Key Takeaways:
- The minimum wage in Colorado will increase on January 1, with varying changes for tipped workers depending on location.
- The city of Edgewater will be the first in the state to take advantage of changes to state law, giving employers greater control over how tipped workers are paid.
- The tipped minimum wage in Edgewater will remain at $13.50 an hour, while the hourly minimum wage will increase to $18.17.
- Denver will increase both its hourly and tipped minimum wages in 2026, with no plans to change its current model.
- The decision to change the tipped minimum wage has sparked debate, with some arguing it will help restaurants and others claiming it will harm workers.
Introduction to the Minimum Wage Increase
The start of the new year will bring a slight increase in the minimum wage for Coloradans, with some changes to how tipped workers are paid depending on their location. In the city of Edgewater, a new law will give employers greater control over the payment of tipped workers, making it the first city in the state to take advantage of this change. This decision has been met with both support and opposition, with some arguing that it will help independent restaurants and others claiming that it will harm workers. At the center of this debate is Niya Gingerich, the owner of Edgewater Inn Pizza, who has been a vocal advocate for the change.
The Impact on Edgewater Inn Pizza
Edgewater Inn Pizza has been a staple in the small town of Edgewater for decades, and Niya Gingerich and her husband, Grant, have been at the helm for the past three years. Gingerich has a personal connection to the restaurant, having grown up in the neighborhood and frequenting the establishment as a child. However, she has found that labor costs have been a significant challenge for the independent restaurant community. In an effort to address this issue, Gingerich pushed the Edgewater City Council to take advantage of a new state law that allows local governments to raise their hourly minimum wage without also raising the tipped minimum wage. This law, which was urged by Colorado Gov. Jared Polis, aims to ease labor costs for restaurants and help them stay afloat.
The New Law and Its Implications
The new law will go into effect in 2026, at which point Edgewater’s hourly minimum wage will increase from $16.52 to $18.17. However, the tipped minimum wage will remain at $13.50 an hour. If employees do not earn enough in tips to reach the full $18.17, employers will be required to make up the difference, known as the "tip credit." Gingerich argues that this change is not a minimum wage issue, but rather a tip credit issue, and that it will help protect both tipped and non-tipped employees. She believes that the minimum wage is essential for protecting all employees, regardless of whether they receive tips or not.
Reactions to the New Law
Not everyone agrees with the new law, and some have expressed opposition to the change. In Denver, for example, both the hourly and tipped minimum wages will increase in 2026, with no plans to change the current model. A spokesperson for the Denver City Council stated that there has been no legislation or formal discussion to change the current structure. Gov. Polis weighed in on the issue, stating that if local communities like Denver do not use the law to address the issue of labor costs, the state may need to intervene. He emphasized the importance of finding a solution to the problem, citing the potential consequences for workers and restaurants if nothing is done.
Conclusion and Future Implications
The decision to change the tipped minimum wage in Edgewater has sparked a heated debate, with some arguing that it will help restaurants and others claiming that it will harm workers. As the new law goes into effect in 2026, it will be important to monitor its impact and assess whether it achieves its intended goals. The issue of labor costs and minimum wage is complex, and there is no easy solution. However, by exploring different approaches and engaging in open and honest discussions, it may be possible to find a solution that works for everyone involved. Ultimately, the goal should be to create a fair and sustainable system that protects the rights of workers while also allowing businesses to thrive.