Denver’s minimum wage will rise for most workers from $18.81 to $19.29 an hour starting on New Year’s Day.
That’s more than twice the national minimum wage of $7.25 and the highest in the state. Colorado’s minimum wage will be $15.16, except in communities like Denver with higher local minimum wages.
The other cities with local minimum wages are:
- Edgewater at $18.17
- Boulder and Boulder County at $16.82
Denver will also raise its tipped minimum wage — the base wage that must be paid to workers who get tips, such as restaurant servers.
Gov. Jared Polis and other lawmakers had pressed the city to freeze or lower the tipped minimum, saying restaurant labor costs are too high, but Denver lawmakers declined to intervene.
How Denver’s minimum wage is set
Each year, Denver’s Department of Finance changes the minimum wage based on inflation — as measured by the Consumer Price Index — in an attempt to keep up with the rising cost of living. This year, the minimum wage hike will be smaller than last year’s, as inflation has slowed.
Nearly all workers, regardless of immigration status, must be paid minimum wage. The exceptions include food and beverage workers. Tipped minimum wages will increase from $15.79 to $16.27 at the start of the year in Denver.
The tipped minimum is the amount that employers must pay in addition to tips. If tips are slow, the employer also has to kick in additional money to ensure that tipped employees are receiving at least the regular minimum wage when combining tips and wages.
The tipped minimum has been controversial because it has risen alongside the regular minimum wage in Denver. Some restaurant owners (and lobbyists) have argued that it is putting eateries out of business. In response, a recent state law gave cities the power to freeze or lower the tipped minimum, even if they are raising the regular minimum.
“With this new legislative tool, I call on local governments in Denver, the City of Boulder, Edgewater, and unincorporated Boulder County to take action to address the tip credit and ameliorate pay disparities between front and back-of-house,” Polis said at the time.
Only Edgewater has taken advantage of that new power. Denver lawmakers have not signaled any intention to change the city’s formula. Labor advocates have argued that tipped workers are struggling to survive and should be paid more.
Who has the highest minimum wage?
Municipalities in the states of Washington and California have some of the highest local minimum wages in the country, with a couple in Washington topping $21 an hour.
Washington also has had the highest statewide minimum in recent years, and it is set to reach $17.13 in 2026.
Workers who believe they are not being paid minimum wage should contact Denver Labor online, email [email protected], or call 720-913-WAGE (9243).
Denverite editor Andrew Kenney contributed to this report.
