Colorado: Updated Tip Pool Notice Requirements

Colorado employers using tip pools must now comply with revised notice requirements under HB 1254. Specifically, tips are considered the sole property of employees unless the employer publishes a sufficient notice (including on menus, table tents, or receipts) informing each customer that the tips are shared by the employees. Under the former law, employers could only keep a portion of the tips received if they noticed the customer base with a 12 x 15 inch posting; now, employers may not keep any portion of tips.

The bill specifically states that it does not prevent required tip pooling. However, it remains unclear whether the bill applies to voluntary tip pools where the decision to share tips is made by the individual receiving the tips.

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