20% business owners actively managing the entity

Public sector employees (federal, state, and local government workers) are not covered by the COMPS Order, though they may be covered by separate civil service or government employment regulations.

Employer Obligations and Enforcement

Employer Compliance Requirements

Employers subject to Colorado minimum wage law must:

  1. Pay the applicable minimum wage for all hours worked, including the highest rate among federal, state, and local requirements
  2. Maintain accurate payroll records for at least three years, documenting:
    • Employee names, addresses, and Social Security numbers
    • Dates of birth for employees under 18
    • Hours worked each workday and workweek
    • Wage rates and total wages paid each pay period
    • Deductions from wages and net amounts paid
  3. Display required posters including the COMPS Order Poster in English and Spanish in conspicuous locations accessible to all employees
  4. Issue compliant wage statements each pay period showing gross wages, deductions, and net pay
  5. Not make unlawful deductions that would reduce pay below minimum wage
  6. Permit employees to retain all tips except through lawful tip pooling arrangements
  7. Pay overtime at 1.5 times the regular rate for hours over 40 per week or 12 per day (with limited exceptions)

Enforcement of Minimum Wage Law

The Colorado Department of Labor and Employment, Division of Labor Standards and Statistics enforces minimum wage requirements in Colorado. The Division:

  • Investigates wage complaints filed by employees
  • Conducts routine compliance inspections
  • Issues orders for payment of unpaid wages
  • Assesses civil penalties for violations
  • Refers cases for criminal prosecution when appropriate

Filing a Complaint: Employees who believe they have not been paid proper minimum wage may file a complaint with the Division of Labor Standards and Statistics through:

The Division must investigate complaints involving $7,500 or more per employee through June 30, 2026, and $13,000 or more per employee from July 1, 2026, through December 31, 2027. For smaller claims, employees may pursue private civil action.

Colorado law prohibits retaliation against employees who file wage complaints or cooperate with investigations. Retaliation may result in additional penalties and damages.

Penalties and Remedies

Employers who violate Colorado minimum wage law may be subject to:

Back Wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked. Claims may generally be pursued for violations occurring within two years, or three years for willful violations.

Liquidated Damages: Colorado law may authorize liquidated damages in cases where employers failed to pay required wages. The amount varies based on the nature of the violation and applicable statute.

Civil Penalties: The Division of Labor Standards and Statistics may assess civil penalties for minimum wage violations. Penalties vary based on violation severity and employer compliance history.

Interest: Unpaid wages may accrue interest from the date wages were due.

Criminal Penalties: Willful violations of wage payment requirements may constitute theft under C.R.S. § 18-4-401, punishable as a misdemeanor or felony depending on the amount involved.

Attorney Fees: Employees who prevail in minimum wage actions may recover reasonable attorney fees and costs of litigation under Colorado wage laws.

For local minimum wage violations in Denver, the Denver Auditor’s Office may impose interest at 12% annually, damages up to 300% of unpaid wages, and civil penalties up to $25,000 per violation.

Colorado Minimum Wage vs Federal Law

The Federal Minimum Wage Floor

The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.

The FLSA also permits employers to pay tipped employees a cash wage of $2.13 per hour, with up to $5.12 in tip credit, provided tips bring total compensation to at least $7.25 per hour.

When State Law Applies

Because Colorado’s minimum wage of $15.16 exceeds the federal minimum, most employees working in Colorado are entitled to the higher state rate. The federal minimum serves as a fallback only for the limited category of employers covered by federal but not state law.

Colorado’s constitutional provision establishing minimum wage requirements operates independently of the FLSA. The state requires all covered employers to pay at least $15.16 per hour regardless of FLSA coverage, effectively making the state rate the operative standard for nearly all Colorado employment.

Higher Applicable Rate Rule

The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. This rule ensures workers receive maximum protection under applicable law.

Practical Application:

  1. Identify all minimum wage rates that may apply (federal $7.25, state $15.16, local rates up to $19.29 in Denver)
  2. Determine which rates cover the specific employer and employee
  3. Pay the highest applicable rate

In Colorado, this often means comparing the federal minimum of $7.25, the state minimum of $15.16, and any applicable local minimum wage to determine which rate governs.

