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Colorado: Updated Tip Pool Notice Requirements

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All Employers with Tipped CO Employees

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August 2, 2019

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(888) 378-2456

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.

Action Items

  1. Review the new bill here.
  2. Update tip pool notices consistent with new requirements.
  3. Update payroll practices to exclude employer retention of tips.
  4. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2019 ManagEase

New Jersey: Statewide Paid Sick Leave Begins October 2018

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October 29, 2018

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On May 2, 2018, New Jersey Governor Phil Murphy signed AB 1827 into law, making New Jersey the 10th state in the nation to require paid sick leave (“PSL”) for all employees.  The bill will replace local paid sick leave ordinances and create uniform paid sick leave requirements for employers across New Jersey.

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Third Circuit: WARN Notice Requirements Apply if Layoff is “Probable,” Not “Possible”

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All Employers with DE, NJ, PA, and Virgin Islands Employees

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August 4, 2017

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(888) 378-2456

The Third Circuit Court of Appeal recently joined other courts in stating that employers must obey the notice requirements required under the Worker Adjustment and Retraining Notification (“WARN”) Act when a layoff is “probable,” that is, more likely than not to occur.  A layoff or business closure being simply “possible” does not necessarily trigger the notice requirements of the WARN Act.

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