A series of new labor and regulatory laws affecting restaurants in Colorado will take effect on January 1, 2026. These changes address minimum wage increases, enforcement of wage and hour rules, service fee disclosures, inspection fees, food truck licensing, price gouging during emergencies, anti-discrimination penalties, and the Restaurant Meals Program.
One major change involves the implementation of new state and local minimum wages. House Bill 25-1208 preserves the existing $3.02 tip credit statewide but allows local governments to increase their own tip credits if they set a higher minimum wage than the state. Edgewater is expected to be the first city to apply this provision; if its ordinance passes as planned on January 1, Edgewater’s tip credit will rise to $4.67 per hour. This means that while Edgewater’s overall minimum wage will increase to $18.17 in 2026, tipped workers’ base wage will remain at $13.50 per hour.
Restaurants are advised to monitor both state and local updates regarding minimum wages and adjust their pay rates accordingly.
House Bill 25-1001 expands enforcement related to wage and hour compliance by increasing penalties for violations, broadening the definition of “employer,” and granting greater investigative authority to state and local agencies. The law also strengthens actions against worker misclassification.
To comply with these requirements, restaurant operators should regularly review payroll practices and ensure all employees are paid at least the minimum wage.
Another significant update comes from House Bill 25-1090 regarding mandatory service fees in restaurants. The Colorado Restaurant Association (CRA) advocated for amendments that allow these fees to continue without affecting menu prices. According to the CRA: “Mandatory service fees remain permitted but must be clearly disclosed, including how the fee is used.” Disclosures need to be visible and understandable for customers but do not require menu printing.
The Attorney General’s office is expected to finalize rulemaking for this law in 2026. The CRA stated it will keep members informed about developments.
Senate Bill 25-285 introduces increased inspection fees for retail food establishments over three years—by 25% in 2026, followed by additional increases of 20% each in 2027 and 2028. Restaurants are encouraged to budget for these higher costs when planning expansions or remodels.
For food trucks operating across city or county lines, House Bill 25-1295 establishes a streamlined licensing system while maintaining safety permit requirements and allowing continued local regulation.
House Bill 25-1010 prohibits price increases exceeding ten percent above pre-emergency averages during declared emergencies unless justified by rising costs or supply disruptions. Detailed records are recommended for any price adjustments made under such circumstances.
Penalties for disability-related discrimination under the Colorado Anti-Discrimination Act have been raised through House Bill 25-1239—from $3,500 up to $5,000 per violation—though what constitutes discrimination remains unchanged.
Finally, Senate Bill 25-169 authorizes Colorado’s application to join the federal Restaurant Meals Program (RMP). If approved by the USDA after submission on January 1, eligible SNAP recipients could buy hot meals at participating restaurants; no specific timeline has been announced yet.
Restaurant owners with questions about these regulations can access monthly legal consultations through their CRA membership or contact info@corestaurant.org for further guidance.
