Colorado's tipped wage bill punts decision to locals
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Illustration: Aïda Amer/Axios
The nasty fight at the Colorado Capitol over how much to pay tipped restaurant workers ended in a standoff this week.
The big picture: Gov. Jared Polis signed the Restaurant Relief Act into Colorado law on Tuesday, with backing from the Colorado Restaurant Association and other major industry organizations.
Why it matters: The result is a victory for the opposition, which mounted an aggressive campaign against the legislation, though it gives cash-pinched restaurant owners another chance to make their case at the local level.
Threat level: The state's restaurant industry faces a crisis, with as many as 200 closing statewide last year — a majority of which operated in Denver — partially prompting the legislative proposal.
Catch up quick: The House bill pitted the restaurant industry against its own workers in a battle over whether to increase the amount deducted from the base pay of an employee who receives tips.
- Restaurants considered the measure a potential lifesaver at a time when many have gone out of business.
- But labor unions and left-leaning advocates opposed the potential reduction in workers' pay, given the high cost of living in the Denver metro.
How it works: State lawmakers neutered the bill and punted the decision about adjusting the $3.02 tip credit to local governments like Denver and Boulder, where the minimum wage exceeds the state's rate of $14.81.
What they're saying: Polis, in a statement, said the law will ensure "restaurants across Colorado can thrive," while calling on cities with higher minimum wages than the state to take action to address the tip credit.
- "This is a huge accomplishment for independent restaurants," Colorado Restaurant Association president and CEO Sonia Riggs said in a statement.
What's next: Don't expect local governments to rush to the issue anytime soon.
- Denver City Council's progressive members lobbied against the measure, and officials in Boulder are split on how to proceed.