The outcome of this year’s Boulder City Council election could determine whether the next council increases the portion of tips employers can count toward meeting the city’s minimum wage, a change that could affect possibly thousands of servers, bartenders and other hospitality employees.
In 2024, the Boulder City Council voted unanimously to set the city’s minimum wage at $15.57 for this year, about 8% above the state minimum wage. The decision marked a compromise among councilmembers with differing views on how quickly wages should rise.
Under state law, employers can currently count up to $3.02 of a worker’s tips toward meeting the minimum wage. But beginning Jan. 1, 2026, a new Colorado law will allow Boulder to increase that “tip credit,” meaning employers could pay a lower base wage as long as tips bring total earnings up to the city minimum.
Raising the tip credit does not lower the legal minimum wage, but it can reduce total pay for workers who already earn above that threshold with tips. Opponents, such as labor groups, call it a pay cut. Supporters view a higher tip credit as a lifeline for businesses struggling with rising labor costs.
Whether the tip credit changes, or stays the same, and by how much will be up to city council to decide. Several of the 11 candidates running for the four open seats told Boulder Reporting Lab they want to have that discussion. And ahead of the Nov. 4 election, it’s one issue where the divisions are clear.
Jump to the candidates’ full responses below.
Councilmembers Mark Wallach and Matt Benjamin, along with Jenny Robbins and Rob Kaplan, stated their openness to revising the tip credit.
“Raising Boulder’s tip credit could help restaurants stay viable as the city’s minimum wage continues to rise,” Benjamin said. “A thoughtful increase to the tip credit helps restaurants absorb wage hikes, keeps prices from climbing too fast for customers, and protects jobs — all while maintaining fair pay for workers. It’s a pragmatic balance between equity and sustainability.”
Other candidates have taken the opposite view, arguing that reducing base pay could widen the gap between tipped and non-tipped workers. Those skeptical of increasing the tip credit include Mayor Pro Tem Lauren Folkerts, Councilmember Nicole Speer, Rachel Rose Isaacson and Max Lord.
A 2024 study commissioned by local municipalities found that minimum-wage workers in the region tend to be younger, female and disproportionately Latino, Black and Indigenous. Jobs in retail, food service, childcare, agriculture, arts and recreation were among the lowest paying in Boulder County. The report did not estimate how many local workers earn minimum wage, but about 10% of the county’s workforce made less than $15 an hour.
“I do not support changing the tip credit or the schedule of increases until we have data on the impact of the 2024 ordinance, and time and resources to reopen a broader discussion about the local minimum wage,” Councilmember Nicole Speer said.
Candidate Montserrat Palacios did not respond to questions in time for publication.
See where all the candidates stand on increasing the tip credit, in their words.
Matt Benjamin:
“As one of the councilmembers who led the compromise on Boulder’s minimum wage, I take
seriously both sides of this issue—ensuring workers earn better wages while helping our small
businesses weather challenging economic conditions.
Raising Boulder’s tip credit could help restaurants stay viable as the city’s minimum wage
continues to rise. For many local restaurants, labor makes up the largest share of costs—often
40–50% of expenses—and margins are already razor-thin. A higher tip credit would give
restaurants more flexibility to balance payroll without cutting staff, hours, or benefits, while
ensuring tipped workers continue earning well above the base wage through tips.
A thoughtful increase to the tip credit helps restaurants absorb wage hikes, keeps prices from
climbing too fast for customers, and protects jobs—all while maintaining fair pay for workers.
It’s a pragmatic balance between equity and sustainability. It’s important to note that a closed
restaurant pays $0/hr in wages to workers. Protecting these good-paying jobs is essential for
workers, businesses, and the overall economic vitality of the City.”
Nicole Speer:
“Boulder’s local minimum wage ordinance was the result of a three-year community engagement process. It was one of the most inclusive wage conversations in the state. We reached a compromise that Boulder City’s Council unanimously supported, phased in the increase over three years, and committed to assess impacts on workers, business owners, and the local economy in a few years when we would have some data to inform our assessment. I stand by that thorough process and the transparent, collaborative ordinance that emerged from it.
For this reason, I do not support changing the tip credit or the schedule of increases until we have data on the impact of the 2024 ordinance, and time and resources to reopen a broader discussion about the local minimum wage. Workers and businesses alike deserve predictability. The engagement and negotiation that led to the 2024 ordinance included a thorough discussion of the tip credit and its impacts on business owners and workers. We accounted for the inflexibility of the $3.02 tip credit when crafting the ordinance; that’s why Boulder’s local minimum wage is the lowest and our rate of increase the most conservative in the state.
