Colorado Localities’ Minimum Wage Tip Credits May Exceed State’s

June 5, 2025, 3:31 PM UTC

Colorado is allowing localities with minimum wage laws to establish tip credits that are larger than the state’s $3.02 hourly rate, under a bill that will go into effect July 1.

Colorado has allowed localities to establish their own local minimum wages since 2019, but local ordinances have needed to adopt the state’s $3.02 hourly tip credit, which is codified in the state constitution. Boulder, Boulder County, Denver, and Edgewater have enacted minimum wage laws, and they each incorporate the $3.02 tip credit.

HB 1208 modifies this requirement starting Jan. 1, 2026, for localities with minimum ...

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