What’s the problem? 

While Denver's minimum wage climbs annually with the consumer price index (CPI), the tip credit — the portion of wages employers can offset with tips — has been tied to a fixed rate of $3.02 less than the minimum wage, leaving restaurants to absorb almost the entire cost of every increase.

Labor costs for Denver restaurants have increased by 50-55% over the past 5 years. As a result, Denver restaurants now face higher labor costs than restaurants in New York City, and hundreds of local restaurants have closed.

As of 2026, Denver City Council has the authority to unfreeze, or "float," the tip credit, so that it grows alongside the minimum wage. They can act now to save the restaurants, jobs, and the neighborhoods that make Denver worth fighting for.