Fiscal Responsibility The Bully Pulpit

Denver’s Minimum Wage Hike: Good Intentions, Closed Kitchens

Denver’s Minimum Wage Hike: Good Intentions, Closed Kitchens
Written by Scott James

Colorado Politics shows how Denver’s wage rules raise costs and risk jobs while the research stays mixed. Another reason government should exit the labor market.

Colorado Politics’ Deborah Grigsby digs into Denver’s local minimum wage and the ripple effects across restaurants and workers, part of the outlet’s Fiscal Rockies series. It is the rare piece that actually lays out tradeoffs instead of slogans.

The article walks through the numbers, the closures, and the lawsuits. It notes Denver’s latest minimum wage increase and the state’s scramble to blunt the impact for tipped workers, while also highlighting wage-theft enforcement and the clashing studies used to claim victory on both sides. Read it and you see the larger point: once government inserts itself into price-setting, complexity and costs multiply fast.

The Bullet Point Brief

  • Denver’s floor rises again to 19.29 dollars an hour, with a tipped floor of 16.27 if tips cover the gap. The state minimum is 14.81. That spread drives behavior.
  • The Legislature passed HB 25-1208 to let high-wage cities dial back the tipped floor toward the state level. Translation: even supporters see the strain.
  • Closures are real. Cap City Tavern said higher wage, food costs, taxes, and fees were “too much to bear.” Denver accounted for 82 percent of statewide restaurant closures in 2024.
  • The data duel: an industry study ties California’s $20 fast-food wage to higher prices and automation, while a UC Berkeley analysis sees little job loss. Pick your paper, pick your answer.
  • Enforcement surged. Denver Labor recovered a record 2.07 million dollars for 4,505 workers in 2024 under a tougher wage-theft ordinance. Compliance isn’t free.

My Bottom Line

This is even more proof that government should not sit in the middle of the labor market. When City Hall sets a price, businesses do the only rational thing they can do: raise prices, cut hours, add fees, automate, or close. Workers feel that whiplash the hardest.

Yes, inflation is brutal. But the answer is not a city-by-city wage experiment that ignores margins and math. Denver’s ordinance forces everyone to pretend the same dollar buys the same output in every kitchen. It does not. The result is fewer entry-level rungs on the ladder and more “Help Wanted” signs that never come down.

In Weld County, we keep it simple. Let markets set wages, keep regulations lean, and focus government on the basics. If lawmakers truly want higher take-home pay, cut the hidden taxes baked into fees, permits, and energy policy. Stop chasing headlines and start lowering costs so employers can raise wages the right way: by growing.


Source: Colorado Politics

About the author

Scott James

A 4th generation Northern Colorado native, Scott K. James is a veteran broadcaster, professional communicator, and principled leader. Widely recognized for his thoughtful, common-sense approach to addressing issues that affect families, businesses, and communities, Scott, his wife, Julie, and son, Jack, call Johnstown, Colorado, home. A former mayor of Johnstown, James is a staunch defender of the Constitution and the rule of law, the free market, and the power of the individual. Scott has delighted in a lifetime of public service and continues that service as a Weld County Commissioner representing District 2.