Inflation Adjustment Process
In accordance with the Colorado Constitution, the Colorado minimum wage is adjusted annually for inflation as measured by the Consumer Price Index used for Colorado. The inflation adjustment is based on the Consumer Price Index for All Urban Consumers (CPI-U), All Items, for the Denver-Boulder-Greeley combined metropolitan statistical area as published by the United States Bureau of Labor Statistics (BLS).
The CPI-U increased 2.9 percent from the first half of 2013 to the first half of 2014, which results in the new minimum wage of $8.23 per hour effective January 1, 2015. The August 19, 2014, BLS press release provides additional details on the Consumer Price Index data used in the minimum wage adjustment.
Subsequent annual minimum wage calculations will be identical and will compare changes in the CPI-U from the first half of the preceding year with the first half of the current year to calculate a new minimum wage for the next year.
For example, changes observed in the CPI-U from the first half of 2014 to the first half of 2015 will be used to calculate the minimum wage effective January 1, 2016. It is anticipated that data for future minimum wage adjustments, as provided by the BLS, will be available to the public in mid-August preceding each January adjustment.
Colorado Minimum Wage Order Number 31 (effective 1/1/15)
Colorado Constitution, Article XVIII Section 15
Fair Labor Standards Act
United States Bureau of Labor Statistics (BLS)
BLS Press Release of August 19, 2014
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