7 CCR 1101-2-3.2 - TIPS, GRATUITIES, AND SERVICE CHARGES
3.2.1
Statutory References: 8-70-141, 8-73-102, and 8-76-102 (1),
C.R.S.
3.2.2
Tips,
Gratuities, and Service Charges as Wages. Tips, gratuities, and service
charges shall be considered to be wages for the purposes of the act when the
employer exercises significant control over the amount and distribution of
money received by an employee as a tip, gratuity, or service charge.
3.2.3
Significant Control. An
employer is considered to have significant control over tips, gratuities, or
service charges when they are collected by the employer and then redistributed
to employees.
3.2.4
Minimum-Wage Requirements. Notwithstanding any other provision of
this section, any tips, gratuities, and service charges that are used by the
employer in order to conform to the minimum-wage requirements of federal or
state law shall be deemed to be wages for the purposes of the act, to the
extent of such use.
3.2.5
Use
of Credit Card. For the purposes of this section, the inclusion, for the
convenience of the customer, of a tip or gratuity in an amount charged by a
customer through the use of a credit card shall not, by itself, be deemed to
constitute significant control.
3.2.6
Requirement to Report
Tips. For the purposes of this section, a requirement by an employer
that an employee report or account for tips and gratuities shall not, by
itself, be deemed to constitute significant control.
3.2.7
Tips Reported to Employer.
In addition to the foregoing provisions of this section, on and after January
1, 1986, wages shall also include tips that are received while performing
services that constitute employment and that are made known to the employer
through a written statement furnished by the employee.
Notes
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