Minimum Wage Law Summaries
Colorado, Minimum Wage Law Summaries
Colorado's law relating to the minimum wage is codified in the Colorado Revised Statutes at Title 8, Article 6. Colorado also currently has a minimum wage order in effect-Minimum Wage Order No. 25, promulgated under the authority vested by Colorado Revised Statutes Title 8, Articles 1, 4, 6, and 12, supersedes all previous wage orders. The full text of the law is available beginning at Wages-Hours ¶6-41,001 .
Note: On November 7, 2006, Colorado voters approved Constitutional Amendment 42, raising the minimum wage effective January 1, 2007 (see details below under WHAT THE EMPLOYER MUST DO).
DEFINITIONS
For purposes of Minimum Wage Order No. 25, “employer” means every person, firm, partnership, association, corporation, receiver, or other officer of court in Colorado, and any agent or officer thereof, of the above-mentioned classes, employing any person in Colorado. “Employer” does not include state, federal and municipal governments or political subdivisions thereof, including: cities, counties, municipal corporations, quasi-municipal corporations, school districts and irrigation, reservoir or drainage conservation companies or special districts organized and existing under the laws of Colorado.
“Occupation” means every vocation, trade, pursuit, and industry (Sec. 8-6-103).
For purposes of Minimum Wage Order No. 25, “employee” means any person performing labor or services for the benefit of an employer in which the employer may command when, where, and how much labor or services will be performed. An individual primarily free from control and direction in the performance of the contracted labor or services, and who is customarily engaged in an independent trade, occupation, profession or business related to the service performed, is not an “employee.”
For purposes of Minimum Wage Order No. 25, “tipped employee” means any employee engaged in an occupation in which he or she customarily and regularly receives more than $30 a month in tips. Tips include amounts designated as a “tip” by credit card customers on their charge slips. Nothing herein contained shall prevent an employer covered hereby from requiring employees to share or allocate such tips or gratuities on a preestablished basis among other employees of said business who customarily and regularly receive tips. Employer-required sharing of tips with employees who do not customarily and regularly receive tips, such as management or food preparers, or deduction of credit card processing fees from tipped employees, shall nullify authorized allowable tip credits towards the minimum wage (see WHAT THE EMPLOYER MUST DO below).
COVERAGE
Minimum Wage Order No. 25 regulates wages, hours, working conditions and procedures for certain employers and employees for work performed within the boundaries of the state in the following industries: retail and service; food and beverage; commercial support service; and health and medical. Whenever employers are subjected to both federal and Colorado law, the law providing the greater protection or setting the higher standard shall apply.
WHAT THE EMPLOYER MUST DO
It is unlawful to employ workers in any occupation for wages that are inadequate to supply the necessary cost of living and to maintain the health of the workers (Sec. 8-6-104).
Effective January 1, 2009, Colorado's minimum wage is $7.28 per hour. The rate shall be adjusted annually for inflation, as measured by the Consumer Price Index used for Colorado. This minimum wage shall be paid to employees who receive the state or federal minimum wage (Amendment 42, approved November 7, 2006; Colorado Constitution, Art. XVIII, Sec. 15; Colorado Minimum Wage Fact Sheet , November 2007; Colorado Minimum Wage Fact Sheet , September 2008).
Minimum Wage Order No. 25.-Coverage.- The Colorado emergency minimum wage order regulates wages, hours, working conditions and procedures for certain employers and employees for work performed within the boundaries of the state in the following industries: retail and service; food and beverage; commercial support service; and health and medical.
Exemptions.- The following occupations or employees are exempt from the provisions of the minimum wage order: administrative, executive/supervisor, professional, outside sales employees, and elected officials and members of their staff. Other exemptions are: companions, casual babysitters, and domestic employees employed by households or family members to perform duties in private residences, property managers, interstate drivers, driver helpers, loaders or mechanics of motor carriers, taxicab drivers, and bona fide volunteers. Also exempt are: students employed by sororities, fraternities, college clubs, or dormitories, and students employed in a work experience study program and employees working in laundries of charitable institutions that pay no wages to workers and inmates, or patient workers who work in institutional laundries.
