Colorado Minimum Wage: Rate, Tipped Wage, and Local Rules

Colorado's minimum wage is set in the state constitution and is adjusted every year for inflation, which keeps it well above the federal floor of $7.25 per hour under the Fair Labor Standards Act (FLSA). As of 2025 the statewide minimum wage was $14.81 per hour, and the rate rises again on January 1, 2026 based on the prior year's increase in the Consumer Price Index. Because the figure changes annually, you should confirm the exact current dollar amount with the Colorado Department of Labor and Employment (CDLE) before relying on it. For tipped workers, Colorado allows a tip credit of up to $3.02 per hour, meaning a tipped employee's direct cash wage can be $3.02 below the full minimum wage as long as tips make up the difference.

Colorado's minimum wage versus the federal rate

The federal minimum wage under the FLSA has been $7.25 per hour since 2009 and has not changed since. Colorado's rate is roughly double that. This matters because when a state minimum wage is higher than the federal minimum, the higher state rate controls. Colorado employers cannot pay the federal $7.25; they must pay at least the Colorado rate (or a higher local rate where one applies).

Colorado's wage floor comes from Amendment 70, a 2016 voter-approved constitutional amendment. It set the minimum wage at $12.00 per hour effective January 1, 2020, and then required annual adjustments for cost of living based on the Consumer Price Index for the Denver-Aurora-Lakewood area. That indexing is why the rate has climbed each year since 2020 without any new legislation. The annual adjustment is announced by the CDLE in the fall and takes effect the following January 1.

How the indexing works

Each year, the CDLE calculates the change in the cost of living and applies it to the prior year's minimum wage. The rate generally goes up; the constitution provides that it adjusts based on inflation. Recent statewide rates illustrate the trend:

• 2023: $13.65 per hour
• 2024: $14.42 per hour
• 2025: $14.81 per hour
• 2026: adjusted upward again for inflation effective January 1, 2026 (confirm the exact figure with CDLE)

Because the number resets every January, treat any rate you read online as a snapshot. The authoritative current figure is published each year in the CDLE's Colorado Overtime and Minimum Pay Standards (COMPS) Order and the accompanying minimum wage poster.

Tipped employees and the tip credit

Colorado permits a tip credit, but it is much smaller than what federal law allows. Under the FLSA, an employer can pay a tipped worker as little as $2.13 per hour in direct cash wages. Colorado does not allow that. Instead, Colorado caps the tip credit at $3.02 per hour. That means an employer must pay a tipped employee a cash wage of at least the full state minimum wage minus $3.02.

So if the statewide minimum wage is $14.81, the minimum cash wage for a tipped worker is $11.79 per hour ($14.81 minus $3.02). When the minimum wage rises in 2026, the tipped cash wage rises with it, because the $3.02 credit is subtracted from the new, higher figure.

Several rules protect tipped workers:

• Tips plus cash wage must equal the full minimum. If an employee's tips plus the reduced cash wage do not reach the full minimum wage for the pay period, the employer must make up the shortfall.
• To take the credit, the worker must regularly receive more than $30 a month in tips.
• Tips belong to the employee. Employers cannot keep tips. Valid tip pools are allowed only among employees who customarily receive tips, and managers and supervisors generally cannot share in them.
• In a local jurisdiction with a higher minimum wage, the same $3.02 credit applies against that higher local rate.

Local minimum wages in Colorado

Colorado law lets local governments set their own minimum wage above the state rate, and several have done so. Where a city or county minimum is higher than the state figure, employers in that jurisdiction must pay the local rate. The most significant local rates include:

• Denver: The City and County of Denver has its own minimum wage that is meaningfully higher than the statewide rate and is also adjusted each year for inflation. Denver was the first Colorado city to adopt a local minimum wage.
• Edgewater: This Jefferson County city adopted a local minimum wage above the state floor, also indexed annually.
• Unincorporated Boulder County: Boulder County set a higher minimum wage for unincorporated areas, phasing toward a target rate with annual increases.
• Boulder (city): The City of Boulder has adopted its own local minimum wage as well.

Because these local rates change and new jurisdictions can adopt their own, confirm the rate for the specific city or county where the work is performed. Each local government and the CDLE publish current local figures.

Who is covered and key exceptions

Colorado's minimum wage applies broadly to employees in the state, often more broadly than federal law because the state's COMPS Order covers many workers the FLSA exempts. Some categories have special rules:

• Certain youth and trainees. Limited sub-minimum or training-related provisions can apply in narrow circumstances; most workers are entitled to the full rate.
• Specific exempt occupations. Bona fide executive, administrative, and professional employees who meet salary and duties tests may be exempt from minimum wage and overtime rules, but Colorado's salary thresholds differ from and often exceed the federal levels.
• Agricultural and other specialized work. Some sectors have tailored rules under the COMPS Order.

Colorado also has its own overtime rules that are more generous than federal law in some respects. In addition to the federal standard of time-and-a-half over 40 hours in a workweek, Colorado requires overtime pay for hours over 12 in a workday and for the 12th consecutive hour worked, whichever results in more pay.

How to enforce your rights

If you were paid less than the Colorado minimum wage or the proper tipped cash wage, you have options:

• File a wage complaint with the CDLE. The Division of Labor Standards and Statistics within the Colorado Department of Labor and Employment investigates minimum wage, tip, and overtime violations and can order back pay.
• Keep records. Save pay stubs, schedules, and tip records. Note the hours you worked and what you were paid.
• Act within the deadline. Wage claims are subject to time limits, so do not wait. Penalties and recovery can be larger if you act promptly and follow the required demand process.
• Consider a private lawsuit. Colorado law allows employees to recover unpaid wages, and in many cases additional penalties and attorney fees.

Where to confirm the current rate

The official source for Colorado's minimum wage, the tipped cash wage, and the tip credit is the Colorado Department of Labor and Employment (CDLE), specifically its Division of Labor Standards and Statistics. The CDLE publishes the annual COMPS Order, the required minimum wage poster, and guidance each fall announcing the rate for the coming year. For local rates, check the official website of the relevant city or county (such as Denver, Edgewater, Boulder, or Boulder County). Because Colorado indexes its minimum wage to inflation, always verify the current figure with the CDLE rather than relying on a number that may be out of date.

Official Colorado Sources

This page is based on Colorado employment law. Rules and figures change — verify the current details directly with the official Colorado sources below. This is general legal information, not legal advice.

• Colorado Department of Labor and Employment (CDLE) — official Colorado agency.
• Worker Complaints & Employer Responses (Labor Standards Complaint Form) - Division of Labor Standards and Statistics
• Colorado Revised Statutes, Title 8 - Labor and Industry (includes the Colorado Wage Act, C.R.S. 8-4-101 et seq.)

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Colorado state law.