Low-wage workers in eight states, including Colorado, will be celebrating more than just the New Year on January 1st, as the state mandated minimum wage increases. Colorado workers currently earning minimum wage will receive a $0.28 per hour raise with the start of the New Year, and will be earning $7.64 per hour in 2012. This comes out to $582.40 for workers with a full-time, 40 hour a week, schedule.
There is some debate on how minimum wage increases effect the local economy. Some experts believe that the increase of minimum wage encourages spending and boosts the local economy, while others believe that the increase in wages decreases the number of hires a company will make, thus having a negative effect.
In addition to the increase in Colorado minimum wage, businesses will also see their Colorado workers compensation insurance rates increase in 2012. When combining these two, it’s possible the job market may not grow as much as some would hope in 2012.
Regardless of the effect the increases have on the businesses, the news is good for those currently working in minimum wage positions. The yearly earnings of a person making minimum wage in 2012 will come out to $15,891.20, which is $4,752.20 more than the federal poverty level established in 2010 by the Census Burea.
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