Colorado minimum wage 2026: state, Denver and tipped rates

The Colorado minimum wage is $15.16 an hour in 2026 and applies to nearly every employer in the state, whatever its size. On January 1, 2027, it goes up to $15.71 an hour. That is the state floor. If your staff work in Denver, Boulder, unincorporated Boulder County or Edgewater, a higher local rate applies for the hours worked there. This guide covers the state and local rates with their sources, the Colorado tipped minimum wage and the $3.02 offset, the youth rate, the exempt salary threshold that moves with inflation, the daily overtime, rest break and paid sick leave rules that CDLE enforces, worked pay examples, and a checklist for the January change.

Colorado minimum wage 2026 and the 2027 increase

The rate is set by the Colorado Department of Labor and Employment's Division of Labor Standards and Statistics in a rule called the Publication And Yearly Calculation of Adjusted Labor Compensation Order, or PAY CALC Order. The 2026 PAY CALC Order set the minimum wage at $15.16 an hour from January 1, 2026, up from $14.81. On August 13, 2026, CDLE announced that the Colorado minimum wage for 2027 will be $15.71 an hour from January 1, 2027, a 3.6% increase.

How the number is set: Amendment 70, approved by voters in 2016, raised the rate in steps to $12.00 in 2020 and wrote into the state constitution that it is adjusted every January 1 for inflation, using the Consumer Price Index. CDLE calculates the new figure each summer, publishes a proposed PAY CALC Order in the fall and adopts it before the end of the year.

The federal minimum wage is still $7.25, so it plays no part in Colorado pay. For how the minimum wage in Colorado compares with other states, see our minimum wage by state table.

Weekly pay examples at the Colorado minimum wage

These examples show gross pay before taxes for a non-exempt employee paid only by the hour.

Example with weekly overtime. Noah Patel stocks shelves at a grocery store in Colorado Springs for the state minimum of $15.16 and works 44 hours in one workweek. Colorado owes time and a half for hours over 40 in a workweek, so 4 hours are overtime at $22.74 an hour ($15.16 × 1.5).

1. Regular pay: 40 hours × $15.16 = $606.40.
2. Overtime pay: 4 hours × $22.74 = $90.96.
3. Total for the week: $606.40 + $90.96 = $697.36.

The same week in 2027 pays 40 × $15.71 = $628.40 plus 4 × $23.565 = $94.26, for $722.66.

Example with daily overtime. Colorado also counts overtime by the day. Grace Okafor works at a Pueblo warehouse for $15.16 and puts in a 14-hour shift on Monday to cover an inventory count, then three 8-hour days, for 38 hours in the week. The weekly test gives zero overtime, but the daily test gives 2 hours (14 minus 12). The COMPS Order says to use whichever calculation pays more, so she is owed 36 hours × $15.16 = $545.76 plus 2 × $22.74 = $45.48, for $591.24. A payroll setup that only looks at the 40-hour week would underpay her by $45.48. Our how to calculate overtime guide walks through two-rate weeks and bonuses, and the overtime calculator has a Colorado daily option.

Example with a 16-year-old. A 16-year-old bagging groceries in Fort Collins may be paid 15% below the state rate, $12.89 an hour in 2026, if the employer documents eligibility under CDLE's youth employment rules. A 15-hour week pays $193.35. The same job at a Denver store pays the full Denver rate; see the minors section below.

Colorado tipped minimum wage and the $3.02 tip offset

Colorado allows a tip offset, often called a tip credit, of up to $3.02 an hour for employees who regularly receive tips. The COMPS Order defines a tipped employee as one who regularly receives at least $1.64 an hour in tips. The $3.02 figure is written into the state constitution and does not change with inflation, so the tipped cash wage moves up by the same amount as the full rate every January.

Three rules make the offset work in practice:

• Tips must fill the gap every week. The cash wage plus tips actually received must reach the full minimum wage for the workweek. A server in Grand Junction paid $12.14 for 30 hours receives $364.20 in cash wages and needs at least $90.60 in tips (30 × $3.02) to reach $454.80. If tips fall short, the employer makes up the difference on that paycheck.
• Overtime is based on the full rate. Time and a half for a tipped employee at the minimum wage is calculated on $15.16, giving $22.74 an hour, not on the $12.14 cash wage.
• Local offsets can differ. House Bill 25-1208, passed in 2025, lets cities and counties with their own minimum wage raise the tip offset above $3.02. Edgewater used that authority and applies a $4.67 offset for 2026, while Boulder's council voted in July 2026 to leave its offset at $3.02. Denver's $3.02 credit applies only in the food and beverage industry.

