City of Boulder invites community feedback on potential changes to tip offset

Input is being collected through an online questionnaire now through June 2, 2026.

In 2025, the Colorado General Assembly passed House Bill 25-1208, granting local governments with minimum wages higher than the state's the authority to modify the tip offset. City Council is exploring whether to increase the tip offset and, if so, by how much. Community input will help Council better understand the needs and perspectives of workers in the food and beverage service industry, businesses that employ them, and the broader community.

The tip offset is the amount an employer may subtract from a tipped worker's hourly wage because that worker also earns tips. In Boulder, the tip offset applies only to food and beverage establishments. By law, tipped workers must still earn at least the full local minimum wage; if tips do not bring earnings up to that level, employers must make up the difference.

Boulder's minimum wage will increase by 8% in 2027 under City Council action adopted in 2024 and will adjust each year beginning in 2028 based on the prior year's Consumer Price Index for the Denver-Aurora-Lakewood region. The tip offset is currently set at $3.02, the statewide amount, and will not change over time unless Council adopts a new tip offset. With new state authority in place, City Council has identified exploring a potential adjustment to the tip offset as a priority for the 2026 term.

The city is seeking feedback on a range of options for modifying the tip offset, from no change (keeping the tip offset at $3.02) to a moderate increase to a more significant increase. Council is not considering an increase to the tip offset that would lower the base wage for tipped workers in 2027.

Community members are encouraged to learn more and share their perspectives, especially workers and business owners who may be directly affected.

Take the questionnaire and learn more: bldr.fyi/tipoffset.