Saving Colorado’s Restaurants: Why HB25-1208 Is Crucial for Our Local Economies and Jobs

This past week, I voted in favor of House Bill 25-1208 in the Business Affairs & Labor Committee, and I intend to support it again when it reaches the Finance Committee - barring any amendments that fundamentally alter the bill’s purpose. My decision is grounded in one simple truth: Colorado’s restaurants are struggling to survive under the weight of escalating labor costs, and they need relief now.

As the backbone and lifeblood of local economies, including here in Castle Rock, our restaurants operate on razor-thin profit margins - often 1% or less. Without financial relief, many of these small businesses will face bankruptcy, resulting in significant job losses and economic decline for our communities.

The Reality Facing Our Restaurants

The COVID-19 pandemic devastated the restaurant industry, and now, just as they are beginning to recover, escalating labor costs are threatening to finish the job. Several municipalities across Colorado have enacted minimum wages that far exceed the state standard, leaving restaurant owners scrambling to cover payroll without raising prices to levels that drive customers away.

Meanwhile, these businesses continue to battle soaring costs for food, rent, and utilities - all while their profit margins hover at or below 1%. For many of these small business owners, the difference between staying open and shutting down for good boils down to whether they can manage labor costs effectively.

That’s where HB25-1208 comes in. The bill proposes a sensible adjustment to the tip offset for food and beverage employees in areas with higher local minimum wages. By aligning the tip credit more closely with local wage levels, this bill would offer restaurants the flexibility they need to manage payroll expenses without reducing tipped workers’ overall earnings.

The reality is that tipped employees in Colorado often earn well above minimum wage once tips are factored in - sometimes more than double. HB25-1208 would simply allow restaurants to balance their books without gutting their workforce or hiking prices to unsustainable levels.

Financial Relief Is Not Just About Businesses - It’s About Jobs

Some opponents of this bill argue that it would hurt tipped workers by reducing their base wage. This argument misses the point entirely. When restaurants close, all employees - tipped or otherwise - lose their jobs. The financial relief offered by HB25-1208 is a lifeline to the thousands of small businesses that employ tens of thousands of Coloradans.

Without it, we risk seeing a wave of restaurant closures that would devastate not only our local economies but also the livelihoods of those who depend on these jobs.

Furthermore, HB25-1208 addresses the need for a more standardized wage structure across the state. Right now, businesses operating in multiple municipalities face a confusing patchwork of wage regulations, making compliance an administrative nightmare. This bill offers a more uniform approach, providing clarity and predictability for employers who already have enough to manage without being forced to navigate a maze of conflicting wage requirements.

Preserving Local Control While Ensuring Survival

Opponents have also claimed that HB25-1208 undermines local control. I strongly disagree. Local governments will still have the authority to set higher minimum wages if they believe it’s necessary. What this bill does is ensure that those decisions do not bankrupt the very businesses that keep our communities vibrant and provide employment to thousands of residents. Supporting our local economies and preserving jobs must be our priority - especially when it comes to small businesses that are already hanging by a thread.

Castle Rock: A Community at Risk

In my own district, restaurants are a cornerstone of Castle Rock’s economy, drawing locals and visitors alike and creating a ripple effect that benefits countless other small businesses. When a restaurant closes, it’s not just the owner and their employees who suffer - the entire local economy feels the impact. For every restaurant that shutters, we lose jobs, tax revenue, and the sense of community that these businesses provide. If we do not act to provide meaningful financial relief, we risk transforming our Main Streets into ghost towns.

Moving Forward

I voted yes on HB25-1208 because it is a practical solution to a pressing problem. This bill is not about taking sides in a battle between businesses and workers - it’s about ensuring that both can survive and thrive. I will continue to support this bill in the Finance Committee, provided that no amendments drastically alter its intent. In the meantime, I urge my colleagues and constituents to consider the real-world consequences of doing nothing. When our local restaurants thrive, so do our communities.

Supporting HB25-1208 is not just about saving businesses; it’s about preserving jobs, maintaining local economies, and ensuring that Colorado’s recovery doesn’t leave our small business owners behind. 

That’s why I stand firmly behind this bill - and why I believe you should too.