The impact of the Consortium of Cities' fragmented regional approach on minimum wage

The City of Boulder, a Consortium of Cities (COC) member, recently voted to increase its minimum wage, as shown in the table below. The increase is less than unincorporated Boulder County's minimum wage ordinance.

In contrast, the remaining COC members, including the cities of Longmont, Louisville, Lafayette, and the town of Erie, have either chosen not to pursue this matter, placed it on hold until 2025, or are still in deliberations.

In the summer of 2023, the five members of the COC-an organization that fosters interaction and communication among local governments and now includes non-voting representatives from Niwot-directed the Regional Minimum Wage working group to study Boulder County's regional economy, engage the community regarding a potential minimum wage increase, and work with ECOnorthwest, a consultant hired by the COC to prepare an economic analysis. The Left Hand Valley Courier has covered this extensively.

Gabi Rae, Communications and Community Engagement Director for the Town of Erie, said, "For Erie, the Council has decided not to pursue an increase in minimum wage at this time."

Sandra Seader, the City of Longmont's Assistant City Manager, when asked if the City of Longmont had changed its recent decision regarding minimum wage, responded, "They are still in deliberations. Thanks for checking in."

Debbie Wilmot, Communications Director for the City of Lafayette, said, "The Lafayette City Council is interested in additional engagement and analysis with Lafayette residents and business owners, particularly to determine the breaking point for businesses while also providing benefits to low-wage workers. This topic will be added to the 2025 work plan."

Grace Johnson, the City of Louisville's Communications Director, said in an email dated on Oct. 14, "The City Council has not scheduled any future meetings related to this topic at this time."

On October 14, the Left Hand Valley Courier contacted Ms. Gloria Handyside, Communications Director for the Boulder County Commissioners, to inquire whether Commissioners Loachamin, Levy, and Stolzmann plan to propose an amendment to Boulder County's minimum wage ordinance following the recent collapse of the Consortium of Cities' regional approach and the City of Boulder's recent minimum wage increase. As of October 19, Boulder County has not responded.

The table above presents a potential scenario based on three assumptions: Boulder County's minimum wage ordinance remains unchanged for unincorporated areas; the COC members, excluding the City of Boulder, opt to adhere to Colorado State's minimum wage, which as of 2024 is $14.42 per hour; and the Consumer Price Index (CPI) adjustment for Colorado's State minimum wage will be 2.7%. Currently, Colorado has the ninth-highest minimum wage in the country.

The table reflects current and potential future minimum wage disparities, which could lead to uneven wage distribution and disproportionate increased labor costs. This could harm small communities and industries throughout unincorporated Boulder County, including Niwot, Hygiene, Allenspark, Eldorado Springs, Gold Hill, and small local farmers.

A thriving regional approach could have resulted in uniform minimum wage schedules to foster a healthy environment for employers and employees; however, the regional approach appears fragmented, resulting in an inconsistent wage landscape.

This lack of uniformity could undermine the economic stability of small businesses in unincorporated Boulder County by placing small businesses at a competitive disadvantage and hindering their ability to survive.