2025 Annual Wage Theft Report

Wage theft occurs whenever a worker is denied the wages or benefits they are legally entitled to under local, state, and federal law, or any applicable contracts, rules, regulations, or enforceable standards.

Every year, tens of thousands of Denver-area workers lose hundreds of millions of dollars because of wage theft.

When people are denied their earned wages, they face unfair choices between paying rent or purchasing food, prioritizing the heating bill or the water bill, or even whether to get health care treatment when sick or injured.

Denver Labor aims to protect Denver’s workers and employers to ensure everyone is paid according to the law.

Denver Labor is a division of the Denver Auditor’s Office and enforces the Minimum Wage, Civil Wage Theft, and Prevailing Wage ordinances. We audit 100% of certified payrolls involving prevailing wage requirements and we investigate 100% of wage complaints.

We educate workers, businesses, and the community about Denver’s wage and hour laws fairly and thoroughly, using the most effective tools and strategies available.

Our labor compliance technicians and analysts are highly skilled, multilingual, and bring a variety of work experiences to form a well-rounded division.

2025 was a monumental year involving strip club workers and wage theft. As the adult entertainment industry is wrought with wage theft, we expanded our investigations into Denver's strip clubs.

Strip club owes nearly $14 million

We ordered Diamond Cabaret and Rick’s Cabaret — both owned by RCI Hospitality Holdings Inc. — to pay $13,958,000 in restitution and penalties after we found more than 230 workers, like entertainers, bartenders, and servers, were victims of wage theft.

These clubs misclassified entertainers as exempt from wage and hour laws while strictly controlling their work, leading to widespread minimum wage violations. Club owners required workers to pay up to $140 in “house fees” and $8 in “promo fees” per shift, while managers illegally took portions of tips. Added violations included mandatory unpaid performances, fines for missed sets, and destruction of wage records. This investigation set Denver Labor records for the most workers helped, the largest restitution owed, and the highest penalties enforced for a single case.

Adult entertainers are workers

In late 2025, Denver District Court ruled strip club entertainers are workers who have protections under Denver’s wage and employment laws. The strip clubs argued entertainers are “licensees” — not employees, independent contractors, or workers — and are not subject to a Denver Labor wage investigation. We saw this as an attempt to operate beyond Denver wage laws and deny a group of people their basic workplace rights. A hearing officer found in Denver Labor’s favor, affirming the fines, ruling that Denver Labor can investigate the strip clubs, and upholding the subpoenas. The clubs appealed again, but a Denver District Court judge affirmed the hearing officer’s decisions.

We encourage anyone experiencing wage theft in the adult entertainment industry to file an anonymous complaint at DenverGov.org/StripClub.

Denver Labor made strides in helping people who use gig apps to find work. Gig work generally involves short-term or flexible assignments performed by people who, in many cases, are unlawfully misclassified as independent contractors. It is an industry where the risk of wage theft is high.

GigSmart does the right thing

We found workers on GigSmart’s platform were misclassified as independent contractors, and not earning benefits like overtime, paid leave, and workers’ compensation. After we investigated, GigSmart committed to ensuring legal pay. We recovered over $22,000 in wage underpayments, plus $4,500 in interest. Although the hiring businesses could have been held liable, GigSmart voluntarily took full responsibility — announcing that beginning April 2025 all Colorado gig workers using its platform would be classified as W-2 employees, guaranteeing minimum wage, overtime, paid sick and safe leave, unemployment insurance, and workers’ compensation coverage.

Settlement with Veryable

We also found worker misclassifications with Veryable. It misclassified workers as independent contractors. After our investigation, we settled with Veryable and enforced the rights of more than 1,500 people. Veryable agreed to pay $100,000 in restitution and fines, reclassify all employees statewide, follow all employment laws moving forward, and create a paid sick leave bank.

Our team of wage analysts discover theft across various industries and workplaces. If workers are underpaid according to the law, we will investigate their case.

Entertainment company pays $5,000 in fines after wage theft and retaliation

An AMC Theaters worker was disciplined for not finding a shift replacement when they called in sick, violating Colorado’s Healthy Families and Workplaces Act. The employer also did not pay the worker’s accrued paid sick leave. We found these actions were wage theft and retaliation. We ordered the employer to pay restitution, interest, damages, and penalties.

Restaurant workers recover $70,011 after minimum wage violation

After Denver Chophouse closed its airport location, a worker reported not receiving a final paycheck. Through our investigation we also found the employer continued paying 2024’s minimum wage rate into 2025. As a result, we recovered wages for 44 workers.