As we consider solutions to the challenges facing our small businesses, including restaurants, we must ensure we’re solving the right problem. Denver has a significantly higher minimum wage than Boulder, with the same $3.02 tip credit. If the tip credit were to blame for the exodus of Boulder’s restaurants, would we be seeing restaurant owners choosing to close restaurants in Boulder while their other locations in Denver thrive? I also sometimes hear that homelessness and crime are driving away business, but Denver’s rates are higher than ours. Boulder’s independent restaurants seem to be uniquely disadvantaged right now. It’s critical to understand why, or we risk wasting time that we don’t have solving the wrong problem.”
Mark Wallach:
“Everything in relation to the minimum wage and the tip credit is an act of balancing the need to keep our restaurants viable and open against the interests of providing workers with a decent wage. It is not, and has never been, one or the other. Therefore, I am prepared to consider a reasonable adjustment to the tip credit to assist the restaurant owners in future years, depending upon the impact our increases in minimum wage have upon the restaurant community.”
Lauren Folkerts:
“I don’t support increasing the tip credit, because doing so would widen the pay gap between tipped and non-tipped workers and disproportionately impact women and workers of color, two groups that are overrepresented in tipped positions. A Regional Minimum Wage Economic Analysis commissioned by the city of Boulder and neighboring communities found that raising the local minimum wage would substantially increase earnings for low-wage workers without causing significant job losses, suggesting that maintaining a strong base wage benefits both workers and the broader economy.
I’d like to see Boulder continuing to move forward with steady, predictable wage increases until our minimum wage rate matches Denver’s. If adjusting the tip credit slightly is the only way to preserve that upward trajectory, I would be open to it as a strategic compromise.
My long-term goal remains the same: a fair wage structure that ensures all workers, tipped or not, can afford to live where they work and share in the prosperity of our community. When working people earn enough to meet their basic needs, they spend more locally, strengthen small businesses, and contribute to a more stable, resilient local economy that benefits everyone.”
Jennifer Robins:
“I do support increasing the tip credit as the minimum wage rises. I waited tables for years when the wage was $3 an hour, so I know how important tips are to workers and I also understand how tight margins are for restaurants and cafés.
Our goal should be to keep small businesses viable without hurting the people who rely on tips to make a living. Any changes need to be gradual, data-driven, and shaped with input from both employers and employees so Boulder’s service industry stays strong and fair.”
Rachel Rose Isaacson:
“I would not support increasing the local tip credit at this time. Many service industry workers in Boulder already work three jobs and still struggle with housing and cost-of-living pressures, and reducing their base pay would only widen that gap. As the city continues to increase the minimum wage, we need to ensure that those working in tipped positions also benefit from predictable and livable earnings, not just variable income tied to customer generosity. It’s also important to note the negative impacts we’ve seen from both consumer and employee backlash toward restaurants that supported HB 25-1208 (often referred to as the “cut tipped wages” bill).”
Rob Kaplan:
“When Colorado set the $3.02 tip credit with Amendment 42 in 2006, the base minimum wage that took effect the following year was $6.85 per hour. That was a 44% credit. As wages have risen, that fixed $3.02 has fallen to 19% percentage of Boulder’s minimum wage of $15.57, which strains many restaurants while not meaningfully changing worker protections. I would support increasing the percentage of the offset, and I would work with my fellow council members to ensure workers always receive the full minimum wage when tips do not cover the difference, with clear reporting so we can verify outcomes.”
Aaron Stone:
“
I have some concerns that the tipped credit could be abused if tips are not tracked fairly or transparently by companies.
I believe all of us can support a living wage. However, we also need to balance this with the high operational costs that businesses currently pay.
Personally I’d like to see the city start charging a vacancy fee on commercial property like they are proposing for empty real estate.
While I’d need to look at implementation details to make sure that landlords who are trying to charge fair rents and keep their units occupied are not unfairly penalized
We would like to make sure that landlords who are intentionally keeping units empty in order to keep rents high across the board are not allowed to get away with it.
It’s not right that a few bad actors are dictating the health of our business community.”
Max Lord:
“There are some businesses within the state that may benefit from this new legislation, but
particularly in Boulder, I see no reason to allow businesses to take advantage of this credit.
