Boulder County's minimum wage increasing for unincorporated communities

The Boulder County Commissioners announced a new hourly minimum wage within the geographic boundaries of Boulder County’s jurisdiction, impacting unincorporated towns, communities, and outlying areas while excluding incorporated cities or towns.

Ordinance 2023-4 became effective Jan. 1, 2024 with a $15.69 per hour minimum wage which is 15% above Colorado’s 2023 minimum wage and $1.27 higher than surrounding incorporated towns and cities. The minimum wage for unincorporated Boulder County will increase yearly, reaching $25 per hour by 2030, and thereafter increase in accordance with the Consumer Price Index.

Niwot is among the unincorporated towns, communities and outlying areas impacted by the ordinance. The others are Allenspark, Coal Creek Canyon, Eldorado, Eldorado Springs, Gold Hill, and Hygiene. The ordinance does not impact incorporated cities or towns, including Boulder, Erie, Jamestown, Lafayette, Louisville, Longmont, Lyons, Nederland, Superior, and Ward.

The commercial area of Gunbarrel was annexed by the City of Boulder, and thus is not affected by the increase. Businesses in the incorporated areas could be impacted if they send employees into the unincorporated areas and pay them less than the county’s minimum wage.

Unlike the incorporated cities or towns within Boulder County which have a separately elected town board or city council, the unincorporated communities of Boulder County are governed by the ordinances and regulations adopted by the Boulder County Commissioners.

There are concerns in the affected business community about how the measure affects competitive balance when local businesses compete with those in surrounding cities.

One Niwot business owner stated, “The businesses are very concerned. The county is trying to solve problems like affordable housing by using the wrong tool like minimum wage. The minimum wage was not meant to be a wage market setting, but a floor so people would not be taken advantage of. It could disrupt incentive pay, as many businesses may be unable to afford bonuses. Additionally, many businesses may not be able to afford to pay minors $25.00 per hour in 2030, removing an opportunity for these young people to not only make money but learn business skills.”

Another business owner noted that raising entry-level wages also requires businesses to bump up the wages paid to more experienced employees to fairly compensate them. Another owner wondered how his business could survive, saying his employees, with tips, already earn more than the owner.

Municipalities gained control to set minimum wage within their jurisdictions when the Colorado State Legislature passed HB10-1210. This allowed local governments to raise the minimum wage to 15% per year above their previous year’s minimum wage. In addition, it provides a tip offset of $3.02 per hour for those in the restaurant industry, allows for a 15% reduction of local minimum wage for unemancipated minors, and does not allow carve-outs of any business type. However, Boulder County’s ordinance does not include the reduction of the minimum wage by 15% for unemancipated minors.

Boulder County’s ordinance states that the county consulted with surrounding local governments and engaged with community stakeholders, including chambers of commerce, small and large businesses, businesses that employ tipped workers, workers, labor unions, and numerous community groups.

Engagements included three listening sessions with the Board of County Commissioners and an in-person town hall meeting held in Niwot on Thursday, Oct. 12, 2023, with the entire Board of County Commissioners, Marta Loachamin, Claire Levy and Ashley Stolzmann. The county announced that the meeting would focus on the effect of the increase, but very few business owners attended the meeting.

Bruce Warren, who did attend the meeting, was disappointed that only one speaker from the audience addressed the unfair effect of the increase on small businesses. Warren said, “The meeting was attended largely by well organized labor organization representatives who came ready to make their points in prepared statements. I tried to sign up to speak, but was told that there was no more time available, and I should send an email instead. I sent an email noting that the real issue the county needed to address, with the cities, was the lack of affordable or workforce housing in the county that their land-use policies have created. I’m still waiting for a response.”

The Niwot Business Association has established a task force to approach the county commissioners about the issue.

According to Boulder County, some of the reasons warranting this increase include the unprecedented demand for the county’s Family Resource Centers, inflation, and the rising cost of housing. Its PowerPoint slide six states, “A family of four needs the equivalent of four full-time minimum wage earners to provide the basics of life.” At $25 per hour, a household with two adult workers employed full time would earn $100,000 per year.

Many incorporated cities or towns, representing 92.4% of Boulder County’s population, are choosing not to align with the county’s ordinance, leaving the smaller unincorporated towns, communities and outlying areas, representing 7.6% of the population, at a disadvantage.

Boulder, Lafayette, Louisville, Longmont, and Erie officials have chosen a regional approach, noting that the minimum wage in any community impacts the regional economy. Boulder County has multiple towns and cities where employers and employees live, work and shop across various communities.

The incorporated cities plan on creating a community engagement model to work together to explore increasing the local minimum wage in their respective communities while considering a competitive minimum wage that meets existing and future needs. They are hosting presentations to gather feedback in early 2024 with the intent of rolling out a minimum wage program in 2025.

According to its website, Boulder County plans to track the incorporated cities or towns as they consider adopting a local minimum wage in 2025 and may consider other possible long-term wage proposals, such as Boulder County Government’s livable wage for their employees, currently at $22.44 per hour.

Until the incorporated cities or towns decide, the small unincorporated areas are paying a $15.69 hourly minimum wage, while the five cities or towns are paying $14.42 per hour.