“Administrative employee” means a salaried individual who directly serves the executive, and regularly performs duties important to the decisionmaking process of the executive. Said employee regularly exercises independent judgment and discretion in matters of significance and their primary duty is nonmanual in nature and directly related to management policies or general business operations.
“Executive employee” or “supervisor” means a salaried employee earning in excess of the equivalent of the minimum wage for all hours worked in a workweek. Said employee must supervise the work of at least two full-time employees and have the authority to hire and fire, or to effectively recommend such action. The executive or supervisor must spend a minimum of 50% of the workweek in duties directly related to supervision.
“Professional employee” means a salaried individual employed in a field of endeavor who has knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study. The professional employee must be employed in the field in which they are trained to be considered a professional employee. Note: The requirement that a professional employee must be paid on a salary basis does not apply to doctors, lawyers, teachers and employees in highly technical computer occupations earning at least $27.63 per hour.
“Outside salesperson” means any person employed primarily away from the employer's place of business or enterprise for the purpose of making sales or obtaining orders or contracts for any commodities, articles, goods, real estate, wares, merchandise or services. Such outside sales employee must spend a minimum of 80% of the workweek in activities directly related to their own outside sales.
Minimum wage.- All adult employees and emancipated minors, employed in any of the industries covered herein, whether employed on an hourly, piecework, commission, time, task or other basis, must be paid not less than $7.28 per hour, effective January 1, 2009, less any applicable lawful credits for all regular hours worked.
An employee whose physical disability has been certified by the Director of the Division of Labor to significantly impair the employee's ability to perform the duties involved in the employment, and unemancipated minors under 18, may be paid 15% below the current minimum wage, less any applicable lawful credits, for all hours worked.
Allowable credits.- The only allowable credits that may be taken by an employer toward the minimum wage are as follows:
Lodging: the reasonable cost or fair market value of lodging not to exceed $25 per week furnished by the employer and used by the employee may be considered part of the minimum wage when furnished.
Meals: the reasonable cost or fair market value of meals provided to the employee may be used as part of the minimum hourly wage. No profits to the employer may be included in the reasonable cost or fair market value of such meals furnished. The meal must be consumed before deductions are permitted.
Tips: employers of “tipped employees” must pay a cash wage of at least $4.26 per hour if they claim a tip credit against their minimum hourly wage obligation. If an employee's tips combined with the employer's cash wage of at least $4.26 per hour do not equal the minimum hourly wage, the employer must make up the difference in cash wages.
Presents, tips or gratuities.- It shall be unlawful to deny presents, tips or gratuities intended for employees in violation of the Colorado Wage Act.
Uniforms.- Where the wearing of a particular uniform or special apparel is a condition of employment, the employer must pay the cost of purchases, maintenance, and cleaning of the uniforms or special apparel. If the uniform furnished by the employer is plain and washable and does not need or require special care such as ironing, dry cleaning, pressing, etc., the employer need not maintain or pay for cleaning.
Clothing accepted as ordinary street wear and the ordinary white or any light-colored, plain and washable uniform need not be furnished by the employer unless a special color, make, pattern, logo or material is required. An employer may require a reasonable deposit (up to one-half of actual cost) as security for the return of the uniform furnished to employees upon issuance of a receipt to the employee for such deposit. The entire deposit must be returned to the employee when the uniform is returned. The cost of ordinary wear and tear of a uniform or special apparel may not be deducted from the employee's wages or deposit.
Legal deductions.- No employer may make any deductions from employees' wages or compensation in violation of the Colorado Wage Act.
Recordkeeping.- Every employer must keep at the place of employment or at the employer's principal place of business in Colorado a true and accurate record for each employee that contains the following information:
the employee's name, address, social security number, occupation and date of hire;
the employee's date of birth, if the employee is under 18 years of age;
a daily record of all hours worked;
a record of allowable credits and declared tips; and
the employee's regular rates of pay, gross wages earned, withholdings made and net amounts paid each pay period.
