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Colorado Repeals Subminimum Wages for Workers with Disabilities

In an effort to promote economic justice, enhance self-sufficiency and encourage competitive integrated employment, on June 29, 2021, Colorado repealed a law that permitted employers to pay subminimum wage rates to employees with a disability.

The amendment became effective July 1, 2021, and requires employers to compensate disabled employees at or above the minimum wage rate unless they hold a subminimum wage certificate issued before June 30, 2021.

Employers that hold certificates issued before June 30, 2021, must submit data to the Colorado Department of Health Care Policy and Financing (HCPF) regarding the employees paid under those certificates. By June 30, 2022, employers who hold certificates must submit to the HCPF a transition plan detailing how they expect to phase out all employees currently paid under a special certificate by July 1, 2025. 

Next Steps for Employers

Colorado employers that currently hold subminimum wage certificates should prepare to submit all required data to the HCPF and phase out the subminimum wage for all affected employees by July 1, 2025. 

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.