Misclassified employees receive $185,539 at airport

We received a wage complaint about workers on a duct and coil cleaning services contract at Denver International Airport. Workers were misclassified and paid the common laborer rate. We confirmed the employees were misclassified and significantly underpaid. We recovered wages for 24 employees.

Contractors using apprentices must enroll them in an approved apprenticeship program registered with the U.S. Department of Labor. Contractors must follow the 1:1 ratio requirement for apprentices — one journeyman for each apprentice. If the ratio is not met, underpayment is possible.

Nearly $45,000 recovered after contractor did not meet apprenticeship requirements

During a review of a prevailing wage hotel project, we noticed Befort Plumbing & Heating often listed workers as apprentices. We requested federal certificates to confirm the apprenticeship status of its workers. Instead, the company provided state of Colorado certificates and followed a 1:3 ratio, which does not meet Denver’s requirements. Although the company corrected the issue, we found four apprentices had been misclassified for most of the project and we recovered restitution

Denver Labor uses an education-first approach to ensure employers and workers understand their legal rights and obligations.

Our efforts allow us to reach all parties involved in wage compliance across the city.

In 2025, we took part in meetings and trainings with 21 nonprofits, consulates, and community groups. We partnered with El Centro de los Trabajadores and trained organizations such as Justice and Mercy Legal Aid Center and Denver Housing Authority. We also educated small business owners, union interns, and young people entering the workforce.

Registered Neighborhood Organizations hosted us, and we explained how Denver Labor reduces wage theft and supports both workers and compliant businesses. Our team also took part in 18 industry and family-oriented events — like the Colorado Restaurant & Bar Show, Future Fest, Cinco de Mayo, PrideFest, Global Fest, Black Arts Festival, and several back-to-school events, providing informational materials and direct access to our staff.

We use social media to send out information. Our monthly “Wages Wednesday” presentations on Facebook help city contractors, small businesses, and workers better understand wage ordinances. In our “Ask the Auditor” video series, we address topics including how our office supports small businesses, wage theft in the gig economy, and how to prevent misclassification.

Our minimum wage advertising campaign generated an estimated 51,684,290 impressions across digital, radio, print, television, and out-of-home platforms.

Our educational initiatives are designed to inform, remove barriers and serve as the primary, trusted source of information on wage protections in the city.

Media coverage is essential to advancing Denver Labor’s mission. Through trusted news outlets, information about wage laws, enforcement actions, and worker protections reach broad and diverse audiences.

Local news coverage reinforces transparency and accountability, while helping both workers and employers understand their rights and responsibilities. It also signals that compliance matters and standards are actively upheld. Importantly, media coverage shows people are paying attention to Denver Labor’s efforts.

Notable news headlines

• Denver Post: “Two Denver strip clubs must pay nearly $14 million in back pay and penalties to workers, auditor rules”
• 9News: “Judge rules Denver strip club entertainers have wage protections.”
• Axios: “Scoop: Which Denver businesses paid the most in wage restitution”
• CBS Colorado: “Denver Labor recovers $2.3M in unpaid wages for workers.”
  
  

Social media provides Denver Labor with a direct and accessible way to engage the public. It allows timely updates, educational content sharing, and responsive interaction in both English and Spanish. Through social platforms, workers can learn about their rights, employers can access guidance, and community partners can stay informed. This consistent presence increases transparency, strengthens trust, and ensures people pay attention to Denver Labor’s work.

Social media highlights

• Facebook: Threatening immigrant workers about their immigration status is illegal.
• Facebook: Information and resource table at the Mexican Consulate.
• Instagram: Judge rules against strip club owners.
• Instagram: Denver District Court ruled that strip club entertainers are classified as workers.
• Instagram: 2026 minimum wage campaign.
• Instagram: Wage Justice Champion Award.

Social media posts in 2025

• Facebook: 251.
• Instagram: 214.
• LinkedIn: 46.
• Nextdoor: 43.

Our work this past year shows what government can accomplish when it is responsive to workers’ needs. Most people who benefit from Denver Labor’s work are unlikely to enforce their own rights. Many cannot hire a lawyer, are prohibited from going to court by mandatory arbitration agreements, or think taking action would be futile.

In Denver, all workers have rights that matter. We will continue to prove that in the years to come through outreach, education, proactive investigations, and fearless litigation.

Matthew Fritz-Mauer, Esq., PhD
Executive Director of Denver Labor