Regional Minimum Wage Context
Colorado’s minimum wage of $15.16 can be compared to surrounding states for regional context.
State 2026 Rate
Colorado $15.16
Wyoming $7.25 (federal)
Nebraska $13.50
Kansas $7.25 (federal)
Oklahoma $7.25 (federal)
New Mexico $12.00
Arizona $14.70
Utah $7.25 (federal)

Colorado’s rate significantly exceeds neighboring states, with only Arizona ($14.70) approaching Colorado’s level. Wyoming, Kansas, Oklahoma, and Utah adopt the federal minimum wage of $7.25, while New Mexico and Nebraska have established their own rates below Colorado’s. Within Colorado, Denver’s local minimum wage of $19.29 ranks among the highest municipal minimum wages nationwide.

Note: Rates shown are standard minimum wages and may not reflect local or industry-specific variations.

Minimum Wage Posting Requirements

Colorado law requires employers to display an official minimum wage notice in a conspicuous location accessible to all employees. The COMPS Order Poster includes current wage rates, overtime requirements, meal and rest break provisions, employee rights, and contact information for the Division of Labor Standards and Statistics.

Where to obtain posters:

  • Download from Colorado Department of Labor and Employment: English and Spanish versions available
  • Order printed copies: Contact the Division of Labor Standards and Statistics
  • Available languages: English and Spanish (Spanish poster required if Spanish-speaking employees work at the location)

Posting locations: The COMPS Order poster must be displayed in each workplace location where employees can readily see it, typically near time clocks, in break rooms, or at other prominent locations. Employers with multiple work sites must post at each location.

Local minimum wage posters: Employers in Denver, Edgewater, Boulder, or unincorporated Boulder County must also display applicable local minimum wage notices alongside the state poster:

Compliance: Failure to display required posters may result in citations and penalties from the Division of Labor Standards and Statistics or local enforcement agencies. Employers must update posters when minimum wage rates change each January 1.

Frequently Asked Questions: Minimum Wage in Colorado 2026

What is the minimum wage in Colorado in 2026?

The minimum wage in Colorado is $15.16 per hour as of January 1, 2026. Higher rates apply in Denver ($19.29/hour), Edgewater ($18.17/hour), Boulder ($16.82/hour), and unincorporated Boulder County ($16.82/hour). Employers must pay the highest rate applicable to where work is performed.

When is the next minimum wage increase in Colorado?

The next minimum wage increase in Colorado is scheduled for January 1, 2027. The exact rate will be calculated in fall 2026 based on the Consumer Price Index for Urban Consumers (CPI-U) for the Denver-Aurora-Lakewood area. Based on historical trends, the 2027 rate is projected to be approximately $15.71 per hour, though the actual amount will depend on CPI-U data.

Does Colorado allow tip credit?

Yes, Colorado permits employers to pay tipped employees a cash wage of $12.14 per hour, with up to $3.02 in tip credit, provided total compensation reaches $15.16 per hour. This provision applies only to employees of businesses that prepare and offer food or beverages for sale, and only for employees who regularly receive tips. Note that Edgewater permits a higher tip credit of $4.67 for 2026.

Are there different minimum wages in different cities in Colorado?

Yes, three jurisdictions in Colorado have enacted minimum wages higher than the state rate. Denver requires $19.29 per hour, Edgewater requires $18.17 per hour, and both the City of Boulder and unincorporated Boulder County require $16.82 per hour. Employers must pay the highest applicable rate for the location where work is performed.

Who is exempt from minimum wage in Colorado?

Common exemptions from Colorado minimum wage include executive, administrative, and professional employees meeting salary and duties tests (minimum $55,000 annually in 2026), outside sales employees, properly classified independent contractors, and certain agricultural workers under specific conditions. Most hourly workers, including part-time employees, are covered by minimum wage requirements.

What happens if an employer pays below minimum wage in Colorado?

