You’ve probably heard us talk about changes to Tip Pooling recently. The Federal government repealed the regulation that restricted sharing tips among front of house and back of house employees. There are a few things you need to know if you decide to institute a legal Tip Pool for your establishment.
First, you must pay all employees at least the full Colorado minimum wage and not the tipped minimum wage
Second, you must not include managers, supervisors, or owners in the tip pool
Third, you must post a printed sign
in a conspicuous location informing the general public that the restaurant shares tips among the employees.
We recommend that you contact our office if you currently have or are considering a tip pool to help you navigate the legal nuances of how to run it properly. Please contact Nick Hoover at the CRA
so he can answer your questions or connect you with legal help if needed.