DENVER (KDVR) — The start of 2024 will bring an increase in Denver’s minimum wage to $18.29 per hour.
Denver’s minimum wage adjusts every year based on the consumer price index to ensure wages keep up with Denver’s cost of living, according to a release from the city.
The 2024 increase was 5.8%, less than the 2023 increase of 8.94%.
“Colorado had the highest restaurant inflation out of any state in the union last year,” said Colin Larson, director of government affairs for the Colorado Restaurant Association.
Larson said the minimum wage increase is going to impact people working in the dining and bar industry and those going out to eat and drink.
“We are seeing places experiment with different models of service charges, like the back of the house fee or happy employee fee,” Larson said.
Tipped employees, according to Larson, also will see the dollar increase. But the city said employers can still claim up to $3.02 in tip credits per hour for qualified food and beverage workers, provided employers can show documentation of at least that amount in actual tips received.
“So the paycheck they receive from the business would be $3.02 less than that minimum wage,” Larson said.
Larson said he’s worried the increase will cause more strain on businesses than good, especially when it comes to hiring back-of-the-house staff, as tipped employees in the front are also seeing the increase.
“That just leaves less money for that business owner to pay to the back of the house,” Larson said.
Denver restaurateur weighs in on minimum wage
“I pay my people above minimum wage to keep them here. I don’t like the government telling me what I have to do,” said Steve Ballas, owner of Steve’s Snappin Dogs.
Ballas said he already pays his employees above minimum wage, and when it rises, it can change employee expectations.
“What happens when they do this every year and you have someone working for you making $20? They are going to want a raise in January, ’cause everyone else is getting a raise,” Ballas said.
The city said anyone can file a wage complaint for themselves, on behalf of someone else or anonymously. Click on the link here to do so.
“Wage theft often impacts the most vulnerable people in Denver,” Auditor Timothy O’Brien said. “That’s why we’re working quickly to deter wage theft, reduce the harms of poverty and expand economic justice.”
