A Bill for an Act
Page 1, Line 101Concerning the tip offset associated with a local
Page 1, Line 102government's minimum wage, and, in connection
Page 1, Line 103therewith, requiring a local government that enacts
Page 1, Line 104a local minimum wage that exceeds the state minimum
Page 1, Line 105wage to satisfy certain requirements in determining
Page 1, Line 106the amount of the tip offset associated with the local
Page 1, Line 107government's minimum wage.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Current law allows a local government to establish local minimum wages in excess of the statewide minimum wage established in the state constitution. A local government that enacts a minimum wage must provide a tip offset for tipped employees in an amount equal to the tip offset amount described in the state constitution, which is $3.02.
The bill requires a local government that has enacted a code or an ordinance imposing a minimum wage that exceeds the state minimum wage to enact another code or ordinance on or before September 1, 2025, that:
- Imposes a tip offset for food and beverage employees in an amount that equals the amount by which the local minimum wage exceeds the state minimum wage, plus $3.02; and
- Takes effect on or before October 1, 2025.
- Decreases the amount of the tip offset to an amount less than $3.02;
- Decreases the amount of the tip offset by more than 50 cents in any 12-month period; or
- Increases the amount of the tip offset by an amount that would allow an employee to be paid a wage that is less than the state minimum wage, minus $3.02.
After September 1, 2025, and until October 1, 2026, a local government that enacts a code or an ordinance that imposes a minimum wage in an amount that exceeds the amount of the state minimum wage must also enact a code or an ordinance that imposes a tip offset in an amount that equals the amount by which the local minimum wage exceeds the state minimum wage, plus $3.02.
On and after October 1, 2026, a local government may enact a code or an ordinance that increases or decreases the amount of the local tip offset; except that a local government may not enact a code or an ordinance that:
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 8-6-101, amend (3)(a)(I); and add (3.5) as follows:
Page 2, Line 38-6-101. Legislative declaration - minimum wage of workers
Page 2, Line 4- authority of a local government to enact minimum wage laws - tip
Page 2, Line 5offsets - enforcement - report - severability - definition.
Page 2, Line 6(3) (a) (I) (A) Notwithstanding any other provision of law, a local
Page 3, Line 1government may enact through its governing body or, when available,
Page 3, Line 2through its initiative or referendum powers, a law establishing minimum
Page 3, Line 3wages for individuals performing, or expected to perform, four or more
Page 3, Line 4hours of work for an employer in
anyPage 3, Line 5boundaries of the local government's jurisdiction. Minimum wages
Page 3, Line 6established in accordance with this section may exceed the statewide
Page 3, Line 7minimum wage established in accordance with section 15 of article XVIII
Page 3, Line 8of the state constitution, any other minimum wage established by state
Page 3, Line 9law, or any minimum wage established by federal law; except that a local
Page 3, Line 10government that enacts a minimum wage in accordance with this
Page 3, Line 11subsection (3) shall provide a tip offset for employees of
anyPage 3, Line 12or enterprise that prepares and offers for sale food or beverages for
Page 3, Line 13consumption either on or off the premises.
equal to the tip offset providedPage 3, Line 14
in section 15 of article XVIII of the state constitution.Page 3, Line 15applies only to employees who regularly receive tips and only when a tip
Page 3, Line 16offset is permitted by state law. A local government shall determine
Page 3, Line 17the amount of the tip offset in accordance with subsection (3.5) of this section.
Page 3, Line 18(B) A local government shall not include in its minimum wage
Page 3, Line 19law time spent in the local government's jurisdiction by an employee
Page 3, Line 20solely for the purpose of traveling through the local government's
Page 3, Line 21jurisdiction from a point of origin outside of the local government's
Page 3, Line 22boundaries to a destination outside of the local government's boundaries,
Page 3, Line 23with no employment-related or commercial stops in the local
Page 3, Line 24government's jurisdiction, except for refueling or the employee's personal meals or errands.
Page 3, Line 25(3.5) (a) On or before September 1, 2025, a local
Page 4, Line 1government that has enacted a code or an ordinance that
Page 4, Line 2imposes a minimum wage in an amount that exceeds the amount of
Page 4, Line 3the state minimum wage shall enact another code or ordinance that:
Page 4, Line 4(I) Imposes a tip offset for employees of a business or
Page 4, Line 5enterprise that prepares and offers for sale food or beverages
Page 4, Line 6for consumption either on or off the premises, which tip offset is
Page 4, Line 7in an amount that equals the amount by which the local
Page 4, Line 8minimum wage exceeds the state minimum wage, plus the amount
Page 4, Line 9of the tip offset described in section 15 of article XVIII of the state constitution; and
Page 4, Line 10(II) Takes effect on or before October 1, 2025.
Page 4, Line 11(b) After September 1, 2025, and until October 1, 2026, a
Page 4, Line 12local government that enacts a code or an ordinance that
Page 4, Line 13imposes a minimum wage in an amount that exceeds the amount of
Page 4, Line 14the state minimum wage shall also enact a code or an ordinance
Page 4, Line 15that satisfies the requirement of subsection (3.5)(a)(I) of this section.
Page 4, Line 16(c) On and after October 1, 2026, a local government may
Page 4, Line 17enact a code or an ordinance that increases or decreases the
Page 4, Line 18amount of the tip offset described in subsections (3) and (3.5)(a)(I)
Page 4, Line 19of this section; except that a local government shall not enact a code or an ordinance that:
Page 4, Line 20(I) Decreases the amount of the tip offset to an amount
Page 4, Line 21that is less than the amount described in section 15 of article XVIII of the state constitution;
Page 4, Line 22(II) Decreases the amount of the tip offset by more than fifty cents in any twelve-month period; or
Page 5, Line 1(III) Increases the amount of the tip offset by an amount
Page 5, Line 2that would allow an employee to be paid a wage that is less than
Page 5, Line 3the state minimum wage, as adjusted by the tip offset described in section 15 of article XVIII of the state constitution.
Page 5, Line 4SECTION 2. Effective date. This act takes effect July 1, 2025.
Page 5, Line 5SECTION 3. Safety clause. The general assembly finds,
Page 5, Line 6determines, and declares that this act is necessary for the immediate
Page 5, Line 7preservation of the public peace, health, or safety or for appropriations for
Page 5, Line 8the support and maintenance of the departments of the state and state institutions.