Colorado tip laws (2026)
Colorado's minimum wage is $15.16 an hour in 2026, and tipped workers can be paid $12.14 cash with a $3.02 tip credit. Denver, Boulder, unincorporated Boulder County and Edgewater set higher local rates. Tips can't pay card-processing fees, and customers have to be told in writing when tips are pooled.
Colorado at a glance
Tip credit allowedColorado: $15.16 an hour minimum wage. Tipped staff can be paid $12.14 cash, with up to $3.02 counted from tips.
| State minimum wage | $15.16/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $12.14 | Plus up to $3.02 in tips = $15.16.[2] |
| Max tip credit | $3.02 | Counted from tips.[3] |
| Tip pooling | Allowed | Mandatory pools allowed.[4] |
| Card-fee deduction | Not allowed | The full tip goes to the worker.[2] |
| Card tip payout | Tips belong to the worker once the customer pays. | Pay periods run a month at most, with payday within 10 days.[2][4][5] |
| Local minimum wages | 4 places | Local rates on file. See all[6] |
Rates verified against the Colorado Department of Labor and Employment, Division of Labor Standards and Statistics on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
Can you do this in Colorado?
In Colorado you can take a tip credit of up to $3.02 an hour, can require staff to join a tip pool and can't take card processing fees out of tips. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $12.14 cash and count up to $3.02 in tips. Tips must cover the gap.[1][2][3] |
| 02 | Make staff join a tip pool? | Yes | A required pool has to follow a set plan, with written notice to customers.[4] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3][2] |
| 04 | Include cooks and dishwashers? | Yes | Cooks and dishwashers can join a required pool only if everyone in it gets the full cash minimum, with notices and no tip credit.[2] |
| 05 | Give managers or supervisors a share? | No | Managers, supervisors and employers can't share in pools. Tips they earn directly and solely can be kept. State and federal duties tests both count.[2] |
| 06 | Let an owner keep any of the tips? | No | Employers get no share of tips. Under state law, owners of 25% or more count as the employer, with a narrow minority-owner exception.[4][2] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | The employer can require a set distribution. Workers learn the math and participants in advance, and customers get written notice.[4][2] |
| 08 | Take card processing fees out of tips? | No | The worker gets the full tip on the slip.[2] |
| 09 | Hold card tips until payday? | Deadline | Tips belong to the worker once the customer pays. Pay periods run a month at most, with payday within 10 days.[2][4][5] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[2] |
| 11 | Keep a mandatory service charge for the house? | Depends | A required charge isn't a tip and can't count toward the credit. If the employer says it goes to servers, servers have to get it.[2] |
| 12 | Pay tips on a payroll card? | Depends | State paycard rules and federal worker-choice rules both apply. Offer another way to get paid too.[4][7] |
03State vs federal
Colorado vs federal law
Colorado sets a stricter rule than federal law on 4 of the 10 rules below, starting with a $15.16 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Colorado | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[5] | Colorado$15.16[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[5] | Colorado$12.14[2][1] | Stricter |
| Max tip creditStricter | Federal$5.12[5] | Colorado$3.02[3] | Stricter |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[5] | ColoradoColorado's agency uses regularly more than $1.64 an hour in tips, since January 1, 2024. The federal more-than-$30-a-month test applies separately.[3] | State rule |
| Managers in the poolState rule | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[5] | ColoradoManagers, supervisors and employers can't share in pools. Tips they earn directly and solely can be kept. State and federal duties tests both count.[2] | State rule |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[5] | ColoradoCooks and dishwashers can join a required pool only if everyone in it gets the full cash minimum, with notices and no tip credit.[2] | State rule |
| Card fees from tipsStricter | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[5] | ColoradoNot allowed[2] | Stricter |
| Card tip payoutState rule | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[5] | ColoradoTips belong to the worker once the customer pays. Pay periods run a month at most, with payday within 10 days.[2][4][5] | State rule |
| Mandatory service chargesState rule | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[5] | ColoradoA required charge isn't a tip and can't count toward the credit. If the employer says it goes to servers, servers have to get it.[2] | State rule |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[5] | ColoradoOvertime after 40 weekly hours, or 12 daily or consecutive hours, whichever pays more. Pay 1.5 times the full rate, minus the credit once.[2] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Colorado fits among the four tip credit classes.
