In 2024, Denver City Council unanimously passed the Denver Labor subpoena power bill that gives the Auditor’s Office the tools it needs to get information from private employers who do not voluntarily cooperate during wage theft investigations. By having a collaborative tool like this, the Auditor’s Office can seek faster resolution and payment on behalf of workers, while limiting the burden for businesses.
In 2024, Denver Labor closed its reporting year with more than $2 million in restitution and helped more than 4,500 workers, a new record number. These results translate to more people being able to pay their bills, support their families, and contribute to our communities.
“Through enforcement and education, we help workers of all income levels receive the wages they earned according to law,” Denver Auditor Timothy M. O’Brien, CPA, said. “We also help ensure a level playing field for Denver’s vibrant business community.” The citywide minimum wage rate will increase from $18.29 per hour to $18.81 per hour on Jan. 1, 2025. Employers can still claim up to $3.02 in tip credits per hour for qualified food and beverage workers, provided employers can show documentation of at least that amount in actual tips received.
Working with businesses and the community
Educating and engaging with the business community is the first step in successful enforcement. Workers, well-intentioned employers, and Denver Labor would all prefer workers to be paid correctly from their first paycheck.
“Wage theft harms the whole community. Lost wages mean money that is not going back into Denver’s economy through food and other grocery purchases, paying for shelter, and supporting local businesses. It also reflects an extraordinary amount of money in unpaid taxes and insurance premiums that support the work of the city and the key social safety net programs we all rely on,” Denver Labor Executive Director Matthew Fritz-Mauer said. While Denver Labor is a national leader in protecting against wage theft, a new study published by Workplace Justice Lab@Rutgers University found at least 45,000 workers a year were paid below the minimum wage in the Denver metro area from 2007 through 2022 — with the numbers sharply increasing since 2020.
According to the research, which was requested by the Denver Auditor, minimum wage violation rates are highest in private households, food services and drinking places, personal and laundry services, accommodation, retail trade, and administrative support, among others — all industries Denver Labor has investigated previously.
Successful restitution cases
Denver Labor’s goal is to protect Denver’s employers and employees and ensure everyone is paid according to the law. We deter wage theft, reduce the harms of poverty, and expand economic justice through comprehensive wage and hour enforcement and education.
The food and beverage industry is at high risk of underpayments because of errors when applying the tip credit. Recently, we found a local restaurant in Denver did not pay the correct minimum wage for its tipped employees. Our office educated the employer on how to calculate the tip credit for each qualified position since the Citywide Minimum Wage Ordinance came into effect. The employer worked with our office to correct the violation, and our team recovered a restitution of $81,763.46 for 18 employees.
In 2024, we also found some instances in which workers were not receiving a base pay. In one case, Denver Labor received an online complaint because a local flooring company failed to pay Denver’s minimum wage to commission-only employees. After issuing our determination, the business proactively returned $57,165.20 in restitution to three workers to meet Denver’s minimum wage requirements.
As part of our active enforcement efforts, Denver Labor also investigated a nail salon and found the business had misclassified its workers as commission-based workers, the business did not have a commission policy or agreement in place, and the percentage of commission received by workers did not meet Denver’s minimum wage requirements. Additionally, the salon failed to maintain records of the hours worked. Denver Labor calculated wages owed to workers based on a 40-hour work week of “peak and off-peak” hours and recovered $40,573.51 for seven workers.
Read more restitution stories like these on our website DenverGov.org/Restitution. If you or someone you know might have been underpaid at work, we might also have a check waiting for you. Go to our “Are You Owed Money” page to see if you, a family member, or a friend’s name is on our list.
Denver's unpaid wages recovered by the labor divisions of the Denver Auditor's Office. In 2024, Denver Labor recovered $2,070,153, a record amount of restitution on behalf of workers.
ACTION POINT
Sign up for All workers in the City and County of Denver are protected by the city’s wage laws regardless of their immigration status. Complaints can be anonymous. We encourage community groups to advocate for their members and partner with us to begin investigations. Visit our website to find resources, like a minimum wage calculator and downloadable, multilingual, mandatory workplace posters, that help both workers and businesses navigate the city’s wage ordinances. Go to DenverGov.org/ DenverLabor for more.