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DENVER – The Colorado Chamber of Commerce today announced its support of House Bill 1208, which would ensure that local governments adopting higher minimum wages also implement the maximum allowable tip offset under state law. This legislation will help Colorado restaurants keep their doors open after experiencing a sharp increase in closures recently, specifically in Denver, which has lost 22% of its restaurants since 2022.
HB 1208 would define the maximum tip offset as the difference between the local minimum wage and the state minimum wage, plus the constitutional $3.02 tip offset amount. This means that as local minimum wages increase, the tip offset will automatically adjust, preserving the ability of restaurants to compensate both tipped and non-tipped employees more effectively.
“Restaurants are a cornerstone of Colorado’s economy and local communities, but many are struggling under the weight of rising labor costs and inflation,” said Loren Furman, president and CEO of the Colorado Chamber. “This legislation provides a balanced solution, giving restaurants the flexibility to adapt to local wage increases while continuing to offer competitive wages to all employees. We’re appreciative of our partners at the Colorado Restaurant Association for spearheading this effort to ensure the long-term viability of the industry.”
“The unintended consequences of Colorado’s fixed state tip offset have been crushing local restaurants,” said Sonia Riggs, president and CEO of the Colorado Restaurant Association. “Paired with skyrocketing costs across the board, operators are closing their doors in record numbers, especially in Denver. That means workers are losing their jobs, and our communities are losing their souls. This bill will help stop the closures and allow restaurants to invest more in their back- and front-of-house teams.”
Restaurants across Colorado are closing at an alarming rate, with over 200 businesses shutting their doors in 2024 alone. Rising labor costs and wage disparities have made it increasingly difficult for many to stay in business. In 2025, 92% of restaurants raised their menu prices, 68% reduced staff or cut hours and many have struggled to keep up with wage increases, especially for back-of-house employees.
The Colorado Chamber’s Labor & Employment Policy Council unanimously voted in support of the proposal as it addresses the unintended consequences of rising local minimum wages on the restaurant industry while providing much-needed flexibility for restaurants to maintain fair wages for employees.
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The Colorado Chamber of Commerce champions free enterprise, a healthy business environment and economic prosperity for all Coloradans. It is the only business association that works to improve the business climate for all sizes of business from a statewide, multi-industry perspective. What the Colorado Chamber accomplishes is good for all businesses, and that’s good for the state’s economy. It was created in 1965 based on the merger with the Colorado Manufacturers’ Association.