Some hourly Denver workers can expect a pay bump beginning on Jan. 1, as the city’s local minimum wage rate will increase to $19.29 from $18.81, the city’s Department of Finance announced on Thursday.

For tipped food and beverage workers, the minimum wage will jump to $16.27 per hour, up from $15.79 per hour in 2025, provided they earn at least $3.02 in actual tips.

Denver’s minimum wage is determined by a local ordinance enacted in 2019, which mandates an annual increase based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Denver-Aurora-Lakewood area.

The CPI-W used for the 2026 wage adjustment was 2.56%, slightly less than that of 2.84% for 2025 and 5.8% for 2024.

Denver has one of the highest minimum wage rates in the nation and is significantly higher than the state’s minimum wage, which currently sits at $14.81.

While the additional cash will benefit workers, local business groups said it impacts their bottom line.

“With businesses already facing inflation, regulation and a slow downtown recovery, raising Denver’s minimum wage adds pressure, especially on restaurants, nearly 200 of which closed last year,” Leslie Oliver of the Denver Metro Chamber of Commerce told The Denver Gazette. “Employers want to invest in their people, and policy should reflect economic realities.”

Colorado state law requires that any local minimum wage changes take effect on Jan. 1, the same date adjustments are made to the statewide minimum wage.

“Denver leads the way with some of the strongest wage protections in the United States,” O’Brien said in a news release. “We are committed to protecting the most vulnerable workers and ensuring both businesses and employees know the law.”

The city’s annual minimum wage increase can often lead to underpayment if local employers are not aware of the mandatory adjustment, officials said. 

“Employers who are unsure whether or not to pay Denver’s local minimum wage due to the workplace’s mailing address should not make the wrong assumption,” O’Brien said. “We encourage them to use the regional address finder on our website to check if work was performed within the boundaries of the City and County of Denver.”

The Denver City Council passed what’s called the “Civil Wage Theft” ordinance on Jan. 9, 2023, creating more substantial penalties and vesting responsibility for implementation and enforcement with the Denver Auditor’s Office.

Before Denver implemented the ordinance, victims of wage theft who suffered losses of less than $2,000 had little path for recourse or restitution, the legislation’s backers said. 

A review of 2024 minimum wage and civil wage theft cases published by Denver Labor revealed service industry workers, including restaurant servers, bartenders and salon workers, were among those most likely to be victims.

In one of its high-dollar cases, Denver Labor recovered $120,867 for 16 employees at One Connection Nails after discovering the company was paying strictly commissions and tips and failing to track employee hours.