What are the laws governing wages and tips for tipped employees?
In Colorado, tipped employees include employees who work in occupations such as waiters, waitresses, barmaids, bellhops, counter personnel, hair dressers, and service employees who receive more than $30 per month in tips. The minimum wage for tipped employees in Colorado is currently $12.00/hour. Employees may be paid less than the minimum wage as long as their wage plus tips make at least the minimum wage for Colorado. This is called a “tipped wage.” The Colorado Department of Labor and Employment requires employers to pay tipped employees at least $8.98/hour plus tips. If an employee’s hourly wage is at least $12.00/hour, the employer must provide a written notification to the employee informing them that if their tips do not bring their total wages up to the minimum wage, the employer is required to make up the difference. Under the state wage laws in Colorado, employers must ensure that employees are receiving all tips left for them. Employers may not keep any portion of tips for themselves or create a tip pool with other employees. Employers must also ensure that tipped employees are not asked to perform duties that are not related to their job position or tasks that are not traditionally related to tips, such as washing dishes or cleaning bathrooms. It is important that employers in Colorado are aware of their rights and responsibilities under the wage and hour laws to ensure that their employees receive the full amount of their wages and tips.
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