Can Your City Mandate a Minimum Wage Increase?

Increasingly more states are legally disallowing local governments from passing ordinances requiring employers to pay a local minimum wage. If you have employees in Arizona, California, New Mexico, or Wyoming, your local government may increase minimum wages. If you have employees in Utah, the local governments cannot do this.

Colorado was just like Utah, until this past May. It will be interesting to see if any other states will follow Colorado’s unique plan where local governments can have ordinances with restrictions. Those restrictions include the amount or percentage of the increase, the timing of the increase, and the percentage of cities and towns that can pass such an increase without an amendment of the statute. Denver is planning to increase its minimum wage to $15 per hour eventually.

Currently, the states are split over this issue. The winds of change are blowing both ways, and whether a state is ‘red’ or ‘blue’ does not seem to be the issue. Employers Council’s advice is to follow this trend, and we will keep you updated.