It’s official: Colorado passed Amendment 70 in November 2016, which will increase the minimum hourly wage incrementally from $8.31 to $12.00 by the year 2020.
Regardless of the way you chose to vote, changes will more than likely be made in the way companies do business over the next four years in Colorado in regards to this wage increase.
Organizations with lower profit margins will need to analyze increased payroll costs and adjust prices accordingly to keep the same product quality. However, the argument for the increase shows that higher pay will help employees with issues that would affect their job, such as being able to pay for car repairs and reliable child care.
This could ultimately require less dependency on public services, but that’s something we’ll see the effects of as time goes on.
Per a study by The University of Denver, raising the wage could add up to $400 million into the state economy and will raise living standards for 1 in 5 households. That’s over 400,000 households in Colorado.
Even if your company pays above minimum wage, that rate is always a factor in planning wages for your employees along with cost of living, skill set and its availability and level of difficulty, and overall state of your business.
Here are the numbers so you can create the best plan for your company moving forward:
Minimum wage for 2017: $9.30
Minimum wage for 2018: $10.20
Minimum wage for 2019: $11.10
Minimum wage for 2020: $12.00
If this is something you want more information on or are looking for consultative help to set appropriate pay scales for your organization, ROLINC Staffing can partner with you to continue the success of your business.