The Boulder City Council is currently deliberating on a proposal that would permit local restaurants to implement a tip offset, enabling them to pay tipped employees less than the city’s standard minimum wage. This consideration comes in response to rising labor costs and ongoing financial challenges faced by the restaurant industry.
Under a 2025 state law, municipalities with minimum wages exceeding the state level can establish their own tip offsets. Boulder, along with Denver and Edgewater, has a higher minimum wage than the state. To date, only Edgewater has adopted a larger tip offset.
Proponents of the measure, including Boulder Chamber President John Tayer, argue that without such adjustments, more restaurants may be forced to close. However, concerns have been raised about the potential impact on workers, as many tipped employees in Boulder County still earn less than a living wage.
The recent resignation of Council Member Mark Wallach, who had advocated for slower wage increases, adds another layer of complexity to the council’s decision-making process. If the ordinance passes the second reading, it will proceed to a third reading for formal adoption in August.