The local minimum wage in the City and County of Denver will increase by fifty-two cents, rising from $18.29 to $18.81, starting January 1, 2025. Tipped food and beverage workers will be entitled to a minimum wage of $15.79 per hour, provided they earn at least $3.02 in tips. Denver’s local ordinance requires yearly adjustments to ensure wages keep up with the city’s cost of living. The adjustment for 2025 is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W for the Denver-Aurora-Lakewood area was 2.84% for 2025, which is lower than the 5.8% for 2024 and 8.94% for 2023.

“This raise puts money in the pockets of hard working Denverites and makes us an even more attractive job market for employers and employees alike,” said Mayor Mike Johnston.

The scheduled increase comes from the city’s local minimum wage ordinance, which was approved unanimously by the Denver City Council in November 2019. The ordinance has helped stabilize minimum wage workers and their families who keep our city running but who might fall behind due to the rising cost of living and high inflation.

The Denver Labor Division of the Office of Denver Auditor Timothy M. O’Brien, CPA enforces Denver’s local minimum wage. Each year, the Auditor, City Council, and Mayor offices collaborate to educate and spread the word about the local minimum wage going into effect for the coming year to help employers plan and prepare.

“We all must work together to counter the societal harms and injustice of wage theft. Denver’s wage protections are some of the strongest in the United States, but it remains up to each of us to get the word out that we are here to help,” Denver Auditor Timothy M. O’Brien, CPA, said.

More information about Denver’s minimum wage is at DenverWages.org.

Considerations for Employers

Consistent with state law, Denver’s local minimum wage allows a reduced wage to be paid to tipped workers in the food and beverage sector only. Employers in the food and beverage industry may claim up to $3.02 per hour for a tip credit if they have documentation showing their employee received at least that amount in tips. The minimum wage would be $15.79 per hour if the full tip credit is applied. However, the tip credit does not apply to workers in other industries, even if they sometimes receive tips.

Employers with locations near the City and County of Denver border: “Employers should not rely on their mailing address to determine whether or not to pay Denver’s local minimum wage,” Auditor O’Brien said. “We recommend using our regional address finder on our website to check if work was performed within the boundaries of the City and County of Denver.”

‍