Recently, Governor Polis and the Department of Labor and Employment (CDLE) Division of Labor Standards and Statistics (DLSS) announced an increase to Colorado’s minimum wage, which is currently $12.56 per hour for 2022, and will increase to $13.65 per hour in 2023, an 8.68% increase. Annually adjusting the minimum wage for inflation is a voter-approved mandate in the Colorado Constitution. The new minimum wage will take effect on January 1, 2023.
“We are building a strong economy that works for all Coloradans,” said Gov. Polis. “This new minimum wage of $13.65 builds upon our work to save Coloradans money, reduce the cost of everyday items, and put money back into the pockets of hardworking Coloradans.”
Gov. Polis signed a law allowing local governments to set a higher minimum wage than the state standard. The Polis Administration continues to take action to save Coloradans money, including sending tax rebates of $750 to individuals and $1500 to joint filers, cutting the cost of a driver’s license and vehicle registration fees, and reducing the cost of the state parks pass to $29.
The minimum wage adjustments are based on the Consumer Price Index (CPI) in the Denver-Aurora-Lakewood Metropolitan Statistical Area, which is calculated and issued by the federal Bureau of Labor Statistics.
DLSS issues minimum wage adjustments as a part of its annual wage law rulemaking process and pursuant to its mandate under the Colorado Constitution. Providing advance notice helps employers and employees plan their finances. The new minimum wage will take effect on January 1, 2023.