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Project Overview

The Cities of Boulder, Longmont, Lafayette, Louisville and Erie collectively explored an increase to the local minimum wage in their respective communities, as allowed by state law, through research and community engagement to consider a specific minimum wage level that is competitive, responsive to current and future needs, and meets as many shared outcomes as possible.

Boulder City Council has approved an increase minimum wage. Starting Jan. 1, 2025, the new minimum wage in the city of Boulder is going up to $15.57/hr.

Exploring an increase to minimum wage regionally.

Current minimum wages

The following are the minimum wages in the state as of Jan. 1, 2024:

  • Colorado (statewide, including the City of Boulder, Louisville, Longmont, Layfette and Erie) – $14.42 or $11.40 with tips
  • Denver – $18.29 or $15.27 with tips
  • Edgewater – $15.02 or $12 with tips
  • Unincorporated Boulder County – $15.69 or $12.67 with tips

Map of 2024 wages across the Boulder-Denver metro region

  • A map with the title "Exploring Regional Minimum Wage" that includes the city or town logos for Longmont, Boulder, Erie, Lafayette, and Louisville. The map summarizes the current minimum wages in communities across Colorado as of 2024. The Cities of Longmont, Lafayette, Louisville, and Boulder, and the Town of Erie are highlighted in blue to signify that they are the cities partnering to explore a higher regional minimum wage. The map highlights unincorporated Boulder County in yellow.

    Map of 2024 wages across the Boulder-Denver metro region. 

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  • Mapa del salario mínimo en 2024 en la zona metropolitana de Boulder-Denver

    Mapa del salario mínimo en 2024 en la zona metropolitana de Boulder-Denver

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    • Background

    In 2019, the State legislature passed House Bill 19-1210 Local Government Minimum Wage (HB 19-1210), which gave local governments the right to set their own minimum wage. Later that same year, our communities began discussions on this topic but were interrupted due to the COVID-19 pandemic. Five years later the pandemic has become endemic, and we have felt the numerous impacts to our economies including sharp increases in inflation, interest rates and the cost of living.

    Why a regional approach?

    • Changing the minimum wage in any community changes the regional economy
    • Many people live in different communities than where they work
    • Businesses, nonprofits, and other organizations have operations and customers throughout the county
    • A regional approach to considering minimum wage will help us understand the challenges and opportunities in the regional economy, and could provide consistency for employees and employers who may participate across multiple communities.

    Making an Informed Decision

    Community involvement and economic analysis are needed in order for elected officials to make an informed decision on a potential change.

    Economic Analysis

    An economic analysis is being conducted to determine the potential economic effects of increasing regional minimum wage on local businesses, employers, workers, and overall local socio-economic indicators. The results of the analysis will include recommendations for a new target wage, a plan to reach that target, and how to adjust the minimum wage annually after reaching the goal.

    Community Engagement

    A community engagement model was co-created with staff members from each of the five participating communities, members of Chambers of Commerce, members of the Self Sufficiency Wage Coalition and members of nonprofits. This model is being used across all participating cities and is tailored and implemented based on community needs. Information from community engagement will inform elected officials in each jurisdiction whether and how to move forward with ordinances regarding local minimum wage.

    Regional collaboration does not commit any city to an outcome.

    City Council Materials regarding Regional Minimum Wage Study including final reports from community engagement and economic analysis

    Frequently Asked Questions

    A Living Wage is an amount of money that, in theory, should enable individuals or families to afford decent housing, food, and other essential needs. Boulder, Longmont, and Boulder County have living wage policies that only apply to their own and contracted staff. City and county workforce living wages do not apply community wide. Many in Boulder County base these workforce living wages on the Self Sufficiency Standard report PDF, which is led by Colorado Center on Law and Policy.

    • The economic analysis modeled five scenarios to inform each municipality’s elected body and staff on the impacts of increasing the minimum wage regionally. Two scenarios assume a minimum wage that increases to meet unincorporated Boulder County and two scenarios assume increases that reach Denver. Both sets of scenarios reflect a range of increases from relatively slow to as quick as possible under state law.

    Importantly, these scenarios are not the only options available to council, but instead represent a spectrum of possibilities for target wage and an escalation schedule in an ordinance:

    • Baseline (No change) – Remain at state minimum wage, $14.42 in 2024, increase annually with Consumer Price Index for All Urban Consumers (CPI-U).
    • B1 – Testing the upper limits of the legislation, this scenario maximizes the allowable 15 percent increases to match unincorporated Boulder County, continuing along with an increase schedule until reaching $25 in 2030, and increasing based on inflation after that.
    • B2 – Matching unincorporated Boulder County on a slower escalation schedule with a longer time horizon, reaching $28.98 by 2035, and increasing based on inflation after that.
    • D1 – Testing the upper limits of the legislation, this scenario maximizes the allowable 15 percent increases to match Denver, with annual increases until reaching $21.84 in 2030, and increasing based on inflation after that.
    • D2 – Matching Denver on a slower escalation schedule with a longer time horizon, reaching $25.32 in 2035.

    $16.58 per hour.

    The law stipulates that a wage cannot increase more than $1.75 per hour or 15%, whichever is higher, per year from the present minimum wage.

    The law requires that an increased minimum wage include the statewide tip credit for food and beverage employees. The maximum tip credit an employer can claim is $3.02 per hour. So, for example, if the City/Town implemented an increased wage of $16.58 per hour, an employee who earns tips could be paid a minimum of $13.56 per hour plus tips.

    Normally minimum wage raises will have a target amount, but those raises don’t happen overnight. After adoption of a new target wage the minimum wage will escalate over a few years until it reaches the target. After that wages can be tied to an index, like the consumer price index, to guide annual adjustments to ensure minimum wage keeps up with the cost of living. Currently, Colorado is one of 30 states along with Washington D.C. that have minimum wages above the federal minimum wage of $7.25 per hour. The minimum wage is indexed for inflation in 19 states and D.C., meaning it is automatically adjusted each year for increases in prices.

    No.

    House Bill 19-1210 Local Government Minimum Wage states that any wage raise – either an escalation to a target or an annual adjustment – must coincide with state increases on January 1.

    The law stipulates that any wage increase has be effective January 1. For 2025, this would be January 1, 2025.

    • Ordinance adoption must be preceded by community engagement
    • Only 10% of jurisdictions across the state can adopt a different minimum wage ordinance, but an intergovernmental agreement covering several municipalities is considered one in that calculation
    • Any wage raise – either an escalation to a target or an annual adjustment – must happen at the same time as state increases on January 1
    • Escalation is limited to $1.75 or 15%, whichever is higher
    • The tip credit must be equal to state offset

    For a regional approach to work, many items will need consensus from participating communities, except for enforcement and escalation schedules, which can be different local decisions for each community. For a new minimum wage, collaborating cities will need to agree on:

    • Target wage and annual increases to reach that target wage, escalation is typically over a 3-5 year period
    • After escalation, how to make regular adjustments into the future (also called indexing)
    • Whether or not to expand the wage to cover unemancipated minors (minors still under parental authority)
    • Enforcement

    Boulder City Council decided on a longer timeline so that cities could collaboratively explore this topic. This effort is on a timeline topursue a potential minimum wage increase regionally starting in 2025.

    No. The purpose of this regional effort is to provide elected officials with enough information to determine if and how to act on local minimum wage in their community.

    If the Council/Board wished to implement a higher minimum wage, staff would draft an ordinance based on the direction provided this evening for the Council/Board/s consideration. If that ordinance is approved, staff would then work to communicate the change to businesses and residents.

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