As many employers ring in the new year there are significant changes that in overall payroll costs with minimum wage laws. Colorado minimum wage was increased to $10.20 an hour for regular employees and $7.18 for tipped employees. With Amendment 70 the minimum wage will reach $12.00 per hour and $8.98 for tipped employees by 2020.
Minimum Wage isn’t as simple as all employees must be paid $10.20 an hour so as an employer how are you to keep up with these changes?
1. Research the labor laws and ensure that you are compliant.
2. Hire a company to do this heavy lifting and research for you.
So let’s talk about exceptions to minimum wage:
1. 25.00/week for housing can be applied toward the minimum wage if paid by the employer.
2. Non emancipated minors under 18 can be paid at a lower rate of $8.67/hour
3. Employees with physical disabilities and certified by the director can be paid $8.67 per hour. It is important that their disability is identified by the state.
What are your thoughts on the minimum wage changes? How are you approaching the growing payroll expense for your business?
Contact us today for a payroll analysis to see if there is a way to reduce the overhead costs of payroll for your business.
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Minimum Wage Changes Timeline
Effective Date Minimum Wage Tipped Employee Minimum Wage
January 1 2018 $10.20 $7.18
January 1 2019 $11.10 $8.08
January 1 2020 $12.00 $8.98
