Are employers allowed to pay tipped and non-tipped employees different wages?
In the state of Colorado, employers are able to legally pay tipped and non-tipped employees different wages. Colorado participates in the federal tip credit system, which allows employers to pay tipped employees a reduced hourly wage if they receive tips of at least $30 a month. Under this system, employers must pay tipped employees a base pay of $8.98 an hour, while non-tipped employees receive a minimum wage of $12.00 an hour. It is important that tipped employees in Colorado still receive fair wages for their work. Employers must take the difference between the reduced tipped hourly wage and the minimum wage into account. In other words, employers must ensure that tipped employees still receive at least the same amount of money when tips and wages are combined. If tips do not make up the difference, the employer must make up the difference in order to ensure the employee is not working for less than the minimum wage. Ultimately, employers in Colorado are allowed to pay tipped and non-tipped employees different wages. The key is that employers must ensure tipped employees still receive at least minimum wage when tips and wages are combined. If employers do not abide by this law, they may be subject to penalties, sanctions, or other disciplinary action.
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