Denver city leaders have extended the phase-in time for their nearly $16-an-hour minimum wage proposal to soften the blow on small businesses.

Employers in the city would have to begin paying hourly employees at least $12.85 on Jan. 1, with another bump to $14.77 at the start of 2021 and the final increase to $15.87 at the start of 2022. The earlier proposal floated by Mayor Michael Hancock’s office included a two-step phase-in, starting at $13.80 on Jan. 1 and increasing to the final amount a year later.

The change was announced by Hancock’s staff Monday as the legislation was introduced by Councilwoman Robin Kniech. Hearings are set to begin this week.

City-organized meetings in recent weeks have gathered feedback on the proposal, which would take advantage of a new state law that allows local governments to set their own minimum wages starting Jan. 1. Colorado’s statewide minimum wage is $11.10 and is set to rise to $12 on that date. The Denver proposal’s maximum tip offset would be set at $3.02 per hour, matching the state’s.

After the minimum reaches $15.87, it would be adjusted for inflation annually by tracking with the Consumer Price Index.

The measure has faced opposition from some business interests, including the Colorado Restaurant Association, which has threatened legal action, asserting that cities can’t set their own minimum wages until 2021 under its reading of the new state law. It also hopes to lobby the legislature next year to change what it sees as disparities caused among restaurant workers by the tip offset.

“We believe this revised proposal is a step in the right direction, and we appreciate the city’s willingness to slow down this increase,” said Sonia Riggs, the association’s CEO, while maintaining her opposition. “We’re also concerned that any increase in 2020 makes it much more difficult to fix the tip credit in the state legislature.”

Hancock said in the city’s news release that the stakeholder feedback had “led to a better and stronger bill to support Denver residents.”

“Our residents were clear, too many of you are working hard but still unable to make ends meet,” Kniech said in the news release. “We also heard that a smaller first step and spreading the proposal out over an additional year would help our small, locally owned businesses better prepare and adapt to higher wages.”

The council’s finance committee will take public comment at 1:30 p.m. Tuesday. Supporters’ timeline calls for an hour-long hearing before the final vote by the full council Nov. 25.