Denver Labor works with both businesses and workers to resolve wage compliance issues in ways that work for everyone. We take an education-first approach to wage law compliance and enforcement. Denver Labor works to foster community relationships with businesses and labor organizations and educate our diverse community on labor issues. We audit 100% of certified payrolls and investigate 100% of wage complaints. This report serves as our required annual minimum wage report.

The Denver City Council passed a local minimum wage ordinance on Nov. 25, 2019, and the citywide minimum wage took effect on Jan. 1, 2020. In 2021, the ordinance set the hourly citywide minimum wage at $14.77 per hour.

In 2022, the ordinance requires that wage rate to increase to $15.87 per hour. Both the separate minimum wage for city contractors and the prevailing wage rate still apply as determined by law. Employers must pay the greatest applicable wage rate for any work performed in the city or on city projects.

In November 2019, the Denver City Council created Denver Revised Municipal Code Chapter 58-16, which sets the local minimum wage for Denver and prescribes the means for setting, enforcing, and complying with the new local minimum wage.

In 2021, our team of skilled minimum wage analysts increased community awareness and compliance with Denver’s minimum wage. They demonstrated leadership and innovation as they found new ways to engage some of the most vulnerable workers in our community. Denver Labor Executive Director Jeffrey Garcia and our team of analysts used our complaint-based system to investigate possible underpayments and track important data to pinpoint some of the most at-risk workers and industries.

The citywide minimum wage was $14.77 per hour, with few exceptions. Denver Labor’s goal is to protect Denver’s employers and employees and ensure everyone is paid according to the law.

Our office believes education for both employers and the public is the key to a successful citywide minimum wage ordinance. This year, we held nearly 50 live training sessions on Facebook — called “Wages Wednesday” — related to all of Denver’s wage laws, what the laws mean for employees and employers, and how they can stay in compliance. We made these virtual trainings accessible by conducting them in both English and Spanish and by making our bilingual staff available to answer questions in either language. Despite the COVID-19 pandemic, we continued to hold virtual events, community meetings, and training sessions throughout the year.

We also offer several useful tools for both employers and employees on our website — including a regional address finder to help determine whether work performed was in the boundaries of the City and County of Denver, a minimum wage and tip calculator, an employer underpayment calculator, a tips tracker for the food and beverage industry, and complaint forms in English and in Spanish.

This year, our “Earned It, Deserved It” campaign reached people across the city in new ways and led to a significant increase in engagement and awareness in the community. The campaign depicted workers and their supportive employers successfully working together by following the city’s minimum wage ordinance. We used digital ads, ads at regional  bus stops, radio, television, and social platforms to reach people in their homes and communities in both English and Spanish.

The contractor minimum wage rate — which impacts city employees and contractors especially at the airport — increased on July 1, 2021, to $15 per hour and will go up again on July 1, 2022, based on the Consumer Price Index. Workers covered by the contractor minimum wage work on city projects in concessions, catering, maintenance, ramp and cargo work at the airport, hospitality, security, and other jobs on city property.

This complex graphic shows the wage rates timeline in dollars per hour, split over three rows.

Row one shows the Denver Citywide Minimum wage. This wage was $14.77 per hour beginning January 1, 2021; $15.87 per hour beginning January 1, 2022; $and will be $15.87 per hour plus the Consumer Price Index in 2023.

Row two shows the Denver Contractor Minimum Wage. This wage was $15 per hour beginning July 1, 2021; $15 plus the Consumer Price Index beginning July 1, 2022, and the 2022 wage plus the Consumer Price Index beginning July 1. 2023.

Row three shows the Prevailing Wage which is determined by the Denver Office of Human Resources and is a series of wages based on job classification.

Local Restaurant Pays $18,000 in Returned Wages
An underpaid employee from a local restaurant in Denver reached out to us by submitting a wage complaint. We discovered their employer had not paid the required citywide minimum wage rate in 2020 and 2021.

After working with our analysts, the restaurant reacted quickly and returned nearly $18,000 to 20 employees. Once more, this story showcases the willingness of local businesses to collaborate with our team and do what’s right for their workers.

