NewburyportNews.com, Newburyport, MA

Business

October 13, 2009

Colo. minimum wage to drop as living costs fall

DENVER (AP) — Colorado officials say the state will become the first to lower its minimum wage because of a falling cost of living.

The state Department of Labor and Employment has ordered the wage to drop to $7.24 from $7.28, effective Jan. 1. But that's lower than the federal minimum wage of $7.25, so minimum wage workers would lose only 3 cents an hour.

Colorado is one of 10 states where the minimum wage is tied to inflation. The indexing is meant to protect low-wage workers from having flat wages as the cost of living goes up. But unlike most of the states, Colorado's provision allows wage declines.

It will be the first decrease in any state since the federal minimum wage law was passed in 1938.

Despite the change, employers are free to leave wages flat.

1
Text Only | Photo Reprints

Special Features
Port Pics
AP Video
Ariz. Inmate Dies 2 Hours After Execution Began Crash Kills Teen Pilot Seeking World Record LeBron James Sends Apology Treat to Neighbors Raw: Funeral for Man Who Died in NYPD Custody Migrants Back in Honduras After US Deports Israeli American Reservist Torn Over Return Raw: ISS Cargo Ship Launches in Kazakhstan Six Indicted in StubHub Hacking Scheme Former NTSB Official: FAA Ban 'prudent' EPA Gets Hip With Kardashian Tweet Bodies of MH17 Victims Arrive in the Netherlands Biden Decries Voting Restrictions in NAACP Talk Broncos Owner Steps Down Due to Alzheimer's US, UN Push Shuttle Diplomacy in Mideast Trump: DC Hotel Will Be Among World's Best Plane Crashes in Taiwan, Dozens Feared Dead Republicans Hold a Hearing on IRS Lost Emails Raw: Mourners Gather As MH17 Bodies Transported Robot Parking Valet Creates Stress-free Travel Raw: Fight Breaks Out in Ukraine Parliament