We are INDEPENDENT RESTAURANTS FOR A BETTER COLORADO.

When the minimum wage increases every year, non-tipped workers (cooks, dishwashers) are consistently left behind while tipped employees (servers, bartenders) get a double raise. 

Tipped workers get an hourly raise from the annual increase and, as menu prices increase -- which 90+% of operators are forced to do every time the minimum wage increases – those workers earn even more in tips because of higher check averages. 

• A recent CRA survey revealed the following verbatim from a local restaurant owner: “It has become almost impossible to survive. We closed one restaurant this year already. Our servers make $35-$45 an hour in tips. Hourly minimum wage brings that up to $50-$65 an hour....if they chose to work a 40-hour work week they are looking at upwards of $130k a year.” 

• In contrast, a non-tipped worker earning $23 per hour and working a 40-hour week at the same business would earn $47,840 per year.   

• Many restaurant owners report their margins are so razor thin (1 – 2% right now, compared to a typical 3 -5 % for the industry) that they don’t have wiggle room to pay the back-of-house a higher wage, even when they want to.  

Colorado restaurant operators have been asking for help lessening the wage disparity in the industry for years, and consistently report that they want to invest in their kitchen teams and their businesses but can’t because their tipped-wage labor costs are so high. 

In January 2025, the Colorado Restaurant Association surveyed its members, who reported that if there were a larger tip offset: 

• 63% of restaurants would invest in higher wages for non-tipped, back-of-house staff 

• 57% would invest in other areas of their business(es) 

• 56% would increase staff hours 

• 43% would stay in business longer 

• 25% would open a new location 

Federal laws prevent most cases of tip-sharing with the back-of-house staff, so those kitchen crews only see the annual non-tipped increase and don’t take home tips. That’s why their hourly earnings are so much lower than tipped workers ($39 - 42/hr on average for tipped workers, $19 - 23/hr on average for non-tipped workers).

No. This bill will NOT decrease the non-tipped wage in any part of Colorado, and wage increases will continue for all workers, as the non-tipped wage and menu prices rise with inflation. Tipped food-and-beverage workers will continue to earn great pay and their tips. 

Increasing the tip offset also helps owners hire more staff and add to staff hours, so tipped workers earn more and have more help. Right now, operators are cutting staff hours and even staff positions, like bussers. 

This bill DOES help back-of-house workers who have been left behind since 2019, when the minimum wage became tied to inflation, by giving restaurants the flexibility to invest in their kitchen crews and keep their doors open. 

When restaurants in Denver and other areas where there’s a higher minimum wage grow and thrive, businesses across the state benefit. This bill provides better pay for workers and opportunities for growth across the industry.

We will continue to see restaurant closures in areas of Colorado where local governments have increased the minimum wage passed the State’s rate, leaving businesses with no ability to offset this unintended consequence.