Colorado Minimum Wage 2026

Small business owners and Colorado employees should understand the state’s 2025 minimum wage rules. Staying compliant with the Colorado minimum wages is required, but knowing about upcoming rate changes can also support better planning. This guide outlines the current rates, local variations, overtime requirements, and other key details for the year and beyond.

What Is the Current Minimum Wage in Colorado?

Colorado’s constitutional minimum wage is $14.81 per hour as of January 1, 2025. This is well above the federal minimum of $7.25, so covered employees must be paid at least $14.81. This rate is indexed to inflation each year; under Colorado law, the prior year’s wage is adjusted by the Consumer Price Index (CPI) to set the new rate.)

Employers must pay overtime (1.5× regular pay) when employees exceed 40 hours in a week or 12 hours in a workday, or 12 consecutive hours, regardless of the day’s start/end.

Overtime Pay 2025

Colorado law mandates time-and-a-half for all hours beyond any of these thresholds. For example, a worker at minimum wage earns $14.81×1.5 = $22.22 per hour for overtime. Remember, averaging hours over multiple weeks is not allowed; each week and day is considered separately.

Tipped Employees 2025

Colorado’s tipped minimum wage is $11.79 per hour. Employers may take a tip credit of up to $3.02 (the difference between $14.81 and $11.79) toward meeting the state minimum. A tipped worker’s total hourly earnings (wage + tips) must equal at least $14.81; if tips fall short, the employer must make up the difference. (Colorado defines “tipped” employees as those who customarily earn more than $30 per month in tips.) Importantly, employers cannot keep employees’ tips, but they may require valid tip pooling among staff.

If an employer operates a tip pool, Colorado law requires posting a written notice (for example, on menus or receipts) that “employees share tips” (the 2019 law deleted the old language about tips belonging to the employer). Any mandatory tip pool that includes non-tipped staff also nullifies the tip credit (in that case, all participants must be paid the full $14.81).

Variations in Minimum Wage Across Colorado Locations

Several Colorado localities have higher rates:

• Denver (City & County of Denver): $18.81 per hour for 2025, with a tipped minimum of $15.79. (This is automatically adjusted by CPI each year; it will rise to $19.29 on Jan. 1, 2026.)
• City of Edgewater: $16.52 per hour in 2025 (tipped $13.50). Edgewater’s wage is scheduled to rise to $18.17 by Jan. 1, 2026 (and follows Denver’s increases thereafter).
• Unincorporated Boulder County: $16.57 per hour in 2025 (tipped $13.55). Boulder County will increase its rate to $17.99 on Jan. 1, 2026.
• City of Boulder: $15.57 per hour for 2025 (tipped $12.55). The City of Boulder has its schedule: $16.82 on Jan. 1, 2026, and $18.17 on Jan. 1, 2027.

These local wages must also be posted or paid when higher than the state rate. (Other Colorado cities/counties have their schedules, all rising annually with inflation.)

The History of Minimum Wage Rates in Colorado

Colorado’s minimum wage has steadily risen over time. Milestones include: the first state wage law in 1935 ($0.35/hour), gradual increases through the 20th century (e.g. $2.30 in 1979, $6.08 in 1999). Significant recent changes include Amendment 70 (2016), which raised the wage to $12 by 2020, and thereafter tied increases to the CPI.

Here’s the table showing the annual minimum wage rates in Colorado in the last 10+ years:

Year	Minimum Wage
2014	$8.00
2015	$8.23
2016	$8.31
2017	$9.30
2018	$10.20
2019	$11.10
2020	$12.00
2021	$12.32
2022	$12.56
2023	$13.65
2024	$14.42
2025	$14.81

These reflect annual CPI-based adjustments. Under current law, the wage will increase again on Jan. 1, 2026, by the latest CPI (projected to be about $15.15).

Required Labor Law Postings

Colorado law requires employers to display certain labor law posters in the workplace. At a minimum, covered employers must post the official COMPS (Overtime & Minimum Pay Standards) Order poster each year, which lists the current minimum wage, overtime rules, etc. This poster (published by the Colorado Dept. of Labor and Employment) must be placed “in an area frequented by employees where it may be easily read.” Suppose posting is impractical (for example, sole employees working at home). In that case, the employer must instead give each employee a copy of the COMPS Order or poster within their first month of employment.

Failure to do so can void certain employer exemptions under the wage law. In addition, Colorado (and federal) law requires other posters, such as those about workers’ compensation, unemployment insurance (Colorado Employment Security Act), payday notice, anti-discrimination rights, paid leave (FAMLI), and occupational safety. Employers should obtain the up-to-date set of Colorado and federal posters and display them prominently. The COMPS poster is updated every January to reflect the new minimum wage and any regulatory changes.

Overtime Regulations in Colorado

Unless exempt, Colorado employees receive overtime pay at 1.5× their regular rate for additional hours worked beyond certain thresholds. Specifically, overtime applies when an employee works over 40 hours in a workweek, or over 12 hours in any single day, or over 12 consecutive hours in a row. The greatest-of-these penalties rule means whichever of those calculations yields the highest pay must be used.

