Denver City Council Considers Tipped Wage Freeze, Service Fee

Report cites rising costs for Denver restaurants, prompting proposals to reduce wages and add citywide service fee

Mar. 3, 2026 at 2:31am

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Denver City Council is preparing to debate changes to restaurant industry regulations, including a potential reduction in tipped minimum wages and the implementation of a citywide service fee, according to a recent report examining the financial challenges facing Denver's restaurant industry.

Why it matters

The report found that operating costs for Denver restaurants now exceed those in New York City, leading to concerns among city leaders and industry stakeholders. Any changes to tipped wages or the addition of a service fee could have significant implications for Denver's restaurant workers and customers.

The details

The forthcoming proposals stem from a recently completed report that has not been publicly released. The report indicates that rising costs, including increased rent, labor expenses, and supply chain disruptions, are contributing to a challenging operating environment for Denver restaurants, with some facing closure. Councilman Paul Kashmann is drafting a proposal based on the report's recommendations, which are expected to address the issue of tipped wages and potentially move towards a reduced or frozen minimum wage for tipped employees.

  • The Denver Business Journal reported on the findings of the report earlier today (March 1, 2026).
  • Denver leaders are scheduled to debate these issues in the coming weeks, but a specific date has not yet been set.

The players

Denver City Council

The governing body of the City and County of Denver, Colorado, which is preparing to consider changes to restaurant industry regulations.

Paul Kashmann

A Denver City Council member who is currently drafting a proposal based on the report's recommendations.

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What’s next

The Denver City Council is expected to begin debating the proposed changes to restaurant industry regulations in the coming weeks, with a specific date for the discussion yet to be set.

The takeaway

The potential changes to tipped wages and the implementation of a citywide service fee in Denver could have far-reaching implications for the city's restaurant industry and its workforce, as the council seeks to address the financial challenges facing local restaurants.