2023 HR Changes Employers Need to Know!

The following wage and benefit updates are effective for employers in Denver and the State of Colorado:

Minimum Wage

• Effective January 1, 2023, Denver’s minimum wage increases from $15.87 to $17.29 per hour.
• Tipped employees (e.g., servers, bartenders) may be paid $3.02 below the minimum wage ($14.27/hour) if tips bridge the gap; otherwise, employers must cover the difference (“tip credit make-up”).

Exempt Salary Threshold

• Effective January 1, 2023, the State of Colorado’s exempt salary threshold rises from $865.38/week ($45,000/year) to $961.54/week ($50,000/year).
• Employees earning less than this amount cannot be classified as exempt, with limited exceptions (e.g., Outside Sales persons paid on commission).

Colorado FAMLI (Family and Medical Leave Insurance)

• Voter-approved program providing up to 12 weeks of paid leave (16 weeks for childbirth complications) for eligible employees after 180 days of employment.
• Covered reasons include:
  • Bonding with a new child (biological, adopted, or foster)
  • Caring for a serious personal or family health condition
  • Military deployment arrangements
  • Addressing domestic violence or sexual assault
• Funding: 0.9% of wages, split equally between employers and employees (0.45% each). Employers may opt to cover the full cost as a benefit.
• Premium collection begins January 1, 2023; benefits become available January 1, 2024.
• Employers with 9 or fewer employees are exempt from the employer contribution but must remit the employee’s 0.45% share.
• Employers must maintain benefits and job protection during leave (similar to FMLA).
• Employers with private leave plans may apply for an exemption if their program is comparable to FAMLI.

For details, visit https://famli.colorado.gov/.

Colorado Secure Savers Program

• Mandatory for employers with 5+ employees, in business for 2+ years, and not offering a qualified retirement plan (e.g., 401(k)).
• Automatic enrollment in a Roth IRA with a default 5% payroll deduction (contributions are post-tax; withdrawals in retirement are tax-free).
• Employees may adjust their savings rate or opt out entirely.
• Accounts are portable across jobs and states.