Side work
Colorado kept the 80/20 rule
A federal court struck down the federal side-work rule. Colorado's agency kept its own version under state law.[2][5]
Federal rule now
- Old 80/20 and 30-minute limits struck down
- Dual-jobs rule still applies to unrelated work
Colorado rule
- Side work has to directly support tipped work
- No more than 20% of weekly hours
- No more than 30 minutes in a row
- Unrelated duties get no tip credit
04Wages
Minimum wage and the tip credit in Colorado
In Colorado employers can pay tipped staff $12.14 an hour and count up to $3.02 in tips toward the $15.16 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in Colorado
A busy week with $90.60 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- The job has to be a tipped one, tips have to cover the gap each workweek, pools need advance notice, and higher local rules win.[3][2]
- Who counts as tipped
- Colorado's agency uses regularly more than $1.64 an hour in tips, since January 1, 2024. The federal more-than-$30-a-month test applies separately.[3]
- Overtime
- Overtime after 40 weekly hours, or 12 daily or consecutive hours, whichever pays more. Pay 1.5 times the full rate, minus the credit once.[2]
- Side work and dual jobs
- Colorado still limits side work to 20% of weekly hours and 30 minutes in a row. Unrelated duties get no credit.[2]
Other rates
| Rate | Hourly |
|---|---|
| Tier Covered restaurant/bar employeesThe statewide floor. Higher local wages and local tip-credit rules can apply. Since .[1] | $15.16 |
| Youth or training Unemancipated minorsThe state allows 15% less than the full minimum. Some local rules require the full rate. Rate set by formula: 85% of full applicable Colorado minimum wage.[3] | $12.89* |
* Worked out by Ferry from the formula, using the $15.16 state minimum wage. Not an official figure.
Scheduled increases
No statewide increase with a published amount is on file as of .
05Local rates
City and county minimum wages in Colorado
4 cities and counties in Colorado set their own minimum wage, from $16.82 in Boulder County to $19.29 in Denver. A restaurant inside one of them pays the local rate, not the $15.16 state rate.[6]
| City or county | Rate | vs state $15.16 | Tipped cash wage | Effective |
|---|---|---|---|---|
| DenverCredit applies to food and beverage tipped workers with actual, documented tips.[8][2] | $19.29 | +$4.13 over state | $16.27 | Next change $19.84 on |
| EdgewaterEdgewater's 2026 tip credit is $4.67, higher than elsewhere. Its later schedule still needs ordinance confirmation.[2] | $18.17 | +$3.01 over state | $13.50 | |
| BoulderCredit applies to food and beverage workers only. In July 2026 the council chose not to change the local tip offset.[9][10] | $16.82 | +$1.66 over state | $13.80 | Next change $18.17 on |
| Boulder CountyUnincorporated areasApplies to work in unincorporated areas, generally 4 or more hours a week. Food and beverage tip credit.[11][2] | $16.82 | +$1.66 over state | $13.80 | Next change $17.43 on |
Local wages
Four places pay more than the state
Denver, Boulder, unincorporated Boulder County and Edgewater all set their own minimums. Most keep the $3.02 tip credit, but Edgewater's is $4.67.[2][6][9][10][11][8]
| Where | Minimum wage | Tipped cash wage | Tip credit | 2027 minimum |
|---|---|---|---|---|
| Statewide | $15.16 | $12.14 | $3.02 | Not confirmed |
| Denver | $19.29 | $16.27 | $3.02 | $19.84 |
| Edgewater | $18.17 | $13.50 | $4.67 | Not confirmed |
| Boulder (city) | $16.82 | $13.80 | $3.02 | $18.17 |
| Unincorporated Boulder County | $16.82 | $13.80 | $3.02 | $17.43 |
06Tip pool
Who can be in the tip pool in Colorado
Colorado allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3] |
| Bartender | Depends | Pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3] |
| Busser | Depends | Pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3] |
| Food runner | Depends | Pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3] |
| Host | Depends | Pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3] |
| Barback | Depends | Pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3] |
| Expo | Depends | Pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3] |
| Back of house | ||
| Cook | Allowed | Only in a pool where everyone gets the full cash minimum, notices go out, and no manager or employer shares.[2] |
