New Minimum Wage Takes Effect in Boulder, Colorado
Littler / By Luke Gilewski, Libby Valenzuela, and Jennifer Harpole
The City of Boulder has enacted its own local minimum wage ordinance, which took effect January 1, 2025, setting the city’s minimum wage at $15.57 per hour. The new law adds another challenge to multi-jurisdiction compliance for employers as the city’s minimum wage is higher than the State of Colorado’s, which increased to $14.81 per hour on January 1, 2025.
Since 2020, Colorado law has allowed local governments to enact their own minimum wages. As a result, communities across Colorado began exploring an increase to their local minimum wage, but to date, only three communities have adopted such laws – Denver, Edgewater, and unincorporated Boulder County.
Since the City of Boulder is located within Boulder County, employers with operations in both the city and the county will need to navigate a situation where employees performing similar work may be subject to different wage rates depending on their specific location on any given day. For comparison, effective January 1, 2025, unincorporated Boulder County – including Niwot, Eldorado Springs, Eldora, Allenspark, Gold Hill, Hygiene, Coal Creek Canyon, and those parts of Gunbarrel that are not part of the City of Boulder – has set its minimum wage at $16.57 per hour or $13.55 per hour with tip credit. The county’s wage will increase by a fixed amount each year until it reaches $25.00 per hour in 2030, before being indexed to inflation thereafter. This dynamic creates an added layer of complexity for employers, who must carefully track employee assignments across these differing localities to ensure compliance with local wage laws.
The City of Boulder’s ordinance applies to employers with one or more “covered” employees, which are defined under the ordinance as individuals performing, or expected to perform, four or more hours of work for an employer in any given week within the City of Boulder. The ordinance defines “work” as “any services performed physically within the geographic boundaries of the City of Boulder on behalf of or for the benefit of an employer whether on an hourly, piecework, commission, time, task, or other basis.” Excluded from the law are individuals traveling through Boulder’s jurisdiction with no employment-related or commercial stops, individuals providing volunteer services that are uncompensated except for reimbursement for expenses such as meals, parking, or transportation, and independent contractors. Interestingly, the ordinance states that independent contractors are defined by federal – not state – law…
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