Some Denver workers will be starting the new year with a pay raise as the city’s minimum wage rises to $19.29, up from $18.81.

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

Each year, the city’s Department of Finance adjusts the city’s minimum wage based on the Consumer Price Index.

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 lower than the 2.84% for 2025 and the 5.8% for 2024.

This annual adjustment aims to help local wages keep pace with the cost of living and to protect the city’s lowest-wage workers from inflation, according to city finance officials.

Colorado state law requires that any local minimum wage changes take effect on Jan. 1, the same date as the statewide minimum wage adjustment.

The Denver Labor Division enforces the city’s local minimum wage.

Each year, the offices of the auditor, City Council, and the mayor collaborate to educate and inform employers about the local minimum wage for the upcoming year, helping them plan and prepare.

“Denver leads the way with some of the strongest wage protections in the United States,” Denver Auditor Timothy 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 in a statement earlier this year. “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.

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

Failure to pay Denver’s minimum wage is still one of the most common forms of wage theft.

Industries at higher risk of underpayments include hospitality — such as restaurants, bars, and strip clubs — cleaning and maintenance, accommodations, personal care and laundry services, retail, and gig app companies.

If workers believe they are not being paid Denver’s minimum wage, they are encouraged to contact Denver Labor by filling out an online complaint form, emailing WageComplaints@DenverGov.org, or calling (720) 913-WAGE (9243).

Denver Labor accepts anonymous complaints and does not ask about immigration status.