| Dishwasher | Allowed | Only in a pool where everyone gets the full cash minimum, notices go out, and no manager or employer shares.[2] |
| Leadership | ||
| Shift lead | Depends | Pools that use the credit need real customer service. No employer, manager or supervisor shares.[4][3] |
| Manager or supervisor | Not allowed | No pool shares. Tips earned directly and solely from their own service are a separate matter.[2] |
| Owner | Not allowed | No pool shares. Tips earned directly and solely from their own service are a separate matter.[2] |
- Managers and supervisors
- Managers, supervisors and employers can't share in pools. Tips they earn directly and solely can be kept. State and federal duties tests both count.[2]
- Owners
- Employers get no share of tips. Under state law, owners of 25% or more count as the employer, with a narrow minority-owner exception.[4][2]
- Back of house
- Cooks and dishwashers can join a required pool only if everyone in it gets the full cash minimum, with notices and no tip credit.[2]
- Who sets the percentages
- The employer can require a set distribution. Workers learn the math and participants in advance, and customers get written notice.[4][2]
- Cap on what a pool can take
- No state rule. Federal rule applies: no federal percentage or amount cap for a valid mandatory pool; eligibility, notice and minimum wage rules still apply.[5][4]
- Pooling allowed
- Yes. Set distribution, advance worker notice and written customer notice. Managers and employers stay out.[4]
07Put it to work
Setting up a tip pool in Colorado
Under Colorado rules, 9 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $220.00 | $203.39 | $133.34 |
| Jordan | $220.00 | $203.39 | $133.33 |
| Priya | $220.00 | $203.39 | $133.33 |
| Sam | $144.00 | $162.71 | $133.33 |
| Luis | $90.00 | $101.69 | $111.11 |
| Ava | $90.00 | $101.69 | $111.11 |
| Theo | $72.00 | $81.36 | $155.56 |
| Kim | $72.00 | $81.36 | $155.56 |
| Rafa | $72.00 | $61.02 | $133.33 |
| Dana | Not in the pool. No pool shares. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Colorado's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Ferry Tip Manager: support pool split by hours
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
Service charges vs tips in Colorado
In Colorado whether a mandatory service charge counts as a tip depends on the facts. A required charge isn't a tip and can't count toward the credit.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | A required charge isn't a tip and can't count toward the credit. If the employer says it goes to servers, servers have to get it.[2] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[5] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[13][14] |
| Guest notice | None needed | C.R.S. 6-1-737 requires clear conspicuous total-price disclosure. Its food/beverage alternative permits separately stated mandatory charges only with clear conspicuous percentage/amount and accurate distribution description with every offer, display or advertised price; no deceptive pricing. Effective January 1, 2026.[12] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does Colorado say?Depends on the factsA required charge isn't a tip and can't count toward the credit. If the employer says it goes to servers, servers have to get it.[2]
- Step 3Check the cityNo city service charge rules on file for Colorado.
- Menu and receipt notice
- C.R.S. 6-1-737 requires clear conspicuous total-price disclosure. Its food/beverage alternative permits separately stated mandatory charges only with clear conspicuous percentage/amount and accurate distribution description with every offer, display or advertised price; no deceptive pricing. Effective January 1, 2026.[12]
- Large-party auto gratuities
- A required charge isn't a tip and can't count toward the credit. If the employer says it goes to servers, servers have to get it.[2]
Local service charge rules
No local service charge rules on file for Colorado.
More on the difference: service charge vs tip.
09Card tips
Card tips in Colorado: fees and payout timing
In Colorado the card processing fee can't come out of a worker's tip; the full tip goes to the worker. Payout deadline: tips belong to the worker once the customer pays. Pay periods run a month at most, with payday within 10 days.
Tips can't pay card-processing fees. If they do, the tips go back and the credit is lost, so full minimum is owed.[2]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineColorado rule Tips belong to the worker once the customer pays. Pay periods run a month at most, with payday within 10 days.[2][4][5]
- Last dayFinal pay Fired: earned pay is due right away, with some 6- and 24-hour exceptions. Quit: next regular payday.[4]
Paydays: Pay periods run no longer than a month or 30 days. Payday is within 10 days after the period closes, unless both sides agree otherwise.[4]
Paying tips on a payroll card
- Allowed?DependsState paycard rules and federal worker-choice rules both apply.[4]
- Worker consent needed?DependsFederal rules bar a paycard as the only option. State rules require free access or another method.[7][4]
- Free way to get the money?State ruleA paycard is allowed if the worker gets free access to full net pay once per pay period or can pick another method.[4]
- Must you offer another option?YesFederal rules require at least one other way to get paid.[7]
- Holding cash tipsState ruleCash tips belong to the worker once paid. Pooled cash needs the required notices and goes out on time as wages.[4][2][5]
- Tips shown on the pay stubYesPaystubs show tips and credits. Records have to separate tips left from tips paid after pooling.[1]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
10Records
Records and notices in Colorado
Keep each tipped worker's tips and hours on record, shift by shift. Colorado: at least 3 years after wages are due, and longer while a wage claim is pending.
Colorado State
- Tip records Record tips left, tips paid after pooling, credits, daily hours, rates and pay. Biweekly or monthly tip totals alone aren't enough.[2][3]
- How long to keep them At least 3 years after wages are due, and longer while a wage claim is pending. Tips and credits get recorded too.[3]
- Tip credit notice Required. Federal credit notice first. Colorado adds advance notice of pool math and participants, written customer notice, and the current state poster.[2][4][5]
- Posters and forms Current COMPS Order poster/notice, including handbook/manual and appropriate translations; Notice of regular paydays; Written customer tip-pooling notice.[1][4]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[5]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[15]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[5]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in Colorado?
Workers in Colorado can file a tip or wage claim with the Colorado Department of Labor and Employment, Division of Labor Standards and Statistics (303-318-8441). Filing is free, and this page can't settle a dispute; the state can.[1]
- Phone
- 303-318-8441[1]
- Website
- cdle.colorado.gov/dlss
Retaliation: No retaliation for using wage rights. State civil and criminal remedies apply, plus federal protections.[4][1]
Penalties: Unpaid 14 days after a demand: the greater of 2 times wages or $1,000. Willful: 3 times or $3,000. Bad pools mean tips go back.[4][2]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedTips can't cover business costs, card fees or manager shares. Other wage deductions have their own limits.[2]
- BreakageNot allowedTips can't cover business costs, card fees or manager shares. Other wage deductions have their own limits.[2]
- Register shortagesNot allowedTips can't cover business costs, card fees or manager shares. Other wage deductions have their own limits.[2]
- UniformsNot allowedTips can't cover business costs, card fees or manager shares. Other wage deductions have their own limits.[2]
- Card processing feesNot allowedTips can't cover business costs, card fees or manager shares. Other wage deductions have their own limits.[2]
- A manager's shareNot allowedTips can't cover business costs, card fees or manager shares. Other wage deductions have their own limits.[2]
11Law changes
What changed in Colorado tip law, and what's coming
No statewide increase with a published amount is on file for Colorado as of . Most recent change: COMPS Order 40 became effective, updating local tip-credit rules and wage records. Statewide 2026 rates stay $15.16 and $12.14 cash ().
- ChangedCOMPS Order 40 became effective, updating local tip-credit rules and wage records. Statewide 2026 rates stay $15.16 and $12.14 cash.[3]
- ChangedStatewide minimum rose to $15.16, with a $12.14 tipped cash wage. Edgewater set $18.17, or $13.50 cash with a $4.67 tip credit.[2]
- ChangedConsumer pricing law requires the total price, or for food and drink, disclosure of any mandatory charge, its amount and who gets it.[12]
Key statutes
- C.R.S. 8-4-103(6): gratuity ownership and customer notice of tip pools
- C.R.S. 8-4-102, 103, 109 and 120: pay cards, wages, remedies and retaliation
- 7 CCR 1103-1, COMPS Rules 1.10, 6.2.3 and 7
- C.R.S. 29-1-1401 and 8-6-101: local authority
Not covered here? Ask the Colorado Department of Labor and Employment, Division of Labor Standards and Statistics at 303-318-8441 or on cdle.colorado.gov/dlss.
12FAQ
Colorado tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Colorado tip law, each linked to its source.
What is Colorado's tipped minimum wage?
$12.14 an hour in cash in 2026, with a $3.02 tip credit on the $15.16 minimum. Cash plus tips has to reach the minimum each workweek, and local rates can be higher.[2]
What is the tipped wage in Denver?
Does Colorado still limit side work?
Yes. The state agency caps supporting side work at 20% of weekly hours and 30 minutes in a row, even after the federal rule was struck down.[2]
Can cooks or dishwashers join a tip pool?
Yes, if everyone in the pool gets the full minimum wage from the employer, notices go out, and no manager or employer shares. No tip credit for that pool.[2]
Do customers have to be told about tip pooling?
Yes. Colorado requires written notice that tips are shared, like on a menu, table tent or receipt.[4]
Can tips pay card-processing fees?
No. The state agency says tips can't pay processor fees. Tips used that way go back, and full minimum is owed if a credit was taken.[2]
Is an automatic service charge a tip?
No, and it can't count toward the tip credit. If the employer says the charge goes to staff, that amount becomes wages owed to them.[2]
When is final pay due?
Right away after a firing, with some short exceptions. After a resignation, by the next regular payday.[4]
13Compare
How Colorado compares with nearby states
Colorado borders Arizona, Kansas, Nebraska, New Mexico, Oklahoma, Utah and Wyoming. None of the neighbors with a page pays a higher minimum wage than Colorado's $15.16. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
- Arizona tip laws$15.15 min wage $12.15 tipped cash wage Above $2.13
- Kansas tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Nebraska tip laws$15.00 min wage $2.13 tipped cash wage $2.13 cash
- New Mexico tip laws$12.00 min wage $3.00 tipped cash wage Above $2.13
- Oklahoma tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Utah tip laws$7.25 min wage $2.13 tipped cash wage $2.13 cash
- Wyoming tip laws$7.25 min wage Federal $2.13 cash wage Federal
States with the same rules
Same tip credit class as Colorado: Tip credit, cash wage above federal.
- Maine tip laws$15.10 min wage $7.55 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Massachusetts tip laws$15.00 min wage $6.75 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- New Jersey tip laws$15.92 min wage $6.05 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Pennsylvania tip laws$7.25 min wage $2.83 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Michigan tip laws$13.73 min wage $5.49 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
- Delaware tip laws$15.00 min wage $2.23 tipped cash wage Also a tip credit with a cash wage above $2.13, and no card fees from tips
The law decides who's in. Ferry runs the split.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Colorado setup.
14Sources
Sources for Colorado tip laws
Every figure on this page links to one of these 15 sources: 12 for Colorado and 3 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 1Colorado Wage and Hour Rights and Responsibilities: 2026 COMPS PosterColorado Department of Labor and Employment · Official source · Page updated · Checked Pinpoint: 2026 minimum-wage heading; Employer Responsibilities, Rule 7web.archive.org/web/20260808011030id_/https://cdle.colorado.gov/sites/cdle/files/2026_comps_order_poster_english_%5Baccessible%5D.pdf
What the source says
“Colorado Minimum Wage: $15.16 per hour in 2026, updated yearly”
“Effective 1/1/2026”
“Give employees pay statements (total pay, rate, tips, credits, and time worked), and keep for 3 years”
- 2INFO 3 C: Tips (Gratuities) and Tipped Employees Under Colorado Wage LawColorado Department of Labor and Employment · Official source · Page updated · Checked Pinpoint: Limits on Sharing Tips, p. 5web.archive.org/web/20260327172841id_/https://cdle.colorado.gov/sites/cdle/files/info_%233c_tips_gratuities)_and_tipped_employees_under_colorado_wage_law_12.18.25.pdf
What the source says
“In 2026, that requires at least $12.14 ($16.27 in Denver) in direct wages, even if tips are (for example) $20 per hour.”
“employees are told in advance that their tips will be shared, and how they will be shared (what calculations, and which employees), including any required employee contribution to a tip pool;”
“customers are notified in writing that tips they leave will be pooled, in any way (a notice on a menu, a table tent, a receipt, etc.) that gives customers notice before they decide on any tip;”
- 3Adopted COMPS Order 40, 7 CCR 1103-1, effective February 1, 2026Colorado Secretary of State · Official source · Page updated · Checked Pinpoint: YES Rule 11 limitations expressly referencedwww.sos.state.co.us/CCR/GenerateRulePdf.do?ruleVersionId=12406
What the source says
“A statewide tip credit no greater than $3.02 per hour may be used to offset direct wages for employers of tipped employees.”
