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Edgewater becomes first Colorado city to increase tip credit for restaurant workers

Edgewater City Council votes to increase tip credit for restaurant workers, becoming Colorado's first city to use new authority under Restaurant Relief Bill.
Edgewater's change to tipped wages leaders say could be a solution to rising costs
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EDGEWATER, Colo. — The Edgewater Inn has seen many changes since it opened in 1953, the latest of which being a drastic rise in operating costs for owner Niya Gingerich.

“We're at this point where we've already trimmed the fat, you know, we've seen it across the across the board, with restaurants cutting hosts and bussers we no longer can afford,” said Gingerich.

It’s what led the Edgewater City Council to approve an ordinance to increase the tip credit for tipped workers – while the minimum wage will go up in 2026, tipped workers' base pay won't rise as long as tips make up the rest and they make at least the minimum wage overall.

Edgewater has become the first city in Colorado to increase the tip credit for restaurant workers, a move aimed at helping struggling local businesses manage rising operating costs.

  • Watch Adria's report in the video player below:
Edgewater's change to tipped wages leaders say could be a solution to rising costs

The vote follows the passage of the Restaurant Relief Bill earlier this year, which gives municipalities the authority to establish different minimum wage standards for tipped versus regular employees.

“We’re grateful that Edgewater City Council is taking the lead on this issue and supporting their local restaurant community through an increase to their tip credit," said Nick Hoover, the director of government affairs for the Colorado Restaurant Association. "Restaurants in Edgewater and across the state need all the help they can get right now as operating costs continue to increase and consumers continue to dine out less and less.”

The council's decision this week came after lengthy discussions about whether a cost-of-living increase was also needed. Councilmember Hannah Gay Keao supported additional measures.

“I believe that this, alongside many price increases, would help at least ensure that some workers have the same spending power a year from now that they have now,” she said.

In the end, the ordinance passed 4-3, with councilmembers agreeing to revisit the matter in July to determine rates for the following year.

“It’s important to note that this change was not made very easily. City council members spent a lot of time talking with both tipped workers and restaurant owners in Edgewater,” added Edgewater City Manager Dan Maples.

For now, Gingerich hopes Edgewater’s decision will inspire similar action in other communities across the Front Range.

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