Boulder City Council’s Intergovernmental Affairs (IGA) Committee discussed a state bill on March 12 that would lower the tipped minimum wage in Boulder but stopped short of taking a definitive position, citing divided opinions among councilmembers.
“Differing views on council prevented us from adopting a specific position,” Carl Castillo, the city’s chief policy advisor, told Boulder Reporting Lab.
House Bill 1208 is fueling debate among local lawmakers, restaurant owners and labor advocates. The bill would lower Boulder’s tipped wage from $12.55 to the state rate of $11.79 while still requiring total earnings, including tips, to meet the local minimum wage. Supporters, including restaurant owners and business groups, argue the change is necessary to prevent closures and layoffs as rising labor costs strain the industry. Opponents, including labor groups and some lawmakers, call it a pay cut for workers, with estimates suggesting affected employees could lose an average of $8,320 per year.
Read: Colorado bill that would cut tipped wages in Boulder sparks fierce debate
Instead of taking a position, the committee outlined two key requests for the Colorado General Assembly:
- Ensure cities like Boulder can raise their minimum wage without placing “unnecessary financial burdens” on restaurants and other businesses with tipped employees.
- Prevent local governments from being forced to reduce their minimum wage.
To achieve these goals, the committee suggested two possible approaches: either allowing local governments to set their own tipped minimum wage or changing how the state calculates it. Currently, the tipped wage is always set at $3.02 less than the regular minimum wage. The proposed change would instead calculate it as a percentage of the regular minimum wage rather than a fixed dollar amount.
The city’s suggestions align with two competing amendments to HB 1208 currently in the state legislature. One would give local governments full control over tipped wages, while the other would set tipped wages at 75% of the regular minimum wage by 2028. By declining to endorse one approach over the other, the city has effectively remained neutral in a debate that has split Democrats.
Labor unions and worker advocacy groups criticized the city’s decision to discuss the issue in a committee meeting rather than a full city council session, calling the move “painfully undemocratic.” In a statement, they urged the city to hold a formal meeting with labor stakeholders and explore alternative policies to support restaurants, such as curbing high delivery app fees and addressing supply chain costs.
Meanwhile, state legislators continue to refine the bill. A third amendment under consideration would adjust the tipped wage gap from $3.02 to $3.58 by 2026 — a less drastic change than the original proposal but not the full local control some of Boulder’s councilmembers are looking for.
The House Finance Committee is set to vote on the bill and its amendments Friday, March 14, in a meeting that will not include public testimony. The vote was originally scheduled for Monday but was moved up, drawing criticism from labor advocates and some Boulder councilmembers, who argue the last-minute changes leave little time for worker input.
Mayor Pro Tem Lauren Folkerts, a member of the IGA Committee, said she doesn’t expect the city’s stance to change, regardless of the new amendments.
“For the time being, we’re just saying that the city wants more control over the tipped offset,” she said, referring to the gap between tipped wages and the minimum wage. “We’re fairly divided on the specifics of how to do that, so we can’t really provide any more feedback.”