Employers who pay below minimum wage face back wage liability for unpaid amounts, potential liquidated damages, civil penalties, interest on unpaid wages, and possible criminal prosecution for willful violations. Employees can file complaints with the Division of Labor Standards and Statistics to recover unpaid wages. Colorado law prohibits retaliation against workers who report violations.

Do small businesses have to pay minimum wage in Colorado?

Yes, all employers in Colorado must pay minimum wage regardless of size. Even businesses with one employee must comply with the $15.16 hourly rate. Colorado’s COMPS Order contains no small employer exemption. Federal minimum wage may still apply to very small employers not covered by state law, but the state rate is higher and therefore controls for most employment.

Is Colorado’s minimum wage higher than the federal minimum?

Yes, Colorado’s minimum wage of $15.16 is $7.91 higher than the federal minimum wage of $7.25. Employers in Colorado must pay the higher state rate. The federal rate has not increased since July 24, 2009, while Colorado’s rate adjusts annually for inflation.

How often does Colorado increase its minimum wage?

Colorado adjusts its minimum wage annually on January 1 based on the Consumer Price Index for Urban Consumers (CPI-U) for the Denver-Aurora-Lakewood area. The Division of Labor Standards and Statistics calculates the adjustment each summer and announces the new rate through fall rulemaking, typically in September or October. There is no scheduled end to these annual adjustments.

Can employers pay less than minimum wage during training?

No, Colorado does not authorize a training wage. Employers must pay at least $15.16 per hour from the first hour of employment. The only exception is for non-emancipated minor employees under age 18, who may be paid 85% of the minimum wage ($12.89 per hour in 2026). No separate training wage provisions exist.

How to file a minimum wage complaint in Colorado

Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Division of Labor Standards and Statistics. Filing methods include:

For local minimum wage violations:

Colorado law prohibits employer retaliation against workers who file wage complaints or participate in investigations. The Division investigates complaints and may recover unpaid wages on behalf of employees.

Do remote workers in Colorado get the Colorado minimum wage?

Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Colorado are typically entitled to Colorado’s minimum wage of $15.16, even if their employer is based in another state. If the remote worker is located in Denver, Boulder, or Edgewater, the applicable local minimum wage applies based on the employee’s work location.

Information Verification Log

All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.

Information Verification Log
Source Last Verified Full URL
Colorado Constitution – Article XVIII, Section 15 February 4, 2026 https://leg.colorado.gov/laws/colorado-constitution
Colorado Overtime and Minimum Pay Standards (COMPS) Order February 4, 2026 https://cdle.colorado.gov/dlss/labor-laws-rules-resources/labor-rules-proposed-and-adopted
Colorado Revised Statutes – Title 8 (Labor and Industry) February 4, 2026 https://leg.colorado.gov/laws/colorado-revised-statutes
House Bill 19-1210 (Local Government Minimum Wage) February 4, 2026 http://leg.colorado.gov/bills/hb19-1210
House Bill 25-1208 (Local Tip Credit Authority) February 4, 2026 https://content.leg.colorado.gov/.../2025a_1208_01.pdf
Colorado Department of Labor and Employment (CDLE) February 4, 2026 https://cdle.colorado.gov/dlss
Denver Minimum Wage Ordinance February 4, 2026 https://denvergov.org/.../Citywide-Minimum-Wage
Edgewater Minimum Wage Information February 4, 2026 https://www.edgewaterco.gov/doing-business/minimum-wage
Boulder Ordinance 8664 February 4, 2026 https://bouldercolorado.gov/local-minimum-wage
Boulder County Ordinance 2025-001 February 4, 2026 https://assets.bouldercounty.gov/.../Ordinance-2025-1-Amending-Local-Minimum-Wage.pdf
U.S. Department of Labor – Fair Labor Standards Act February 4, 2026 https://www.dol.gov/agencies/whd/minimum-wage

Others

California
Missouri
Wisconsin
Indiana
Arizona
Tennessee
Massachusetts
Georgia
North Carolina
New Jersey
Michigan
Virginia
Washington

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current