In 2021, Denver’s mayor prioritized bond projects and construction as part of the city’s effort to encourage economic recovery from pandemic-related shutdowns. The Auditor’s prevailing wage team works with both contractors and workers on all Denver projects to ensure compliance and payment according to the law. We have enforced prevailing wage requirements in

Denver since the 1950s. Contractors and subcontractors doing work at or in connection with the operation of any public building or doing public work on behalf of the City and County of Denver must pay their workers the prevailing wage. By revamping the city’s prevailing wage ordinance in 2016, Auditor O’Brien changed the way Denver does business on all projects and changed how work is performed on city property. Now, his growing team works to bring all parties together to make Denver a good, efficient place to work.

Prevailing wage is required on contracts of $2,000 or more for construction, improvement, repair, maintenance, demolition, or janitorial work. Through education, outreach, and investigation, our prevailing wage team works with both employers and employees. Our work helps support businesses in compliance with the law and we strive to put city funds into the hands of contractors and workers as quickly and efficiently as possible.

Wage reporting software, easy-to-use tutorial videos, and public question-and-answer sessions help streamline the process. Our analysts work with employers to ensure employees are classified correctly, and we also work with employers to guide them through the reporting process.

We can accommodate training and event requests in English and Spanish, both virtually and in person. In Denver’s increasingly competitive job market, both employers and employees win when companies offer wages at least in line with the law. Employers ensure positive customer experiences, successful business models, and stability in their workplace by paying their workers according to the law.

Here are some examples of how we worked with both employers and employees this year to recover unpaid wages in accordance with the prevailing wage ordinance:

Cooperative Contractor Returns Nearly $86,000 to Employees
A contractor performing custodial work at the Denver Zoo significantly underpaid its employees, resulting in $85,826.48 owed to 21 employees. The contractor started performing the custodial work at the Denver Zoo before the Auditor’s Office discovered that neither the contract nor the contractor had been set up in our compliance software. The contractor had not submitted certified payroll records for our review, and the underpayments were the result of the contractor paying its employees less than the custodian prevailing wage. The contractor cooperated and issued restitution checks expeditiously.

Our teams use the highest standards on every audit assignment and wage investigation. In 2021, we successfully adjusted to a hybrid work environment in response to the COVID-19 pandemic, and refocused our priorities to support the city’s recovery efforts. Our monthly Audit Committee met virtually throughout the year and we did both in-person and virtual trainings for employers and community groups throughout the city.

In 2021, we also took action to encourage diversity, equity, and inclusion in all divisions of the office. Our emphasis on equity is a planning consideration in every audit we do. One of our first planning steps in the audit process is to consider risk for inequity in the agencies, programs, and systems we examine. We held listening sessions with our staff this year to talk about equity in the workplaces and in our community. As a result of those listening sessions, we created an inclusive language guide to help ensure the words we choose in our writing are representative and inclusive of our entire community.

Together, we served the people of Denver through thoughtful auditing, investigations, and hard work, even in the face of adversity caused by the COVID-19 pandemic. Auditor O’Brien is a certified public accountant with more than 40 years of auditing experience. He recognizes the importance of professional development, of continuous learning throughout a career, and of serving the community in the office and beyond. Auditor’s Office team members met high standards again this year through continued professional learning and achievements, industry conferences, staff presentations, involvement in professional organizations, and community contributions.

Audit Services, under the leadership of Auditor O’Brien and Deputy Auditor Valerie Walling, completed impactful, substantive work on behalf of the people of Denver. Our office integrated the auditing specialties and experience of all our auditors, along with Audit Directors Katja Freeman and Dawn Wiseman, to ensure the quality and impact of our work. We completed performance, financial, information technology, data analytics, and compliance audit work. Our teams diligently provide in-depth analysis of city systems, programs, contracts, finances, and processes, depending on the objectives of each audit. We work to achieve our annual Audit Plan goals using comprehensive risk assessments, with an emphasis on equity, efficiency, and effectiveness.

In 2021, we were honored to receive the top auditing award in the U.S. and Canada for local governments of our size. The Association of Local Government Auditors recognized our team with an Exemplary Knighton Award for their work on the 2020 audit of the Neighborhood Sidewalk Repair Program(PDF, 8MB)  — an audit still impacting our community today. Awards like this are important because they let the public know they can trust the work we do on their behalf. The prestigious Knighton awards recognize the best work from government auditing offices each year. Top award winners must show their work had a potential for significant impact in the community; that the audit has persuasive, logical, and firmly supported conclusions; that recommendations will make government programs more efficient and effective; and that the report uses clear and concise communication.

