MINIMUM WAGE INCREASES EFFECTIVE JANUARY 1, 2024

HR / Workplace

By Kim Adamson

On January 1, 2024, the minimum wage was increased in 22 states and at least 38 cities across the U.S. Nevada, Oregon, and Washington D.C. plan to raise their minimum wage effective July 1, 2024, and Florida’s minimum wage will be increased on September 30, 2024.

Many states and cities in the U.S. have minimum wage rates that are higher than the current federal minimum wage for covered non-exempt employees, which is $7.25 and has been at that rate since 2009. The Fair Labor Standards Act (FLSA) contains the federal minimum wage provisions. In cases where an employee is subject to state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. 

Colorado – Effective January 1, 2024, the state’s minimum wage increased to $14.42 per hour ($1,057.69 per week and $55,000 annually for exempt employees). The hourly wage for tipped employees also rose to $11.40 per hour, provided the tip credit of $3.02 raises the total wage to the state’s full minimum wage. 

City of Edgewater – Edgewater enacted a minimum wage law effective January 1, 2024, raising the minimum wage in the city to $15.02. The hourly wage for tipped employees increased to $12.00 with a tip credit of $3.02 per hour. Edgewater ordinance requires the minimum wage to be applied based on where the work is performed and not the location of the business. If more than four hours of work is performed within the City of Edgewater, the hours must be paid at the City’s minimum wage rate. 

Boulder County (unincorporated areas only) – An hourly minimum wage law for unincorporated areas, meaning the parts of Boulder County that do not fall within incorporated towns and cities, was introduced on January 1, 2024, that increased the hourly minimum wage to $15.69. The hourly wage for tipped employees is $12.67 with a tip credit of $3.02 per hour.

City & County of Denver – Effective January 1, 2024, the minimum wage increased to $18.29. The minimum wage for tipped food and beverage workers is $15.27 per hour, provided the employee earns at least $3.02 in tips. Denver’s minimum wage law applies to all workers, regardless of Fair Labor Standards Act (FLSA) designation, job title, or job duties, and includes sales staff. Base salary and commissions can apply towards minimum wage calculations per pay period, but bonuses do not apply. Employers can confirm if work is performed within the City & County of Denver boundaries by utilizing the Denver Minimum Wage-Regional Address Finder on the Denver Auditor’s website.  The minimum wage must be paid to the employee if more than four hours of work is performed within the City & County of Denver’s boundaries.

Posting Requirements: 

The Colorado Department of Labor and Employment (CDLE) creates the Colorado Overtime and  Minimum Pay Standards (COMPS) Order Poster each year, which is available in English, Spanish, and other languages. Displaying the most up-to-date version of this poster meets the requirements for The State of Colorado, City of Edgewater, and Boulder County. The COMPS poster also outlines key exemptions to the minimum wage and overtime laws. The poster may be found at the following website:

https://cdle.colorado.gov/dlss-home-page/posters

 Employers are required to post the Denver Minimum Wage/Wage Theft poster in a conspicuous place for all employees. (Link to poster: https://denvergov.org/wage_theft_poster_2024-digital.pdf)

Based on information from Investopedia as of January 1, 2024, below are the top ten 10 cities in the U.S. that pay the highest minimum wage, which includes Denver.

City/Local Jurisdiction Minimum hourly salary effective 1/1/24
Tukwila, WA (more than 500 EEs) $20.29
Seattle, WA $19.97
SeaTac, WA $19.71
Mountain View, CA $18.75
Emeryville, CA $18.67
Sunnyvale, CA $18.55
Denver, CO $18.29
Tukwila, WA (15 to 500 EEs) $18.29
El Cerrito, CA $17.92
Palo Alto, CA $17.80

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