Tipped Minimum Wage in Edgewater (2026)
Edgewater, Colorado — a city of roughly 5,000 people pressed against Denver's western edge — runs one of the highest local minimum wages in the country, and one of the most unusual tipped-wage experiments. As of January 1, 2026 the city minimum is $18.17 and the tipped cash wage is $13.50, with a deliberately widened $4.67 tip credit in between.
By the TippedPay editorial team · Updated $1
Key numbers at a glance
| Rule | Edgewater (2026) | Colorado (2026) | Federal |
|---|---|---|---|
| Full minimum wage | $18.17 | $15.16 | $7.25 |
| Tipped cash wage | $13.50 | $12.14 | $2.13 |
| Maximum tip credit | $4.67 | $3.02 | $5.12 |
| Top-up when tips fall short | Required, to $18.17 | Required, to $15.16 | Required, to $7.25 |
How Edgewater tipped pay works
Edgewater adopted its own minimum wage ordinance in 2023 (Ordinance 2023-07), using the local-wage authority Colorado created in 2019. The posted schedule moves the full minimum from $13.65 in 2023 to $15.02 in 2024, $16.52 in 2025 and $18.17 in 2026, on a path intended to eventually match Denver's minimum ($19.29 in 2026, per the Colorado Department of Labor and Employment). For tipped workers the 2026 rule is: a $13.50 cash wage plus a tip credit of up to $4.67 — the city raised the credit above Colorado's standard $3.02 for 2026 — and if tips do not carry you to $18.17, the employer tops up the difference. Every hour of every workweek must land at $18.17 or better in wages plus tips.
Why the wider credit? The full minimum jumped $1.65 in one year, and the city held the tipped rate flat at its 2025 level of $13.50 by absorbing the jump into the credit rather than the cash wage. The result is a one-year experiment: kitchen and non-tipped staff got the full increase, tipped staff got it only in the form of a higher guarantee. A 30-hour week shows the mechanics. Cash wages: 30 × $13.50 = $405.00. Weekly floor: 30 × $18.17 = $545.10. Keep $200 in tips and you finish at $605.00 — $20.17 an hour effective, no top-up owed. Keep only $80 and you are at $485.00, short $60.10, which must appear on the check as make-up pay. Run your own numbers through the server paycheck calculator.
Colorado state law sets the backdrop — $15.16 full minimum and $12.14 tipped in 2026, with a $3.02 maximum credit — and Edgewater's ordinance simply overrides it inside city limits. The Colorado tipped minimum wage breakdown covers the state system in detail.
Edgewater vs. Colorado vs. the federal rule
| Rule | Edgewater (2026) | Colorado (2026) | Federal |
|---|---|---|---|
| Full minimum wage | $18.17 | $15.16 | $7.25 |
| Tipped cash wage | $13.50 | $12.14 | $2.13 |
| Maximum tip credit | $4.67 | $3.02 | $5.12 |
| Top-up when tips fall short | Required, to $18.17 | Required, to $15.16 | Required, to $7.25 |
| Overtime cash rate | ≈ $22.59 | ≈ $19.72 | ≈ $5.76 |
| Next scheduled step | $19.99 on Jan 1, 2027 | CPI adjustment | None since 2009 |
The edge over the state is $3.01 an hour on the full minimum and $1.36 on the tipped cash wage. On a 30-hour week that is $90.30 more guaranteed floor in Edgewater than the same job under state rates — before tips, which follow the same either way.
The schedule ahead
| Date | Full minimum | Tipped rate |
|---|---|---|
| January 1, 2025 | $16.52 | $13.50 |
| January 1, 2026 | $18.17 | $13.50 (credit widened to $4.67) |
| January 1, 2027 | $19.99 | To be set — city action was expected by late July 2026 |
| January 1, 2028 | $21.99 | To be set |
The 2027 and 2028 tipped figures are the open question. The city said it would set the 2027 tipped rate by the end of July 2026, and Colorado's 2025 legislation now lets cities tune the tip credit year by year. Treat anything past $19.99 as unconfirmed until it is posted — verify with the city's minimum wage page.
What Edgewater servers should watch
The 2027 tipped rate. Your cash wage is the one number the council resets annually. The full minimum is locked at $19.99 for 2027, but the tipped rate — and how much of the increase survives the tip credit — is a city decision. Check the posted schedule before January.
The top-up, weekly. With a $4.67 credit, the maximum tips your employer can count is $140.10 on a 30-hour week. Anything less must be made up in cash. Keep per-week records of hours and kept tips; the $545.10 floor is a legal right, not a target.
Overtime on the full minimum. Overtime is computed on $18.17, not $13.50: the OT cash rate is $13.50 + $9.09 = $22.59 an hour plus tips. Time-and-a-half on the cash wage ($20.25) shorts you $2.34 on every overtime hour — the overtime calculator prices it exactly.
Where the hour happens. Edgewater is small enough that servers routinely cross Sheridan Boulevard into Denver. Denver's minimum ($19.29 in 2026) governs hours worked in Denver; Edgewater's governs hours in Edgewater. Log the location of every shift — the two ordinances do not blend.
Your real number. A $13.50 base with $19 an hour in tips is a $32.50 job in disguise. Compute effective hourly — wages plus kept tips, divided by hours — before comparing offers. For how Edgewater stacks up against other local ordinances, see our city tipped minimum wage guide.
FAQ
What is the tipped minimum wage in Edgewater in 2026?
$13.50 per hour. The city minimum wage is $18.17 as of January 1, 2026, and the city tip credit for 2026 is $4.67, so tipped workers must get $13.50 in cash plus tips reaching $18.17 every hour (per the city's posted schedule).
Why did the Edgewater tipped rate stay at $13.50 in 2026?
Because the city widened its tip credit from Colorado's $3.02 to $4.67 for 2026 while the full minimum jumped from $16.52 to $18.17. The two changes cancel out, holding the tipped cash wage at its 2025 level for one year.
What will tipped workers earn in Edgewater in 2027?
The 2027 tipped rate was not yet set — the full minimum rises to $19.99 on January 1, 2027, and the city said it would adopt the 2027 tipped rate by late July 2026. Verify the posted figure with the city before counting on it.
What happens if my tips don't cover the gap to $18.17?
The employer must top up the difference so every hour of the workweek averages at least $18.17. The check happens weekly, and a good week cannot cover a slow one.
How is overtime calculated for tipped employees in Edgewater?
Overtime is based on the full city minimum, not the $13.50 cash wage. The OT cash rate = cash wage + 0.5 × $18.17, which is about $22.59 per overtime hour, plus tips.
How does Edgewater compare with Colorado and Denver?
Colorado's 2026 rates are $15.16 full and $12.14 tipped; Denver's full minimum is $19.29 per CDLE. Edgewater's $18.17 beats the state by $3.01 an hour on the full minimum and $1.36 on the tipped cash wage.