Denver’s minimum wage increases to $18.29 from $17.29 on January 1st
Denver's minimum wage is set to increase to $18.29 per hour, up from $17.29, starting on January 1st.
This move has sparked concerns among local restaurants and businesses struggling to recover from the economic impact of the pandemic.
Under the new ordinance, tipped food and beverage workers will receive a minimum of $15.27 per hour, provided they earn at least $3.02 in tips. The city justifies these annual adjustments based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, claiming it ensures wages keep up with Denver's cost of living.
Denver Mayor Mike Johnston claims that this increase will benefit workers and help maintain a competitive job market in the city. However, critics argue that this decision overlooks the financial challenges faced by local restaurants and businesses.
The Denver City Council unanimously passed the local minimum wage ordinance in 2019, arguing that it would bring stability to workers and their families struggling to keep up with rising living costs and inflation. While the intention perhaps is noble, the reality is that these mandated wage increases place an undue burden on small businesses already grappling with limited resources and reduced customer demand.
When compared to other cities across the United States, Denver's new local minimum wage is relatively high.
For instance, Seattle currently has a minimum wage of $18.69, while workers in West Hollywood earn a minimum of $19.08. San Francisco's local minimum wage stands at $18.07, while New York City and Chicago have rates of $16 and $16.80 respectively.
It's worth noting that the state minimum wage in Colorado is $13.65 per hour, significantly lower than Denver's new local minimum wage. Additionally, the federal minimum wage has remained at $7.25 per hour since 2009, with only 48 municipalities across the country passing higher local minimum wages.
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Critics argue that while increasing the minimum wage may seem like a step towards economic equality, it fails to consider the negative consequences for local businesses. The Economic Policy Institute, a non-profit think tank, has highlighted the potential drawbacks of such increases, citing the strain they place on businesses and the potential for job losses.
As Denver moves forward with this increase in the local minimum wage, it remains to be seen how local businesses will adapt and whether they will be able to withstand the financial challenges posed by these mandated wage hikes.