A series of new labor and regulatory changes affecting Colorado restaurants will take effect starting January 1, 2026. These updates cover minimum wage increases, tip credit adjustments, service fee disclosure rules, inspection fee hikes, food truck licensing, price gouging regulations during emergencies, anti-discrimination penalties, and a possible expansion of the Restaurant Meals Program (RMP).
State and local minimum wages are set to rise at the beginning of 2026. A notable change comes from HB25-1208, which preserves the state’s $3.02 tip credit while granting local governments authority to increase their tip credits if they raise minimum wages above the state level. Edgewater is expected to be the first city to utilize this provision; if its ordinance passes on January 1, Edgewater’s tip credit will increase to $4.67 per hour alongside a new minimum wage of $18.17 in 2026. The higher tip credit would keep tipped workers’ minimum wage at $13.50 per hour.
Other legislative changes include HB25-1001, which expands enforcement for wage and hour violations by increasing penalties for noncompliance and broadening the definition of “employer.” The law also gives more investigative powers to state and local agencies.
Regarding mandatory service fees at food and beverage establishments, HB25-1090 allows these fees to continue without affecting menu prices but requires that such fees be clearly disclosed to customers along with an explanation of how they are used. “Mandatory service fees remain permitted but must be clearly disclosed, including how the fee is used,” according to the Colorado Restaurant Association (CRA). “Disclosures must be easy for customers to notice and understand; menu printing is not required.” The Attorney General’s office plans further rulemaking on this issue in 2026.
Retail food establishment license fees will also rise due to SB25-285: increases will roll out over three years—25% in 2026, followed by two consecutive years at 20% each.
For mobile vendors, HB25-1295 introduces a shared licensing system across cities and counties aimed at simplifying operations for food trucks while maintaining safety permit requirements.
HB25-1010 addresses pricing during declared emergencies by prohibiting restaurants from raising prices on essential goods or services more than 10% above their average over the previous ninety days unless increased costs can justify it.
Penalties for disability-related discrimination have been raised under HB25-1239 from $3,500 to $5,000 per violation under the Colorado Anti-Discrimination Act.
Finally, Colorado intends to apply for participation in the Restaurant Meals Program (RMP) with the USDA on January 1. If approved by federal authorities in an unspecified timeframe, eligible SNAP recipients could buy hot prepared meals at participating restaurants.
The CRA has reminded members that they can access free monthly legal consultations regarding these changes by contacting info@corestaurant.org.
