Local Governments Tip Offsets for Tipped Employees
Summary
Colorado law allows a local government to establish local minimum wages in excess of the statewide minimum wage established in the state constitution. A local government that enacts a minimum wage must provide a tip offset for tipped employees in an amount equal to the tip offset amount described in the state constitution, which is $3.02. The act states that on and after January 1, 2026, a local government that has enacted a code or an ordinance imposing a minimum wage that exceeds the state minimum wage may increase the amount of the tip offset associated with the local minimum wage; except that a local government shall not impose a tip offset in an amount that allows a tipped employee to earn less than the state minimum wage minus $3.02. (Note: This summary applies to this bill as enacted.)
Bill status
signed
all 5 stages cleared
Introduction
Feb 2025
Committee Review
Apr 2025
House Passage
Mar 2025
Senate Passage
Apr 2025
Signed into Law
Jun 2025
Introduced Feb 11, 2025
Signed Jun 3, 2025
Maddy AI version diff · 5 comparisons
What changed between versions
Rerevised (04/15/2025)
→
Revised (04/14/2025)
·
2 edits
MINOR
The bill was revised to update the versioning header from 'Rerevised' to 'Revised' and includes new text clarifying that local governments cannot count travel time as work time when employees pass through their jurisdiction without stopping for employment purposes, except for refueling or personal errands. This change adds a specific exemption to minimum wage calculations for transit time, protecting commuting time from being classified as compensable work hours.
Scope change
The bill's scope was expanded to explicitly exclude certain travel time from minimum wage calculations, creating a new exemption for employees passing through local government jurisdiction without stopping for work purposes.
REQUIREMENT
Added new provision stating local governments cannot include travel time in minimum wage calculations when employees pass through jurisdiction solely for transit between outside points, except for refueling or personal errands.
TECHNICAL
Updated versioning header from 'Rerevised' to 'Revised' and modified the amendment adoption language to reflect second reading adoption in the Second House.
Floor votes · Senate Apr 15, 2025 · House Mar 19, 2025
How they voted
20–13
Passed · 1 other
Total votes 34
Apr 15, 2025
D
Democratic22
59% Nay
R
Republican12
91% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
14
Key actions
6
Committee
4
Jun 3, 2025
Signed into law
Governor Signed
executive
Apr 15, 2025
Upper · Passed
Senate Third Reading Passed - No Amendments
upper
Apr 10, 2025
Upper · Passed
Senate Committee on Local Government & Housing Refer Unamended to Senate Committee of the Whole
upper
Mar 25, 2025
Introduced
Introduced In Senate - Assigned to Local Government & Housing
upper
Mar 19, 2025
Lower · Passed
House Third Reading Passed - No Amendments
lower
Mar 14, 2025
Lower · Passed
House Committee on Finance Refer Amended to House Committee of the Whole
lower
Mar 3, 2025
Lower · Passed
House Committee on Finance Witness Testimony and/or Committee Discussion Only
lower
Feb 20, 2025
Committee
House Committee on Business Affairs & Labor Refer Unamended to Finance
lower
Feb 11, 2025
Introduced
Introduced In House - Assigned to Business Affairs & Labor
lower
4 primary · 16 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Alex Valdez
DDemocratic
P
Judy Amabile
DDemocratic
P
Lindsey Daugherty
DDemocratic
P
Steven Woodrow
DDemocratic
Co
Andy Boesenecker
DDemocratic
Co
Barbara Kirkmeyer
RRepublican
Co
Byron Pelton
RRepublican
Co
Chad Clifford
DDemocratic
Co
Chris Richardson
RRepublican
Co
Janice Rich
RRepublican
Co
Julie McCluskie
DDemocratic
Co
Larry Liston
RRepublican
Co
Lisa Frizell
RRepublican
Co
Marc Snyder
DDemocratic
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