What is the minimum wage for tipped workers?

In Colorado, the minimum wage for tipped workers is $8.98 per hour. This minimum wage is slightly higher than the Federal minimum wage of $7.25 per hour. As a rule, employers must pay their tipped workers at least $8.98 per hour. This is known as a "tipped minimum wage." In addition to the tipped minimum wage, employers must also guarantee that employees earn at least a minimum total hourly wage of $13.01 per hour, including tips and wages combined. The difference between the tipped minimum wage ($8.98) and the overall minimum total wage ($13.01) must come from tips earned. If tips do not fulfill the gap, then the employer must make up the rest. Overall, tipped workers in Colorado must make at least $13.01 per hour before taxes. The law also states that tipped workers must be allowed to keep all tips earned, and employers are not allowed to take any portion of their tips. This ensures fairness and protection for employees. It is important to note that the tipped minimum wage applies to businesses with an annual gross income of $500,000 or less. Businesses with an annual gross income of more than $500,000 must pay all workers, including tipped workers, the standard minimum wage of $11.10 per hour.

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What is the minimum wage for tipped workers?

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