The Colorado Department of Labor and Employment (CDLE) recently released the 2023 Publication and Yearly Calculation of Adjusted Labor Compensation Order (2023 PAY CALC Order). The 2023 PAY CALC Order has increased the compensation thresholds applicable to a variety of Colorado wage-and-hour and workplace requirements.
Colorado employers are required to meet certain pay levels, such as the minimum wage threshold. To assist employers in determining pay levels, the CDLE provides a yearly PAY CALC order that lists the various pay levels required, depending on the circumstances. For example, the 2023 PAY CALC Order provides Colorado’s general minimum wage rate, salary threshold for certain exempt employees, and minimum wage rate for agricultural workers.
Accordingly, employers that rely on certain pay thresholds may want to review their current operations and confirm that they meet the recently updated pay levels found within the 2023 PAY CALC Order. Three common pay levels are addressed below to demonstrate the recent changes and the impact those changes will have.
Minimum Wage
Colorado’s 2023 minimum wage rate is $13.65 per hour. This is a $1.09 increase in the hourly minimum wage rate from 2022. For tipped employees, the minimum wage rate is $10.63 per hour to the extent that adding tips raises total pay to the full minimum wage. This is also a $1.09 increase from 2022.
For employers that operate in Denver, the new minimum wage rate is $17.29 per hour. This is a $1.42...
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