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Edgewater City council is interested in hearing feedback on a possible change to the current Tip Credit.
The Edgewater City council is looking to increase the Tip Credit for 2026, keeping Tipped Minimum wages at the same rate as Tipped minimum wages in 2025. This adjustment would give the city a year to develop a long-term approach that reflects the new state law and balances fair wages for tipped employees with the financial realities faced by local businesses. All employers will still be required to provide the set Edgewater minimum wage. With the tip credit, employers with tipped employees will be able to pay the Tipped Minimum wage (Edgewater Minimum Wage - Tip Credit) as long as the tips received by each employees covers the difference between the Tipped Minimum Wage and the Edgewater minimum wage.
Background: Edgewater City Council approved the minimum wage increase in April 2023 with the schedule below which has been published and implemented. State law allows minimum wages in municipalities that approved an increase over the state minimum wage to adjust ONLY every January 1.
Edgewater
Denver
State of Colorado
Min Wage
Tip Min Wage (Minimum minus 3.02 State Tip Credit)
(4.67)*
Min Wage
Tip Min Wage (Minimum minus 3.02 State Tip Credit)
Min Wage
Tip Min Wage (Minimum minus 3.02 State Tip Credit)
2025
16.52
13.50
18.81
15.79
14.81
11.79
2026
18.17
15.15 (13.50)*
19.29
16.27
15.16
12.14
2027
19.99
16.97 (TBA)*
Based on current min x COL
Based on current min x COL
2028
21.99
18.97 (TBA)*
Based on current min x COL
Based on current min x COL
* Propose 2026 tipped minimum wage.
When Edgewater adopted its minimum wage, state law required the city to use the state tip credit of 3.02, which had been unchanged since 2007. Beginning in 2026, new legislation allows local governments to adjust their own tip credit, provided tipped employees continue to earn at least the state’s tipped minimum wage.
What is Tip Credit: The tip credit is the amount employers can subtract from a tipped employee's minimum wage, provided tips make up the difference. The Edgewater tip credit has always been set to $3.02 per hour based on the State Tip Credit, meaning employers can pay a cash wage of $3.02 less than the cities minimum wage. The tip credit is written into Colorado State Law, but through legislation last year, local cities and counties can now change tip credit, as long as tipped employees are not paid under current state minimum wage for tipped workers (12.14 for 2026). Edgewater’s tip credit currently matches the state tip credit because that was required at the time of Edgewater adopted a minimum wage. As the minimum wage increases, the tip credit stays the same making the hourly rate (not including tips) employers pay tipped employees increase. Because changes can only occur on January 1, adopting the 2026 rate now provides a full year for deeper analysis and community engagement before any further adjustments are considered.
Edgewater City council is interested in hearing feedback on a possible change to the current Tip Credit.
The Edgewater City council is looking to increase the Tip Credit for 2026, keeping Tipped Minimum wages at the same rate as Tipped minimum wages in 2025. This adjustment would give the city a year to develop a long-term approach that reflects the new state law and balances fair wages for tipped employees with the financial realities faced by local businesses. All employers will still be required to provide the set Edgewater minimum wage. With the tip credit, employers with tipped employees will be able to pay the Tipped Minimum wage (Edgewater Minimum Wage - Tip Credit) as long as the tips received by each employees covers the difference between the Tipped Minimum Wage and the Edgewater minimum wage.
Background: Edgewater City Council approved the minimum wage increase in April 2023 with the schedule below which has been published and implemented. State law allows minimum wages in municipalities that approved an increase over the state minimum wage to adjust ONLY every January 1.
Edgewater
Denver
State of Colorado
Min Wage
Tip Min Wage (Minimum minus 3.02 State Tip Credit)
(4.67)*
Min Wage
Tip Min Wage (Minimum minus 3.02 State Tip Credit)
Min Wage
Tip Min Wage (Minimum minus 3.02 State Tip Credit)
2025
16.52
13.50
18.81
15.79
14.81
11.79
2026
18.17
15.15 (13.50)*
19.29
16.27
15.16
12.14
2027
19.99
16.97 (TBA)*
Based on current min x COL
Based on current min x COL
2028
21.99
18.97 (TBA)*
Based on current min x COL
Based on current min x COL
* Propose 2026 tipped minimum wage.
When Edgewater adopted its minimum wage, state law required the city to use the state tip credit of 3.02, which had been unchanged since 2007. Beginning in 2026, new legislation allows local governments to adjust their own tip credit, provided tipped employees continue to earn at least the state’s tipped minimum wage.
What is Tip Credit: The tip credit is the amount employers can subtract from a tipped employee's minimum wage, provided tips make up the difference. The Edgewater tip credit has always been set to $3.02 per hour based on the State Tip Credit, meaning employers can pay a cash wage of $3.02 less than the cities minimum wage. The tip credit is written into Colorado State Law, but through legislation last year, local cities and counties can now change tip credit, as long as tipped employees are not paid under current state minimum wage for tipped workers (12.14 for 2026). Edgewater’s tip credit currently matches the state tip credit because that was required at the time of Edgewater adopted a minimum wage. As the minimum wage increases, the tip credit stays the same making the hourly rate (not including tips) employers pay tipped employees increase. Because changes can only occur on January 1, adopting the 2026 rate now provides a full year for deeper analysis and community engagement before any further adjustments are considered.
