Under new Colorado law, Edgewater changes how tipped workers are paid

Starting on Jan. 1, Coloradans earning the minimum wage will earn a little more. Depending on where you live, there will be changes to how tipped workers are paid, including in the City of Edgewater. The city will be the first in the state to take advantage of changes to state law that give employers greater control over how tipped workers are paid.

For decades, Edgewater Inn Pizza has been a literal cornerstone of the small town. Owner Nayia Gingerich and her husband, Grant, took over the historic location about three years ago after closing their Tennyson bar, Local 46, in Denver.

"I actually grew up in the neighborhood and grew up coming here, so it's a special place for myself and many, many people," said owner Nayia Gingerich. "Labor is one of the number one issues in what has been kind of destroying this independent restaurant community," she said.

It's an issue she took up last fall, pushing the Edgewater City Council to take advantage of a new state law designed to ease labor costs for restaurants, a law Colorado Gov. Jared Polis has urged cities to use. The legislation allows local governments to raise their hourly minimum wage without also raising the tipped minimum wage.

"I've been really trying to do some community outreach and education around it so that people understand this isn't a minimum wage issue, it's a tip credit issue," Nayia Gingerich said.

After much debate and opposition from several council members, the measure passed.

Beginning in 2026, Edgewater's hourly minimum wage will increase from $16.52 to $18.17. However, the tipped minimum wage will remain $13.50 an hour. If employees do not earn enough in tips to reach the full $18.17, employers must make up the difference —the "tip credit."

"The minimum wage protects everyone. It protects tipped and non‑tipped employees," Gingerich said.

Not everyone agrees, and not everyone will be making changes under the new law.

In Denver, both the hourly and tipped minimum wages will increase in 2026. A Denver City Council spokesperson said there has been no legislation or formal discussion to change the current model.

We asked the governor to weigh in on Edgewater's decision, as well as Denver's choice to maintain its existing structure. In a statement, he said:

"If local communities like Denver don't use the law we passed to get this right to save restaurants, and restaurants continue to suffer and close, costing workers their livelihoods, then it's imperative the state intervene to fix it."