BOULDER, Colo. — City leaders in Boulder are looking at whether to change what’s called the tip offset. That’s the amount employers can deduct from a tipped worker’s base pay since they also earn tips.
Right now, that offset is just over $3, but with the minimum wage set to rise again next year, officials are considering an increase.
"We’re looking at $1.35 would be the maximum increase possible. With four different levels that we’re exploring, it’s approximately a 30-cent difference,” Boulder Communications Manager Shannon Aulabaugh said. “Council could decide one of those numbers or any number in between."
Boulder’s current minimum wage is $16.82 an hour. For tipped workers, that drops to $13.80 after the offset.
City leaders say that, no matter what, workers must still earn at least the minimum wage.
“Regardless of any change being made, the tip wage earner has to make at least minimum wage, which, every year, is going to increase in the city of Boulder,” Aulabaugh said.
Officials are now asking both workers and business owners to weigh in.
“The people that are operating a business and the tipped wage earners, because this is going to impact them the most,” Aulabaugh said. “Reaching our tipped wage earners is going to be a challenge. We are trying to do everything we can to reach them, because we can't go while they're on shift and ask them to fill out a survey."
Rachel Rose Isaacson says her pay is different from day to day. For her, any change to her tipped wages and how they’re calculated feels personal.
“Adding further instability and less base pay as the cost of living goes up could sadly contribute to the devastating impacts when our social services are already strained,” restaurant server Rachel Rose Isaacson said.
Denver7 spoke to several business owners in Boulder to get their thoughts on this proposal. They told Denver7 they were hesitant to speak out for or against the proposal at this time.
Colorado Restaurant Association President and CEO Sonia Riggs told Denver7 that the CRA is grateful city council is taking up the issue of the tip credit and listening to independent restaurants in their community, who desperately need help right now amid out-of-control costs.
He said the proposal won’t cut worker pay but would give restaurants more flexibility.
“We appreciate Boulder working with its restaurant community to find a solution that will keep our industry viable, maintaining the flexible, well-paying jobs that come along with a dynamic restaurant scene. None of the options on the table will reduce employee wages, but rather, give restaurants the flexibility to stay open for business and direct more towards their back-of-house crews, who are typically the lowest-paid staff in a restaurant,” he said.
The city says this is just the beginning.
“Any change is going to affect both the business itself and the tip wage earner,” Aulabaugh said.
Feedback is open through June, with a final decision expected this fall. If you would like to leave feedback on this issue, click here.
Aulabaugh said the council will weigh the impacts heavily.
“We're working on getting flyers posted. We're posting on social media channels that we think will be seen. It will take someone just a few minutes to provide some feedback on how a change would impact them," Aulabaugh said.
