Get Ready To Earn Less
Colorado's Minimum Wage Going Down
POSTED: 6:06 pm MST December 28, 2009
UPDATED: 6:18 pm MST December 28, 2009
DENVER -- Some of Colorado's workers will make 4 cents less an hour starting on Jan. 1, when the state's minimum wage decreases to $7.24.Minimum wage for employees who regularly receive tips will drop to $4.22 an hour.The decline in the minimum wage may seem like piling on in such a tough economy, but officials said it's happening because state law requires the wage to be adjusted annually for inflation.
Here's how it works: The Colorado minimum wage is adjusted annually for inflation as measured by the Consumer Price Index used for the state. The inflation adjustment is based on the Consumer Price Index for All Urban Consumers, also known as the CPI-U.The CPI-U decreased .6 percent from to the first half of 2008 to the first half of 2009. That means the minimum wage also decreases about .6 percent, from $7.28 to $7.24 an hour. The same process will be used to adjust the minimum wage again for 2011.The federal minimum wage remains at $7.25 an hour.
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