Are there any exceptions to minimum wage laws?

Yes, there are exceptions to minimum wage laws in Colorado. Employers are not required to pay employees the minimum wage rate if their occupation is specifically exempted from the law by statute. For example, Colorado statutes exempt employees in certain occupations such as certain agricultural workers, babysitters, and volunteers from receiving the minimum wage rate. In addition, some employers are exempt from paying the minimum wage rate to their employees if they are able to prove they are financially unable to pay the rate. This exemption is known as the “economic hardship exemption” and is rarely used as it is difficult to prove without financial records. Further, Colorado also allows employers to pay a lower minimum wage rate for employees who receive tips. As long as the employee’s hourly wage rate plus tips equal at least the state’s minimum wage rate, then the employer is allowed to pay the lower rate. Finally, full-time students in Colorado may be paid up to 85% of the minimum wage rate for up to 20 hours of work per week for the duration of their school year. This is known as the student learner exception. Overall, it is important to note that employers must always verify that the exemptions they are claiming for their employees are valid in the state of Colorado. Any employer violating minimum wage laws in the state of Colorado can be fined or even face criminal prosecution.

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