Tips belong to the employee. Under the Colorado Wage Act an employer may not keep any part of them, and tip pools may include only employees who customarily receive tips.

Denver minimum wage and other local rates for 2026 and 2027

Four Colorado jurisdictions set a minimum wage above the state rate, all adjusting on January 1. Each applies to work performed inside its boundaries, and each uses a 4-hour test: an employee who works at least 4 hours in a week inside the jurisdiction is owed the local rate for those hours, even if the employer is based elsewhere. Someone only driving through does not count. The rates below come from each jurisdiction's official page as of November 12, 2026, except where noted.

A few notes on the table. The Denver minimum wage comes from a 2019 ordinance and has adjusted for inflation every year since 2022; Denver Labor publishes the next year's figure each fall and a mandatory work site poster each January. Boulder's city rate applies to minors as well as adults. The Boulder County rate covers only unincorporated areas, not Boulder, Longmont, Louisville, Lafayette, Erie, Superior, Lyons, Nederland, Jamestown or Ward, and the county's property search tool shows whether an address is unincorporated. Boulder County slowed its original schedule in November 2025, which is why the city and county rates, equal in 2026, split in 2027.

The local rate depends on where the work happens, not where the business is registered. A cleaning crew that spends Monday in Denver, Tuesday in Lakewood and Wednesday in Edgewater is owed three different rates for the week. A time clock app with GPS and geofencing that records where each shift happened makes the split straightforward at payroll time, and a shift scheduling tool that shows labor cost per shift at each location helps managers see the difference before the schedule is published.

Minors, who is covered and the posting rule

• Minors. CDLE's COMPS guidance says most minors, but not emancipated minors, may be paid 15% below the full state minimum wage: $12.89 in 2026. Since February 1, 2026, the reduced rate is subject to the Colorado Youth Employment Standards rules, so the employer must document the minor's eligibility, and a minor employed in violation of youth employment law must get the full rate. The state poster also warns that the 15% reduction is not available under some local minimum wages: Boulder's ordinance applies its full rate to people under 18, and Denver limits the reduction to unemancipated minors in a city-certified youth employment program (confirm the details with Denver Labor).
• Who is covered. The COMPS Order covers all employees and employers in Colorado unless a specific exemption applies. Common exemptions are salaried executive, administrative and professional employees who meet the duties and salary tests (see below), outside salespeople, certain agricultural jobs, and some seasonal camp and outdoor education staff who have their own reduced rate.
• Hours worked. Time spent on required training and meetings, and on opening and closing the business, counts as hours worked and is paid at the minimum wage or more.
• Posting. Employers must display the current COMPS Order poster where employees can easily read it. If a physical posting is impractical, such as for a remote or field crew, the employer must give each employee a copy of the Order or poster within their first month. Denver requires its own work site poster, updated each year, for employers with staff working in the city.

Colorado minimum wage history, 2020 to 2027

The state figures come from CDLE's minimum wage history; the Denver figures from Denver Labor. Colorado has used a single statewide rate for all employer sizes throughout, and every change takes effect January 1.

The jump from 2022 to 2023 ($1.09) and from 2023 to 2024 ($0.77) reflects the high inflation of those years. The 2027 step of $0.55 is the smallest since 2022. Denver's rate has grown faster because its ordinance started from a higher base and uses the Denver-area index.

Exempt salary thresholds for 2026 and 2027

The Colorado minimum wage is not the only figure CDLE adjusts each year. The COMPS Order sets a state salary floor for the executive, administrative and professional exemptions from overtime, and since 2025 that floor has been indexed to inflation in the same PAY CALC Order. For 2026 it is $57,784 a year, or $1,111.23 a week, and the highly compensated employee level is 2.25 times that, $130,014. Both are far above the federal $684 a week ($35,568 a year), so the Colorado test is the one that matters for Colorado employers.

Salary is only half the test; the employee's duties must also fit one of the exemptions, as our exempt vs non-exempt guide explains. A salaried assistant manager at a Denver restaurant earning $58,000 passes the Colorado salary test in 2026. If CDLE's 2027 figure comes in above that, the employer must either raise the salary before January 1, 2027 or reclassify the manager as non-exempt and start paying overtime, including Colorado's daily overtime. City minimum wages do not change the exempt threshold; only the state figure counts.

Overtime, rest breaks, meal periods and paid sick leave in Colorado

Four rules travel with the Colorado minimum wage on every paycheck. They come from the COMPS Order and the Healthy Families and Workplaces Act, both enforced by CDLE's Division of Labor Standards and Statistics.

