Denver adopts minimum wage ordinance

Denver, Colo. has enacted an ordinance that will establish a minimum wage for workers employed in the city.

Background:

Earlier this year, Colorado enacted legislation allowing local governments to set their own minimum wage higher than the state's minimum wage, which is scheduled to increase to $12 per hour on January 1, 2020.

Denver Minimum Wage:

Under the Denver ordinance, the minimum wage for workers employed in the city will generally be:

• $12.85 beginning January 1, 2020.
• $14.77 beginning January 1, 2021.
• $15.87 beginning January 1, 2022.

Beginning January 1, 2023, the city's minimum wage will be adjusted annually for inflation.

Note: There are separate minimum wages for city contractors and for employees covered by prevailing-wage-rate requirements. Those rates will still apply to covered workers.

Exceptions:

The city's minimum wage won't apply when:

• Work is performed outside of Denver;
• An employee works fewer than four hours within Denver in a week; or
• The employee is only traveling through Denver while working, with no employment-related or commercial stops in the city except for refueling or the worker's personal meals or errands.

Tipped Employees:

The minimum direct cash wage for tipped employees in Denver will be:

• $9.83 per hour in 2020.
• $11.75 per hour in 2021.
• $12.85 per hour in 2022.

If the employee's direct cash wages and tips don't equal or exceed the applicable minimum wage, the employer must make up the difference.

Employer Notice and Recordkeeping:

Employers must post a city-approved notice concerning the minimum wage and indicating that complaints related to any alleged violations may be submitted to the city auditor. Employers must display the notice in English and Spanish.

The ordinance also requires employers to retain payroll records for at least three years.

Compliance Recommendations: