Friday

06-06-2025 Vol 1983

Colorado Governor Signs Amended Restaurant Wage Bill Amid Controversy

Colorado Governor Jared Polis has signed a heavily amended restaurant wage bill, stirring tensions among local municipal leaders regarding its implementation.

The legislation, known as House Bill 1208, was passed into law this week and has become one of the most contentious topics of discussion this year.

Despite its passage, the bill has not garnered enthusiasm from various stakeholders, including the governor himself.

HB-1208 specifically targets city leaders in Denver and Boulder, empowering local governments to adjust the subminimum wage for tipped workers in restaurants.

Currently, this tipped minimum wage sits at $3.02 below the standard minimum wage across Colorado.

In cities like Denver and Boulder, which have elevated their standard minimum wages above the state level, this arrangement means that the tipped minimum will adjust accordingly.

During the signing, Polis issued a warning to municipal leaders indicating that if Boulder, Denver, and Edgewater do not utilize the new law to lower their tipped minimums, the legislature may pursue the matter again next year with increased assertiveness.

Polis’s statement serves as a reference to how drastically HB-1208 had been watered down from its original intent.

Initially, the bill proposed to directly reduce the tipped minimum wage in areas that had adopted higher wages, a move that met opposition from various sectors in the legislature.

The dining industry, still struggling to recover from the impacts of the pandemic and rising costs, had pushed for a more direct wage cut.

However, the proposal split the Democratic caucus and faced backlash from labor groups who viewed it as serving the interests of powerful business owners at the expense of workers.

This opposition ultimately led to the compromise which resulted in HB-1208, reframing it not as a direct wage cut, but rather as a nudge to local authorities to take action.

Reactions to the final version of the bill have been mixed, with both supporters and opponents expressing dissatisfaction.

In his statement, Polis described HB-1208 as an “important first step” in addressing the issues faced by restaurants in Colorado, emphasizing the need for local governments to act in favor of the law.

“We heard through the process a desire to maintain local control so that localities can address this problem themselves,” he wrote.

The governor indicated that he would closely monitor the progress in Denver and Boulder, acknowledging their unique challenges in sustaining their restaurant industries.

However, it remains uncertain whether local governments will respond to this call to action.

Denver Mayor Mike Johnston had previously supported the original version of HB-1208, which directly sought to reduce wages.

Even though his administration testified in favor of the bill, members of the Denver City Council openly opposed it.

Currently, Denver’s minimum wage exceeds the state minimum by $4, standing at $18.81 per hour, which consequently makes the tipped minimum wage in the city $15.79.

A spokesman for Mayor Johnston stated that while it’s premature to determine the city’s next steps regarding HB-1208, further actions are needed to support the restaurant industry effectively.

“We’ll review the finished legislation and discuss with the council to determine next steps,” he remarked.

Shannon Aulabaugh, a spokeswoman for Boulder, noted that any potential changes to the tipped minimum wage would ultimately be a political decision made by the City Council.

Dan Maples, the city manager of Edgewater, mentioned that the City Council has yet to explore the new law but may look to Denver for guidance.

He refrained from commenting on Polis’s warning that the state legislature might intervene again if cities do not make necessary adjustments.

Meanwhile, the Colorado Restaurant Association expressed renewed optimism following the passage of HB-1208.

The association lauded the bill as a significant achievement for independent restaurants across the state and strongly urged local municipalities to take action in accordance with Polis’s request.

“This is a huge accomplishment for independent restaurants across Colorado,” remarked Sonia Riggs, the CEO and president of the restaurant association.

“It protects the traditional tipping model as a viable option, which most local restaurants utilize.”

Riggs concluded by emphasizing the hope that local governments would utilize their newfound authority to benefit a struggling industry.

As Colorado navigates the complexities of its restaurant wage policy, the coming months will reveal whether local governments will capitalize on HB-1208’s provisions.

image source from:https://www.denverpost.com/2025/06/05/colorado-tipped-minimum-wage-law-denver-restaurants/

Benjamin Clarke