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Denver’s minimum wage is adjusting again: what you need to know

Denver’s minimum wage rises again

the Auditor at your service

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

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Denver’s Department of Finance recently announced an increase to the city’s minimum wage for next year. Starting January 1, 2026, the rate will rise from the current $18.81 per hour to $19.29 per hour. This change will directly affect an estimated 50,000 workers in the city, according to data from the Colorado Labor Market Information Gateway (CDLE) Occupational Employment and Wage Statistics.

This annual wage increase isn’t arbitrary. It’s required by Denver’s Citywide Minimum Wage Ordinance, which ties minimum wage increases to the Consumer Price Index (CPI). The Department of Finance has been responsible for calculating the updated rate since 2023, while my office remains the authority enforcing the law and educating the public. We don’t set the wage, but make sure that both workers and employers understand their rights and obligations.

Why should this matter to you? Because everyone likely knows someone earning Denver’s minimum wage. Whether you are a low-wage worker, an employer, or simply someone who knows someone who may be underpaid, here are a few important points to keep in mind:

1. Who is entitled to Denver’s minimum wage?

All workers performing work within Denver’s geographical limits must be paid the city’s minimum wage, with only a few exceptions. It doesn’t matter where the employer is based. If the work happens in Denver, the local wage laws apply. To find out whether your business or work site is within the City and County of Denver, use our regional address finder at DenverWages.org.

Denver’s minimum wage is adjusting again: what you need to know

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2. Tip credit is only for qualified food and beverage workers

Only employers in the food and beverage industry are allowed to apply a tip credit up to $3.02 per hour if they can prove their employees earn that amount in actual, documented tips. Workers who earn tips in other industries must still be paid the full minimum wage, with tips counted as extra income.

3. Overtime applies to minimum wage work

Minimum wage workers are entitled to overtime pay if they work more than 40 hours in a seven-day period or 12 hours in a single shift. That means in 2025, workers earning $18.81 per hour must receive $28.21 per hour for overtime. In 2026, that rate will increase to $28.94.

4. Misclassification risk is big concern

One of the most common issues we see is worker misclassification. If a person is performing the core duties of a business and is under the employer’s control, they are likely an employee, not an independent contractor. Misclassification can lead to underpayments and to legal consequences for businesses.

My office is committed to ensuring all workers earn what they legally owed, and that employers have the tools and guidance they need to comply with the wage law. If you have questions or concerns, do not hesitate to reach out to our team. I also encourage you to visit our website, DenverWages.org, to learn about your wage rights, try our minimum wage calculator, and explore other helpful wage resources. The more we know, the stronger our community becomes.