Employers in Colorado can expect to pay minimum wage workers more at the beginning of next year.
As of Jan. 1 2012, the state’s minimum wage will increase (+28 cents) to $7.64 an hour in order to compensate for cost-of-living increases. The Denver Business Journal reports that this is the largest minimum wage increase the state has seen since 2006.
“We recognize the impact this increase will have for many employers struggling to stay competitive in a tough economy,” Ellen Golombek, executive director of the Colorado Department of Labor and Employment, said in a statement. “While we have no control over the fluctuations in the state’s minimum wage, the Department of Labor and Employment remains committed to supporting Colorado businesses in the year ahead.”
In 2006, Colorado passed an amendment to the state constitution that requires the minimum wage to be adjusted for inflation each year. The minimum wage is tied to the Consumer Price Index for the Denver-Boulder-Greeley region.
Although the current federal minimum wage sits at $7.25, employers in Colorado are required to pay the higher of the two amounts.
Nine other states are planning to increase minimum wages during January, including: Arizona, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont, and Washington.
