Denver’s minimum wage will increase from $15.87 per hour to $17.29 per hour starting Jan. 1. 

The city’s minimum wage is adjusted annually based on calculations made at the Department of Finance. The $1.42 increase translates to a raise of almost 9% according to City Auditor Timothy O’Brien, and is a response to rising prices throughout the city. 

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Denver’s minimum wage will be higher than the statewide wage – which increases from $12.65 per hour to $13.65 on Jan. 1 – and almost 2.5 times higher than the federal minimum wage of $7.25.

Denver’s cost of living is 12% higher than the national average according to RentCafe. 

“It is time to get the word out now,” O’Brien said. “It’s time for employers to update their payrolls and workers to watch their paychecks.”

The increase is the fourth since the city council approved a minimum wage ordinance in November of 2019. Since then, wages have gone up $6.19, close to 50%. The ordinance passed in 2019 requires the city to adjust wages based on the consumer price index (CPI).

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There are exceptions to the minimum wage requirement however. Employers enrolled in certified youth employment programs are only required to pay qualifying minors 15% of the city minimum wage, according to O’Brien’s office. 

Consumer prices have fluctuated greatly this year. As of November 2022, they are lower than they were in March 2022, but higher than November of 2019, according to data from the Bureau of Labor Statistics (BLS).

As of November 2022, the CPI is about 6.7% higher for all items less food and energy. Food prices increased almost 10% and energy prices increased by 4.1%, though this was tempered by a rapid decline in gasoline prices, according to the BLS. . 

“Denver’s wage ordinances protect vulnerable, marginalized, and undocumented workers,” Jeff Garcia, the DenverLlabor executive director, said. “In the past year, our team has been able to work successfully with community groups, consulates, employers, and labor groups to get the word out about worker rights and business requirements.”

In order to protect workers, O’Brien’s office provides workforce training, called “Wages Wednesdays,” posts educational videos on their YouTube channel and offers one-on-one support for employees as needed. There are also resources available for employers. 

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During 2022, the auditor’s office recovered $1.1 million for Denver workers. A total of 81 investigations were conducted, up from 20 in 2021, according to O’Brien. 

A new active enforcement program, which allows the office to conduct proactive investigations without prior complaints, was credited for this success. The $1.1 million in wages is the most ever recovered for workers in Denver.

“We’re here to help,” O’Brien said. “Both business managers and workers across the city can feel comfortable talking to my team about Denver’s wages.”