As of January 1, 2020, the minimum wage increased in 21 states, including Arizona, California, Colorado, and New Mexico. In addition to state laws, there are many municipalities and counties around the country that have a separate minimum wage from their state’s. These include Denver, CO; Flagstaff, AZ; and multiple cities and counties in both New Mexico and California.
It can be confusing for employers when trying to figure out what minimum wage order to follow. Generally, the law that is most beneficial to employees is the one to adopt. For example, if you have employees in Denver, three wage laws cover them: Federal ($7.25/hour), Colorado ($12.00/hour), and Denver ($12.85/hour). In this case, Denver is the most beneficial to employees, so that is the wage employers must pay. Outside of Denver, however, Colorado employers pay the state minimum wage.
Employers need to know the minimum wage in each location where they operate and be sure to update the rates in the payroll system for all impacted employees. Call Employers Council with questions; we can help.