For example, an employee who works 60 hours Monday–Friday and 0 hours on Saturday is entitled to 20 hours of overtime in that first week.

Colorado law does not allow averaging hours over multiple weeks, nor comp time instead of overtime. Certain specific industries and job categories are exempt or use different thresholds (e.g. ski instructors, some seasonal camps, most federal-exempt drivers under the Motor Carrier Act). But for the vast majority of workers, overtime rules apply as above. (Colorado’s COMPS Order also codifies daily overtime rules and “over 12 consecutive hours” overtime, which are more generous to workers than federal law.)

What Are the Exemptions for Minimum Wage in Colorado?

Colorado’s COMPS Order largely mirrors federal exemptions but with some differences. Key exemptions (subject to meeting criteria) include:

• Executive/Managerial: Salaried supervisors/executives who manage at least two full-time employees and have broad decision-making authority. These employees must earn at least $56,485 annually ($1,086.25/week) in 2025 (with that threshold indexed by CPI in future years).
• Administrative: Salaried administrative workers whose duties involve office or non-manual work related to management or general business operations, with discretion, and earning a salary above.
• Professional: Salaried professionals whose primary duty is intellectual or creative work requiring advanced knowledge (e.g., engineers, computer specialists, but notably not including doctors, lawyers, or teachers for the salary test). They must also meet the salary threshold.
• Outside Sales: Commissioned salespersons who regularly work off-site (outside the employer’s place of business) for most of their time.
• Miscellaneous: A 20% owner of a business; the highest-paid employee of certain nonprofits; motor-carrier drivers who cross state lines under federal rules; and others.

For any exempt category above, the employee must be paid on a salary basis and earn at least the stated salary minimum (indexed by CPI each year). Importantly, the salary requirement cannot be paid by tips or commission – the exempt employee must receive the full salary regardless of hours.

Youth and Student Wages

Federal law (FLSA) still permits a youth training wage of $4.25 per hour for the first 90 calendar days of employment for workers under 20. In practice, Colorado employers may pay new teen hires as little as $4.25 during that training period. However, non‑emancipated minors (under 18) working beyond that period must earn at least 85% of the full wage, which is $12.59 in 2025.

Some Colorado employers pay high school or college student workers up to 20 hours/week at 85% of the state’s minimum wage. Any minor or student beyond their training period who is paid less than full minimum wage must still receive at least this 85% rate.

Other Exceptions

Colorado law also includes limited sub-minimum rules (all now repealed). It has separate rules for agricultural workers (allowing a fixed weekly salary for range workers) and disability employment (Colorado eliminated sub-minimum “section 14(c)” certificates in 2023).

There are also a few narrowly defined industries that may use different overtime calculations (e.g. camp staff, motion picture work). Employers should consult the COMPS Order or CDLE guidance for those exceptional cases.

Preparing for 2025 Increases (and Beyond)

Small business owners should take proactive steps now to manage the higher wage costs:

• Revisit Budgets: Plan payroll for the $14.81 rate (and higher local rates) in 2025. This may involve raising prices, streamlining expenses, or finding efficiencies to offset increased labor costs.
• Optimize Staffing: Examine whether schedules, shift lengths, or staffing levels need adjusting. In some cases, businesses reduce overtime by hiring additional part-time help or reassigning work. (Be cautious: understaffing can hurt productivity and employee morale.)
• Invest in Efficiency: Explore automation or software solutions (scheduling, payroll, inventory) to reduce administrative overhead. Even modest tech improvements (time-clock systems, ordering kiosks) can help manage higher wage bills.
• Review Labor Rules: Stay current on Colorado labor laws. For example, the minimum salary thresholds for white-collar exemptions will be CPI‑indexed annually after 2024. Check for any new regulations (such as the recent youth employment amendments or local ordinances). Consult a labor attorney or accountant if unsure.
• Communicate with Employees: Openly discuss any changes (hours, duties, or tip policies) required by higher wages. Explain how the changes help the business sustain pay increases. Encourage staff to stay efficient and work smart to justify the investment in higher wages.
• Monitor Local Laws: If you operate in multiple jurisdictions, note each locality’s rate. For instance, in 2025, Denver is $18.81, Edgewater $16.52, Boulder (city) $15.57, etc. Employers should track when these local rates change. (For example, by January 2026, Denver’s rate reaches $19.29; City of Boulder hits $16.82; unincorporated Boulder Co $17.99; Edgewater $18.17.)

By planning, adjusting pricing, optimizing schedules, and communicating with staff, businesses can better absorb the 2025 wage hikes. Colorado’s wage landscape is indexed to inflation and locally variable, so ongoing attention is needed. Employers who prepare early will mitigate surprises and stay compliant as the minimum wage climbs with the cost of living.

Conclusion

Understanding Colorado’s 2025 minimum wage rules is critical for both employers and employees. The statewide rate, local variations, tipped employee provisions, and overtime rules all carry specific compliance obligations. Because the rates adjust annually with inflation and can differ by location, ongoing monitoring is necessary.

Businesses that review their budgets, update workplace postings, and communicate clearly with staff will be in a stronger position to meet legal requirements while managing the financial impact of wage increases.

Frequently Asked Questions