The New Year is upon us, here at MB Law, we would like to provide you with information to bring awareness of some of the regulatory changes that 2020 brings to Denver and Colorado.
Regulatory changes included:
- Minimum wage increases for the State of Colorado and Denver workers;
- Changes to the Overtime threshold;
- New penalty for wage theft;
- A look ahead to 2021: Equal Pay for Equal Work Act.
Minimum wage increases:
Colorado’s “Minimum Wage Order #35” has been replaced by the “COMPS” Order #36 (Colorado Overtime & Minimum Pay Standards Order). This change reflects the Colorado Department of Labor and Employment’s expansion of the coverage of the order. To review all of the changes and details, click here.
Effective January 1, 2020, minimum wage has increased in Colorado and the City and County of Denver.
Colorado’s statewide minimum wage increased from $11.10 to $12/hour and from $8.08 to $8.98/hour for tipped employees. Denver’s minimum wage increase requires employers to pay covered employees a minimum wage of $12.85/hour. Denver’s minimum wage will increase year over year from here, here is a look at what is to come for Denver:
Future Denver minimum wage:
Effective January 1, 2021: a minimum wage of $14.77/hour;
Effective January 1, 2022: a minimum wage of $15.87/hour;
Effective January 1, 2023: minimum wage adjusted for inflation and every January 1 after 2023.
(Outside of California, Denver is the first city to pass a local minimum wage ordinance in more than three years.)
Changes to the Overtime threshold:
Effective January 1, 2020, Colorado employers must now pay overtime to any employee who works more than 12 hours a day or more than 40 hours a week, earning less than $35,568 annually*. The previous salary threshold level was $23,660 annually.
New penalty for wage theft:
Effective January 1, 2020, wage theft greater than $2,000 is now a felony.
Whom does this apply? The new law applies to employers who are subject to the federal Fair Labor Standards Act, including foreign labor contractors and migratory field labor contractors or crew leaders (excluding federal, state, and local government entities).
A look ahead to 2021: Equal Pay for Equal Work Act.
The “2019 Senate Bill 85 - Equal Pay for Equal Work Act” outlines several changes to prepare you and your business for 2021.
Effective January 1, 2021: Equal Pay for Equal Work Act. The law prohibits discrimination between genders based on pay. Companies will be required to post all job openings internally while listing a salary range for the position. It also forbids employers from asking about salary history.
If you have any questions regarding any of the information provided above or would like any additional information, please contact us at info@mb-law.law
**This information is for general purposes only and is not intended to constitute any specific legal advice of any type.**