Winners of the award must also show they use appropriate research methods and tools and that they are responsive to the needs and concerns of decision-makers and the public. The audit team members who earned recognition for this award-winning audit through their intensive efforts were Audit Director Katja Freeman, Audit Manager Kharis Eppstein, Lead Auditor Shaun Wysong, Senior Auditor Darrell Finke, Associate Auditor Daniel Summers, and Associate Auditor Megan Kelly.

Our office had four members who volunteered to serve on and participate in the Association of Local Government Auditors governing committees. Deputy Auditor Valerie Walling served on the Awards Committee; Audit Director Katja Freeman was chair of the Professional Issues Committee; Audit Director Dawn Wiseman was vice-chair of the Professional Issues Committee; and Reporting Specialist Kristen Clark served on the Diversity, Equity, and Inclusion Committee and became the association’s deputy communications liaison.

Members of our auditing division participated in professional conferences remotely to further their education and expertise. Members of the audit teams also presented at national conferences, including Dr. Samuel Gallaher, who is an audit analytics manager; Audit Analytics Lead Robert Persichitte; and Information Systems Audit Manager Jared Miller presented at the Rocky Mountain Area Conference on their innovative cybersecurity and audit analytics work.

Our auditors’ expertise and knowledge are valuable to auditors across Colorado, the United States, and internationally, and we are happy to share our experience with our peers and support the progress of government auditing. Our data analytics and continuous auditing techniques are some of the most advanced in the country, and we are proud to continue to develop more efficient ways to monitor city risks.

Auditor O’Brien, Denver Labor Executive Director Jeffrey Garcia, and the labor team had a year of growth and significant impact in 2021.

The Denver Labor team continues to build relationships in the community to encourage employers to pay employees according to the law. Members of the team stepped up to provide weekly trainings in both English and Spanish, allowing for an inclusive and accessible dialogue about the city’s processes.

This year, Denver Labor took in more minimum wage complaints than ever and investigated 100% of cases. We worked cooperatively with employers to find resolutions to wages not paid in accordance with the law.

Our analysts audited 100% of certified payrolls for prevailing wage. Read more about the excellent work this team accomplished in our Denver Labor Wages Report section.

Our staff comprises many talented, well-educated, and hard-working people. This year, our team worked to improve their work, themselves, our office, and our industry. Deputy Auditor Valerie Walling served as a member of the Jefferson County Audit Committee and on The Institute of Internal Auditors’ Denver board.

Audit Manager Kharis Eppstein completed her studies this year to become a Certified Internal Auditor. Auditor O’Brien encourages all staff to continue their education and obtain professional certifications to show the high level of professionalism and qualification in our work. Eppstein also served her community this year by becoming the elected board president for the Alpine Rescue Team.

Our Safety Committee helped keep members of our office safe and healthy this year with the leadership and support of committee members Kharis Eppstein, Edyie Thompson, Rafael Gongón, Vilma Balnyte, Darrell Finke, Nick Jimroglou, Tyson Faussone, and Daniel Summers.

Our New Employee Onboarding Committee worked this year to welcome new employees into a hybrid virtual work environment. Committee members included Edyie Thompson, Emily Owens Gerber, Kharis Eppstein, Valerie Walling, Tayler Overschmidt, Katja Freeman, John Danilenko-Dixon, Cyndi Lubrano, Kristin McCormack, Nick Jimroglou, Dawn Wiseman, and Tammy Phillips.

Our Events Committee kept our office connected even from home by organizing virtual gathering opportunities. Finding ways to maintain positive relationships and a strong team was more important than ever this year, since our team couldn’t stay in touch in person. Thanks to committee members Rafael Gongón, Cyndi Lubrano, Anna Hansen, Cody Schulte, John Danilenko-Dixon, Sara del Valle Ruiz, Kristin McCormack, Megan O’Brien, Brandon Stolba, and Shaun Wysong for your fun ideas and organization.

Learn more about staff here

The Audit Services Division produces independent financial and performance audits and other types of assessments of city agencies, programs, finances, technology, grants, and contracts. The resulting recommendations from these efforts help strengthen governance, improve performance, enhance efficiency, increase revenues, reduce costs and risks, and improve the quality of services for Denver.