An itemized earnings statement of this information must be provided to each employee each pay period. Such records must be kept on file for at least two years from the date of entry.
Posting.- Every employer subject to the wage order must display a wage order poster in an area frequented by employees where it may be easily read during the workday. If the work site or other conditions make this unpractical, every employer must keep a copy of the wage order and make it available to every employee upon request.
Reprisals.- Employers shall not threaten, coerce, or discharge any employee because of participation in any investigation or hearing relating to the minimum wage act. Violators may be subject to a fine of not less than $200, up to $1,000 for each violation.
Denver living wage.- Every person employed by any contractor or subcontractor to the city of Denver, pursuant to a direct service contract in excess of $2,000 with the city, engaged in the work of a parking lot attendant, security guard, or child care worker at any public building or public parking facility owned by the city, or clerical support worker, must be paid not less than a “living wage,” which is defined as the amount set forth as the poverty guideline for the 48 contiguous states and the District of Columbia for a family unit of four, divided by the number 2080. Effective February 1, 2009, the current living wage rate is $10.60 per hour (Revised Municipal Code, Div. 3.5, Sec. 20-80, as added by Ordinance No. 126, passed February 14, 2000).
Subminimum wages.- An employer may pay a rate of 15 percent lower than the minimum wage to persons certified by the director to be less efficient due to a physical disability (Sec. 8-6-108.5).
The minimum wage for minors may be 15 percent below the minimum wage for other workers; except that the full minimum wage must be paid to any emancipated minor. An emancipated minor is an individual less than 18 years of age who is solely or primarily responsibility for his or her own support, is married and living away from parents or guardian [and/or]; is able to show that his or her well-being is substantially dependent upon being gainfully employed (Sec. 8-6-108.5).
Compliance duties.- It is the duty of every employer, whether a person, firm, or corporation, to furnish to the Director of the Division of Labor, Department of Labor, upon request, any reports or information that the director requires to carry out the purposes of the minimum wage law. The reports and information must be verified by the oath of the person, or a member of the firm or the president, secretary, or manager of the corporation, furnishing the records, if and when requested by the director (Sec. 8-6-107).
Local governments.- No unit of local government, whether by acting through its governing body or an initiative, a referendum, or any other process, may enact any jurisdiction-wide laws with respect to minimum wages. A unit of local government, however, may set minimum wages paid to its own employees. Any local government regulation or law pertaining to minimum wages in effect as of January 1, 1999, will remain in full force and effect until such law is repealed by the local government entity that enacted the law (Sec. 8-6-101, as amended by Ch. 99 (S. 14), L. 1999, effective April 14, 1999).
NOTICE
Every employer in an industry regulated by wage order must display a copy of the order in a conspicuous place in such employer's establishment. Where posting is impractical, the employer must keep a copy of the order and make it available to every employee upon request (Sec. 8-6-111, as amended by H. 1455, L. 2000, effective July 1, 2000).
ENFORCEMENT
The Director of the Division of Labor, Department of Labor and Employment, enforces the minimum wage law (Sec. 8-6-105).
The director determines the minimum wages sufficient for living wages for persons of ordinary ability and the minimum wages sufficient for living wages for learners and apprentices. In all such determinations, the director shall be bound by the provisions of this article and of Sec. 15 of Art. XVIII of the State Constitution; except that, if a higher minimum wage rate is established by applicable federal law or rules, the director shall be bound by such federal law or rules (Sec. 8-6-106, as amended by Ch. 16 (H. 1001), L. 2007).
Investigative authority.- The Director of the Division of Labor enforces the minimum wage law by investigating the conditions of labor of employees in an occupation when there is reason to believe the conditions are detrimental to the employees' health or morals or that the wages paid to a substantial number of employees are inadequate to supply the necessary cost of living and to maintain such employees in health. At the request of not less than 25 persons engaged in any occupation, the director must investigate conditions at any time (Sec. 8-6-105).
