Denver’s next citywide minimum wage increase is scheduled to take effect on Jan. 1, raising the minimum wage from $14.77 to $15.87 per hour.

This will be the third time the city’s minimum wage has increased since the City Council passed its local minimum wage ordinance in November 2019. When the ordinance passed, the city’s minimum wage was $11.10.

“At a time when workers are doing everything they can to get by, this raise is a little bit of extra relief to help them support themselves and their families,” Mayor Michael Hancock said. “Our economy needs to work for everyone, and for our working families, this pay raise is a big deal, especially during our recovery from the pandemic.”

The cost of living in Denver has continued to rise rapidly and unemployment rates have increased during the COVID-19 pandemic. According to the city, tens of thousands of workers will get a boost in pay from the minimum wage increase.

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The 2022 increase will be the last of the city’s pre-scheduled steeper wage increases. Under the ordinance, Denver’s minimum wage will now increase more gradually on Jan. 1 of each year according to the Consumer Price Index.

“Because Denver’s wage has been rising since 2020 at pre-planned intervals, Denver employers were better positioned to meet today’s worker wage demand than communities and employers who came into this economy at the state minimum wage floor,” said Councilwoman Robin Kniech, who co-sponsored the ordinance.

Kniech is asking the community to spread the word on the minimum wage increase. According to Denver Labor, most non-compliance reports for the local minimum wage are made during the first part of the new year after a new increase has gone into effect.

Employers are asked to use the city’s regional address finder to determine if their business is within Denver. The minimum wage allows reduced wages for tipped workers in the food and beverage sector. Employers can claim up to $3.02 per hour for a tip credit, making the minimum wage $12.85.

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“We encourage employers to plan ahead by programming their payroll systems now, ahead of Jan. 1, to ensure they are compliant at the start of every new year,” said Denver Auditor Timothy O’Brien.

Denver employers can go to DenverWages.org to learn more about preparing for the increase. Employees who are not earning the accurate minimum wage can file a complaint with Denver Labor or pursue a private, civil legal action.