Performance audits review the efficiency and effectiveness of agencies’ work, as well as the overall use of Denver tax dollars. Financial audits take a close look at an agency’s records and processes, or a grant program’s oversight and compliance, to identify errors in reporting and payments and other risks to the city and its reputation. Meanwhile, contract compliance audits determine whether a third-party vendor — and/or a city agency — is following the terms of a contract. Information technology audits and cybersecurity assessments review the controls and operation of the city’s network, software applications, and cybersecurity processes to make sure they are operating correctly.

Key audits completed this year included a report calling for better clarity about who owns and is responsible for certain assets at the Denver Art Museum. We were unable to complete all aspects of the audit due to restrictions placed on our access to key information. We also analyzed how the city monitors equity in pay for city employees but found city managers are not tracking data in a format that allows comprehensive and regular reviews.

An audit of Denver’s Parks Legacy Fund found the city is behind on maintenance, even as management purchases more land and staff is insufficient to keep up with park needs. And we made recommendations to help the Clerk and Recorder’s Office better maintain and protect residents’ personally identifiable information and historical documents.

We completed several cybersecurity assessments to help city agencies strengthen their protections against hackers. And we conducted several contract compliance and construction audits to help track how taxpayer dollars are used by third parties — where we found a need for better oversight.

A follow-up assessment is performed after the last implementation date given by agencies in response to recommendations in each audit. The follow-up reports confirm whether the agreed-upon recommendations were in fact implemented. We follow up on every audit to see whether our findings of important risks are effectively mitigated and providing constructive impact.

Our continuous auditing and data analytics programs help identify high-risk areas of the city by repeatedly performing updated analyses of transactional data from different city databases. Using automation, we sort through thousands of data entries, rather than rely only on a random sample. This helps inform our risk assessments for current or future audits and can help us focus on areas of higher concern. The resulting reports provide us with timely feedback of anomalies or outliers in the city’s processes and transactions.

Auditor O’Brien also contracts with professional service firms to provide third-party audits and engagements where specialized expertise is needed, such as in a particular industry or technical discipline. This is an efficient way to complete specialized work such as cybersecurity audits or actuarial work, among other areas of focus. Hiring these firms on a contract basis allows our office to expand its range of audits while using taxpayer funds prudently.

Our annual Audit Plan — which includes many different types of engagements intended to address key risks to the city — is compiled based on risk assessments of city agencies, input from community members, information from city leaders, current events, regulatory changes, and other factors. You can read the 2022 Audit Plan here.

You can read all 2021 audit reports on our website.

Auditor O’Brien is the chairman of the independent Audit Committee, which meets monthly. The other six members of the committee are appointed to staggered four-year terms. The members and their appointing authorities are listed below. Members are appointed based on their education or experience in accounting, auditing, financial management, or related fields.

The primary responsibility of the Audit Committee is to commission an annual independent external audit of the city’s finances. The Audit Committee also receives the results of audits, assessments, and examinations performed or commissioned by the Auditor’s Office’s Audit Services Division — as well as the results of annual external audits.

In addition to audits of the Annual Comprehensive Financial Report and the single audit report of major grant programs, external audit firms audit Denver International Airport and the Wastewater Management Enterprise Fund, which are city enterprises. An external firm also audits the Deferred Compensation Plan Trust Fund.

All audit reports and committee meeting minutes are published, and committee meetings are televised on Denver 8 TV. Audit Committee meetings were virtual in 2021 thanks to the hard work of our audit teams, the Audit Committee members, and the team at Denver 8 TV.

Audit Committee Members

The City and County of Denver enters into thousands of contracts every year. The Denver Charter mandates Auditor O’Brien review and sign every city contract to ensure any liability incurred, any money disbursed, or any property disposed of is done so according to the law.

Auditor O’Brien believes progress in the city should not be held up by processes and paperwork. As a result, he works to get contracts signed more quickly while still ensuring a thorough review.

Denver contracts can range from low-dollar agreements to multimillion-dollar technology purchases or construction projects. The Auditor’s Office continues to perform contract compliance, financial and specialty audits, evaluations, and assessments to monitor these contracts. Auditor O’Brien believes the city has a responsibility to keep a close watch on contracts to confirm third parties uphold their agreements and spend taxpayer dollars as promised.