Thursday, December 20, 2012

Colorado Minimum Wage Goes Up

Minimum-wage workers in Colorado get 14 cents an hour more in 2013

Those workers could be celebrating their wage increase in the unemployment line. With businesses struggling, the last thing you want to do is artificially increase their costs. Those businesses will have to deal with those costs somehow and the most obvious answer is to cut hours or let people go. We've already seen that with companies across the country cutting back thanks to ObamaCare.

This is just another fun bit of unpredictability for businesses. The minimum wage in Colorado is indexed to inflation. That makes it harder for business owners to plan. How can they know what their employee costs will be next year or the year after? What will happen when Federal policies drive inflation through the roof and the minimum wage with it? Colorado's unemployment rate, especially among the young, will go up with it.