Megan K. Mechak
Tue, 06/20/2023
The rights of tipped workers to pay and overtime are treated differently than most other workers. For example, under the Fair Labor Standards Act, employers may pay a reduced amount as the minimum wage provided that the workers’ tips equal at least the difference between that amount and the federal minimum wage. In February 2019, a hotel banquet worker, Rowean Brennan, filed a complaint with the Colorado Department of Labor, alleging that his employer, the Broadmoor Hotel, charged customers a service charge and that he was not a tipped employee.
The Colorado Court of Appeals ruled last week that the banquet server was not a tipped worker, and therefore deserves overtime pay at the rate of one and one-half times the Colorado state minimum wage. According to the Court of Appeals, the Broadmoor Hotel’s set banquet service fee was not a “tip.” The Court adopted a hearing officer’s finding that, because the banquet service fee was not a voluntary act by a patron, it did not constitute a “tip.” Because Brennan was not a tipped worker, he was entitled to overtime pay.
If you believe your employer has improperly classified you as a tipped worker, or failed to properly pay you, contact MSE at [email protected].