• Overtime. Non-exempt employees earn at least 1.5 times their regular rate for hours over 40 in a workweek, over 12 in a workday, or over 12 consecutive hours regardless of when the workday starts or ends, whichever calculation pays more. The regular rate cannot be below the minimum wage, so an overtime hour pays at least $22.74 in 2026 and $23.565 in 2027. Our time and a half guide covers how Colorado's daily rule compares with California's.
• Rest periods. Employers must authorize and permit a paid, duty-free 10-minute rest period for each 4 hours of work: none for a shift of 2 hours or less, one for a shift over 2 and up to 6 hours, two for over 6 and up to 10 hours, three for over 10 and up to 14 hours, and so on. Where practical, the break falls in the middle of each 4-hour block. A rest period that is denied or cut short must be paid for as extra time worked.
• Meal periods. Employees who work a shift longer than 5 hours get an uninterrupted, duty-free meal period of at least 30 minutes, which may be unpaid. If the nature of the work makes a duty-free break impractical, the employee may eat while working and must be paid for the time.
• Paid sick leave. The Healthy Families and Workplaces Act (HFWA) covers every employer in Colorado, regardless of size, and every employee, including part-time, seasonal and temporary staff. Employees earn 1 hour of paid sick leave for every 30 hours worked, starting on their first day, up to 48 hours a year, and may carry up to 48 unused hours into the next year. Leave covers the employee's own illness, a family member's care, domestic violence, bereavement and certain weather or public health closures. Unused HFWA leave does not have to be paid out when someone leaves, but earned vacation does; our paid time off guide covers how Colorado treats vacation as wages.

Because daily overtime, rest breaks and sick leave all key off hours actually worked, accurate punches matter more in Colorado than in most states. Record break times, not just shift start and end, and run the 12-hour test on every day, not just the 40-hour test on every week.

Paydays, pay stubs and final paychecks in Colorado

The Colorado Wage Act (C.R.S. 8-4-103 and 8-4-109) sets the timing rules that go with the rate.

• Pay frequency. Regular pay periods may be no longer than one calendar month or 30 days, whichever is longer, and payday must fall no later than 10 days after the pay period closes, unless the employer and employee mutually agree on a different schedule. Weekly, biweekly and semimonthly pay all comply.
• Pay statements. Each employee must get an itemized written pay statement at least monthly or with each payment, showing gross wages, every withholding and deduction, net wages, the pay period dates, the employee's name or Social Security number, and the employer's name and address. Our guide to reading a pay stub shows where each item sits.
• Final pay after a discharge. When the employer ends the relationship, all earned wages are due immediately. If the payroll unit is not working at that moment, the wages must be available within six hours of the start of its next regular workday, or within 24 hours if payroll is off-site, delivered to the work site, the employer's local office or the employee's last-known mailing address.
• Final pay after a resignation. When an employee quits, wages are due on the next regular payday. Earned vacation counts as wages in Colorado and must be paid out at separation under either timeline; see our termination letter guide for the state-by-state final pay table.

What employers should do before January 1, 2027

1. List every work location. Note whether each is in Denver, the city of Boulder, unincorporated Boulder County or Edgewater, and record the current and 2027 rate for each. Use the Boulder County property search to settle addresses near the Boulder city line.
2. Find everyone under $15.71. Update hourly rates for the first payroll period that includes hours worked on or after January 1, 2027, plus any higher local rate. If a pay period straddles the date, hours from January 1 on are paid at the new rate.
3. Recheck tipped cash wages. The state cash wage moves to $12.69 and Denver's to $16.82. Keep a weekly tip record so you can prove the offset was earned.
4. Check exempt salaries. Watch for CDLE's adopted 2027 PAY CALC Order and compare every exempt salary with the new threshold. Reclassify anyone below it and start tracking their hours.
5. Watch for pay compression. A shift lead earning $15.75 today will soon earn 4 cents more than a new hire at the state minimum. Decide on raises before the January schedule is published.
6. Recalculate overtime and premiums. Overtime and shift differentials are based on the regular rate, so they rise with the base wage, and Colorado's daily test applies to every one of them.
7. Swap the posters. Post CDLE's 2027 COMPS Order poster when it is published, and Denver Labor's 2027 work site poster if you have staff in Denver.
8. Update sick leave accruals. HFWA accrual is in hours, not dollars, but the value of each hour rises with the wage, so check that your payroll pays sick time at the employee's current regular rate.

Underpaying the minimum wage is costly. CDLE's Division of Labor Standards and Statistics investigates wage complaints and can order back wages, penalties and fines, and Denver Labor enforces the city rate separately with its own back pay and penalty authority. Employees have up to two years to file a wage claim, or three for a willful violation. If you also have staff in California, the same January 1 checklist applies at $17.40; see our California minimum wage guide.

Frequently asked questions