Minimum wage in Denver to rise to $19.84 next year

the Auditor at your service

Timothy M. O’Brien, CPA, Auditor of Denver

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Employers and employees have a few months to prepare for the next minimum wage adjustment. The Denver Department of Finance just announced that the local minimum wage will increase from $19.29 to $19.84 an hour, starting Jan. 1, 2027. For workers, this raise is more than a number on a paycheck. It is about keeping up with the rising costs of necessities like rent, food, medicine, and gas.

For employers, it is another annual adjustment that requires preparation and a clear understanding of the law. As Denver Auditor, I see both sides of this equation. My office enforces Denver’s minimum wage ordinance, but our role is not simply to investigate violations. We also work to educate workers and employers so that everyone understands their rights and obligations and can help prevent underpayments.

Denver established its local minimum wage in 2020, with annual increases tied to inflation. For 2027, the minimum wage will increase by 2.86%, based on the change in the Consumer Price Index for the Denver metropolitan area. This annual adjustment helps ensure that the minimum wage reflects changes in the cost of living and helps low-income workers maintain their purchasing power.

Minimum wage in Denver to rise to $19.84 next year

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The new $19.84 rate applies to workers performing work within the geographical boundaries of the City and County of Denver, regardless of immigration status, and with limited exceptions. That geographic requirement is important, particularly for businesses located near Denver’s borders. Employers can use the regional address finder on our website to confirm whether their work is being performed within the boundaries of the City and County of Denver.

Denver’s local minimum wage allows employers in the food and beverage industry to claim a tip credit for qualified tipped workers. Employers can reduce their obligation to pay the minimum wage up to $3.02 per hour if they have documentation showing that their employees received at least that amount in tips. When the tip credit is applied correctly, the minimum wage for eligible tipped workers in the food and beverage industry will be $16.82 per hour in 2027.

The tip credit does not apply to workers in other industries, even if they sometimes receive tips. Unfortunately, underpayments remain a concern in Denver. Hospitality, cleaning and maintenance, personal care and service, and gig-app work are among the industries at higher risk of paying less than the required minimum wage. Every dollar matters. Affordability is a real challenge for employees and employers in Denver, which is why everyone should know the new minimum wage rate in 2027.

Employers should review their payroll systems, maintain required records for at least three years, and display the updated bilingual wage-theft poster. Workers should know their rights and speak up when those rights are being violated. If you have questions about how to prepare for the adjustment or think you are being paid less than Denver’s minimum wage, reach out to my team at the links below.