A bill that would lower the pay for tipped workers in areas where the local minimum wage exceeds the state’s threshold advanced to the Colorado House Finance Committee after over five hours of testimony. House Bill 1208, sponsored by Denver Democratic Reps. Steven Woodrow and Alex Valdez, aims to address the unintended consequences of a 2019 law that allowed local governments to set minimum wages above the state’s threshold.
Critics argue that the bill, which requires local governments with minimum wages above the state’s to impose tip offsets, amounts to a wage cut for employees. However, restaurant owners facing financial strain due to rising payroll-related expenses support it, believing it will help balance costs.
Proponents of the bill, including the Colorado Restaurant Association, say the current wage situation in places like Denver is unsustainable for businesses. However, opponents, including the SEIU Local 105 and the Colorado Center on Law and Policy, argue that tipped workers cannot afford a wage cut, with some servers potentially losing over $3,000 a year in pay.
The bill passed the House Business Affairs and Labor Committee by an 11-2 vote, with some lawmakers expressing concerns about the abrupt wage cuts and suggesting a more gradual approach. The bill now heads to the House Finance Committee with a fiscal note of more than $92,000 for fiscal year 2025-2026.
The debate over the bill reflects broader concerns within the restaurant industry about ensuring fair wages for workers while managing rising costs and increasing competition. If passed, the bill could have significant implications for tipped workers and businesses in Colorado.
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