Many tipped workers in the city of Boulder already make less than their counterparts in our
neighboring cities, despite Boulder being one of the most expensive cities to live in in the area.”
Rob Smoke:
“I think it’s important to support a “livable wage’– the “minimum wage discussion” skirts deeper questions about choices people often make…. people who are simply attempting to survive economic circumstances that are increasingly tumultuous and unpredictable.
What probably prevents us from having a more intelligent discussion, is really just sort of collectivized false narrative.. (A mindset in which people agree to a false narrative about the status of people based upon material wealth.
In any case, I greatly support an absolute exemption for tipped wages. Anything other than that constitutes a violation or infringement of constitutional rights. Tips represent a form of speech, and as such, ultimately be excluded from bureaucratic reviews.”
With four council seats up for election, the outcome could determine whether the next council takes up the issue. If all candidates who support revisiting the tip credit are elected, it would take only one additional vote to pass an increase.
Political groups have already weighed in. Safer Boulder has accused Folkerts and Speer of “dismissing the voices of local business owners.” Engage Boulder, led by local tech entrepreneur Dan Caruso, also singled them out, quoting a Nextdoor user in its newsletter who claimed they are aligned with the Boulder Democratic Socialists of America, which the post said “opposes capitalism.”
Meanwhile, the Boulder Area Labor Council, CLC, AFL-CIO has endorsed Folkerts, Speer, Isaacson and Lord. The union opposes increasing the tip credit and wants the city to take up other labor-related policies. These include stronger wage theft protections, better contracting standards and responses to worker displacement tied to artificial intelligence.
“I think the stakes are very high for this election,” Alejandra Beatty, president of the Boulder Area Labor Council, CLC, AFL-CIO, said. “There’s more than just minimum wage that we want to start working on. We want to start working on better wage standards and better labor policies that the city could really help us with.”
Boulder’s minimum wage is scheduled to rise 8% in 2026 to $16.82 and 8% in 2027 to $18.17, with future adjustments tied to inflation. Most candidates indicated they support that schedule but would be open to revisiting it as conditions change.
“Before making changes, I’d want to review updated data on cost of living and business impacts to make sure we’re keeping the right balance keeping wages fair while ensuring our local businesses can stay open and keep people employed,” Robins said.
Candidates on both sides said they want Boulder’s minimum wage to eventually match those in Boulder County or Denver, both of which are currently higher. The county recently held a public hearing on whether to slow down increases to its minimum wage, which is set to rise from $16.57 today to $25 in 2030.
“I’d like to see Boulder continuing to move forward with steady, predictable wage increases until our minimum wage rate matches Denver’s,” Mayor Pro Tem Folkerts said. “If adjusting the tip credit slightly is the only way to preserve that upward trajectory, I would be open to it as a strategic compromise.”
It’s worth reading this New Yorker article for some more background on this topic. It mentioned Rep. Amabile.
https://www.newyorker.com/magazine/2025/08/04/no-tax-on-tips-is-an-industry-plant
On a related issue, I’d like to see the city council clarify whether restaurants that charge a minimum gratuity can add a gratuity on the restaurant sales tax (8.845%). At the Southern Sun, the host seated us and said that our group would get a 20% gratuity added to our bill. When the bill came, the gratuity was 22%. The food bill was about $100, plus $8.85 tax, plus 20% or about $22, for a total of about $132. I crossed out the gratuity and wrote in $100 + $8.85 + $20 = about $130. The server said that the manager had trained them to add a gratuity on the tax. I’ve since checked restaurants where orders are handled on a tablet, these restaurants don’t add a tip on the taxes.
I am a little confused by your post. If your outing was recent the current food service sales tax in Boulder is 9.195%.
https://bouldercolorado.gov/tax-rates-types#:~:text=Boulder's%20Sales%20Tax%20Division%20collects%20sales%2C%20use%2C,use%2C%20accommodations%2C%20admissions%20and%20food%20service%20taxes.
When worrying about the impact of wage increases on restaurants in Boulder keep one thing in mind: The number of the top tier operations that are owned by out of towners–many large national corporations. Maybe staff wages should be tied to the bottom line of the establishment: A defined percent of before tax profits go to servers and kitchen staff other then top chefs.osh
Google AI said that Boulder’s restaurant tax is 8.85%. It’s confused, not you. 🙂