Minimum Wage Increase Impact

Raising the federal minimum wage is still dependent on a vote in the US Senate and whether President Bush will veto it. But what impact would it have on the Colorado minimum wage increase that went into effect this month?

Earlier this week the House voted to raise the federal minimum wage for the first time in a decade to $7.25. Last November Colorado voters voted to raise the state's minimum wage to $6.80 and increase it every year to meet inflation.

If the Federal Government does in fact increase the minimum wage Colorado would have to comply. Therefore paying employees the $7.25 as well as continuing to increase it by about 4% every year.

Ultimately Colorado would be paying out higher than the Federal Government. The only way to change Colorado's law would be another vote.