The director or any authorized representative must be allowed free access to an employer's place of business to make any investigation authorized by law (Sec. 8-6-107).
Complaints.- Any person may register a complaint with the division that the wages paid to an employee for whom a rate has been established are less than that rate, and the director must investigate the matter and take all proceedings necessary to enforce the payment of the minimum wage rate (Sec. 8-6-119).
A complaint alleging a violation of a minimum wage order must be registered with the division in writing within two years of the alleged violation.
Criminal informations.- The director must investigate and report to the proper prosecuting officials whether employers in each occupation investigated are obeying his or her decrees. The director or employees of the division may cause informations to be filed with and prosecutions to be instituted by the proper prosecuting officials for any violation of the provisions of the minimum wage law (Sec. 8-6-115).
Court actions.- An employee receiving less than the legal minimum wage applicable to the employee is entitled to file a civil action to recover the unpaid balance of the full amount of the minimum wage, together with costs of suit, notwithstanding any agreement to work for a lesser wage (Sec. 8-6-118).
Minimum Wage Order No. 25.-Administration and interpretation.- The Division of Labor shall have jurisdiction over all questions of fact arising with respect to the administration and interpretation of this order.
Filing of complaints.- Any person may register with the Division of Labor in the Colorado Department of Labor and Employment, a written complaint that alleges a violation of the order within two years of said violation(s).
Investigations.- The Director of the Division of Labor or designated agent shall investigate and take all proceedings necessary to enforce the payment of the minimum wage rate and other alleged violations of this wage order.
Enforcement.- The Director of the Division of Labor has the power, in person or through any authorized representative, to inspect, examine and make excerpts from any book, reports, contracts, payrolls, documents, papers, and other records of any employer that in any way pertain to the question of wages, and to require from any such employer full and true statement of the wages paid.
Recovery of wages.- An employee paid less than the legal minimum wage is entitled to recover in a civil action the unpaid balance of the full amount of such minimum wage, together with costs of the suit.
WHO TO CONTACT
Contact the Department of Labor and Employment at 633 17th Street, Denver, CO 80202-3660. Telephone: (303) 318-8000.
RECORDKEEPING
Every employer must keep a register of the names, ages, dates of employment, and residence addresses of all employees (Sec. 8-6-107).
Recordkeeping requirements for employers subject to a wage order are listed above.
POSTING
Every employer in an industry regulated by wage order must keep a copy of the order posted in a conspicuous place in such employer's establishment. Where posting is impractical, the employer must keep a copy of the order and make it available to every employee upon request (Sec. 8-6-111, as amended by H. 1455, L. 2000, effective July 1, 2000).
PENALTIES
Wage violations.- Every employer or other person that, individually or as an officer, agent, or employee of a corporation or other person, pays any employee a wage less than the minimum is guilty of a misdemeanor and, upon conviction, will be punished by a fine of not less than $100 nor more than $500, or by imprisonment in the county jail for not less than 30 days nor more than one year, or by both fine and imprisonment (Sec. 8-6-116).
Discrimination.- Any employer that discharges or threatens to discharge, or in any other way discriminates against an employee because the employee serves on a wage board, or is active in its formation, or has testified or is about to testify, or because the employer believes that the employee may testify in any investigation or proceeding relative to enforcement of the minimum wage law is guilty of a misdemeanor and, upon conviction, will be punished by a fine of not less than $200 nor more than $1,000 for each violation (Sec. 8-6-115).
Minimum Wage Order No. 25.- Any employer or other person who individually or as an officer, agent or employee of a corporation or other person, pays or causes to be paid an employee covered by this wage order less than the minimum wage, is guilty of a misdemeanor. Conviction thereof will subject the offender to a fine of not less than $100, nor more than $500, or by imprisonment in the county jail for not less than 30 days, nor more than one year, or both such fine and imprisonment.