Attachment A - Proposed Ordinance 8754

ORDINANCE 8754

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AN ORDINANCE AMENDING CHAPTER 12-6, “MINIMUM WAGE,” B.R.C. 1981, SETTING A LOCAL CITY OF BOULDER TIP OFFSET AMOUNT FOR FOOD AND BEVERAGE INDUSTRY WORKERS; AND SETTING FORTH RELATED DETAILS

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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BOULDER, COLORADO:

9 Section 1. Chapter 12-6, “Minimum Wage,” B.R.C. 1981, is amended to read as follows:

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12-6-1. - Purpose and Legislative Intent.

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...

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(b) Legislative Intent. The City Council recites the following legislative findings and statements of intent that were taken into consideration in the adoption of this chapter:

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(1) The City Council of the City of Boulder recognizes that the cost of living in Boulder exceeds the average cost of living in the State of Colorado.

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... (6) The State of Colorado allows local jurisdictions to establish a minimum wage for individuals performing work while physically within the jurisdiction under Title 29, Article 1, Part 14 and Title 8, Article 6, Part 1 of the Colorado Revised Statutes. Pursuant to these is statutes, the City of Boulder has the authority to set a minimum wage exceeding the state minimum wage and, on or after January 1, 2026, increase the amount of the tip offset associated with the local minimum wage, as long as the city abides by the state's qualifications and restrictions on applicability. (7) Enforcement of this chapter shall be through the Colorado Department of Labor and Employment. (87) Addressing the minimum wage for the working residents of the city of Boulder is a matter of significant local concern.

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12-6-2. - Definitions.

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Employer means an individual, person, partnership, firm, corporation, association, organization or any other person, group, collective or entity that employs one or more employees, or any successor thereof, within the city.

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... Tips means an optional verifiable sum presented directly and customarily by customers as a gratuity in recognition of some service performed for customers by the person receiving the tip. Tips include, but are not limited to: (1) Tips received directly from customers;

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(2) Tips received electronically from employers;

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(3) Tips received from other employees through tip-sharing arrangements; and

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(4) Charged tips, like credit and debit card charges, that are distributed to employees by employers.; and

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(5) Noncash forms of tips, including tickets, passes, or other goods or commodities that customers give to employees.

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... 12-6-3. - Minimum Wage Required. ... (b) The City of Boulder Minimum Wage is as follows, exclusive of fringe benefits and any other deductions or credits, except as otherwise described in this chapter: (1) Beginning January 1, 2025: $15.57 per hour;

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(2) Beginning January 1, 2026: $16.82 per hour;

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(3) Beginning January 1, 2027: $18.17 per hour;

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(4) Beginning January 1, 2028, and on January 1 of each subsequent calendar year, the City of Boulder Minimum Wage shall increase by an amount corresponding to the prior year increase, if any, in the Consumer Price Index, for all items, published annually for the Denver-Aurora-Lakewood Area. (c) Tips regularly and actually received by a food and beverage worker may be applied to an employer's obligation to pay the food and beverage worker the City of Boulder Minimum Wage. However, As permitted by state law, an employer of a food and beverage worker who regularly receives tips may pay a worker a base wage, calculated as the City of Boulder Minimum Wage minus the established tip offset. An employer must pay enough in base wages for a worker’s total pay, with tips, to equal the City of Boulder Minimum Wage. The tip offset is as follows:

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(1) Prior to January 1, 2027, no more than $3.02 per hour in tip income (“State Tip Offset Credit”) may be used to partially offset payment of this wage the City of Boulder Minimum Wage.

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(2) Beginning January 1, 2027, no more than [$$ AMOUNT] per hour in tip income (“Local Tip Offset”) may be used to partially offset payment of the City of Boulder Minimum Wage.

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(3) Beginning January 1, 2028, and on January 1 of each subsequent calendar year, the Local Tip Offset shall increase by an amount corresponding to the prior year increase, if any, in the Consumer Price Index, for all items, published annually for the DenverAurora-Lakewood Area; except that the Local Tip Offset shall never be increased to an amount that would cause a tipped employee to earn less than the state minimum wage minus the State Tip Offset.

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(d) Nothing in this chapter shall lessen any other obligation applicable to an employer to pay a minimum wage under any other law, rule, or regulation, including but not limited to, federal and state minimum wage laws or that arise from or in connection with federal or state funding. In the event of a conflict with any other applicable wage requirement, the greater wage rate must be paid.

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12-6-4. - Employer Responsibilities.

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(a) Employers must post notice with letters no less than one inch high of the currently effective City of Boulder Minimum Wage and, after December 31, 2026, the current effective Local Tip Offset in a prominent place that is easily accessible to all employees. Employers must display the posting in English and Spanish. If the display of a physical notice is not feasible, including the situation when an employee does not have a regular workplace or job site, employers must provide the required information on an individual basis, in an employee's primary language, in paper or electronic form that is reasonably conspicuous and accessible. Notice shall include how to contact and file a complaint with the Colorado Department of Labor and eEmployment and/or the City of Boulder’s Office of Human Rightsto file a complaint.

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... 12-6-5. - Violations; Enforcement; Penalties. ... (c) Any person claiming to be aggrieved by a violation of this chapter may file or pursue a complaint with the Colorado Department of Labor and Enforcement Employment against an employer alleged to have violated this chapter within two years of any alleged violation, except that violations under this chapter for a willful violation may be brought within three years after the date of the violation. Nothing in this chapter shall preclude an individual from pursuing or participating in any other enforcement action or other remedy available under State of Colorado law. (d) Any person claiming to be aggrieved by a violation of this chapter may also file a complaint with the City of Boulder’s Office of Human Rights. Employers who fail to pay due wages may be charged with a municipal violation pursuant to Section 5-3-13, B.R.C. 1981.

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(de) A violation of this chapter shall be considered sufficient “cause” to suspend or revoke a city business license pursuant to the procedures set forth in Section 4-1-10, “Revocation or Suspension of Licenses,” of this code.

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12-6-6. - City Manager Rules.

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The city manager is authorized to adopt rules and regulations necessary to interpret, further define or implement the provisions of this chapter.

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Section 2. This Ordinance is necessary to protect the public health, safety, and welfare of the residents of the city, and covers matters of local concern.

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Section 3. The City Council deems it appropriate that this Ordinance be published by title only and orders that copies of this Ordinance be made available in the office of the city clerk for public inspection and acquisition.

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INTRODUCED, READ ON FIRST READING, AND ORDERED PUBLISHED BY TITLE ONLY this 25th day of June 2026.

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___________________________________ Aaron Brockett, Mayor

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Attest:

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__________________________________ City Clerk

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READ ON SECOND READING, PASSED AND ADOPTED this 30th day of July 2026.

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____________________________________ Aaron Brockett, Mayor

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Attest:

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__________________________________ City Clerk

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