““Tipped employee” means any employee who regularly receives more than $1.64 per hour in tips (averaged over any pay period permitted by C.R.S. § 8-4-103).”
“The minimum wage may be reduced by 15% for non-emancipated minors”
- 4Colorado Revised Statutes 2026, Title 8, Labor and IndustryColorado General Assembly, Office of Legislative Legal Services · Official source · Page updated 2026 · Checked Pinpoint: 8-4-103(6)olls.info/crs/crs2026-title-08.htm
What the source says
“Nothing in this section prevents an employer from requiring employees to share or allocate gratuities on a preestablished basis among the employees of the business.”
“each individual who owns or controls at least twenty-five percent of the ownership interests in an employer;”
“These gratuities are the sole property of the employee unless the employer notifies each patron in writing, including by a notice on a menu, table tent, or receipt, that gratuities are shared by employees.”
- 5Fact Sheet #15: Tipped Employees Under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Checked Pinpoint: Credit Cards, paragraph 2; Distributing Tips from Tip Pools, paragraph 1; Tip Credit, paragraph 2www.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“Under federal law, the amount due the employee must be paid no later than the regular pay day and may not be held while the employer is awaiting reimbursement from the credit card company.”
“To the extent an employer cannot determine the amount of tips received or how tips should be distributed before processing payroll, those tips must be distributed to employees as soon as practicable after the regular payday.”
“When an employer collects tips to administer a tip pool, the employer must fully distribute any collected tips at the regular payday for the workweek, or, for pay periods of more than one workweek, at the regular payday for the period in which the particular workweek ends.”
- 6INFO 19: Local Minimum WagesColorado Department of Labor and Employment · Official source · Page updated · Checked Pinpoint: Overview, C.R.S. 29-1-1401(1)web.archive.org/web/20260104143002id_/https://cdle.colorado.gov/sites/cdle/files/info_%2319_local_min_wages_12.18.25.pdf
What the source says
“Any local government (“LG”) in Colorado may adopt a local minimum wage (“LMW”) for individuals performing work within its jurisdiction under Colorado H.B. 19-1210, C.R.S. 29-1-1401(1).”
- 7What is a payroll card?Consumer Financial Protection Bureau · Official source · Page updated · Checked Pinpoint: paragraph following definitionwww.consumerfinance.gov/ask-cfpb/what-is-a-payroll-card-en-401
What the source says
“Your employer can’t require you to receive your wages on a payroll card.”
“Your employer has to offer you at least one alternative to a payroll card.”
- 8Denver's Minimum Wage - City and County of Denverdenvergov.org · Official source · Checked denvergov.org/Government/Agencies-Departments-Offices/Agencies-Departments-Offices-Directory/Auditors-Office/Denver-Labor/Citywide-Minimum-Wage/Minimum-Wage
What the source says
“$19.29/hour in 2026 $19.84/hour in 2027 All employees working within the geographical limits of the City and County of Denver.”
- 9Exploring the City’s New Authority to Modify the Tip OffsetCity of Boulder · Official source · Checked Pinpoint: 2026 project timeline, completed decisionbouldercolorado.gov/projects/exploring-citys-new-authority-modify-tip-offset
What the source says
“2026 $16.82 $13.80 $3.02 2027 $18.17 $15.15 (unless the tip offset is increased) $3.02 (unless the tip offset is increased) When City Council voted to increase the minimum wage in 2024, they did not have the authority to modify the tip offset from $3.02.”
“The second reading and public hearing were held on July 30, at which Council chose not to modify the local tip offset.”
- 10Local Minimum WageCity of Boulder · Official source · Checked bouldercolorado.gov/local-minimum-wage
What the source says
“Beginning January 1, 2027: $18.17 per hour; Beginning January 1, 2028, and on January 1 of each subsequent calendar year, the City of Boulder Minimum Wage shall increase by an amount corresponding to the prior year increase, if any, in the Consumer Price Index for”
- 11Local Minimum Wage - Boulder Countybouldercounty.gov · Official source · Checked bouldercounty.gov/departments/commissioners/local-minimum-wage
What the source says
“The local minimum wage in unincorporated Boulder County is 16.82/hour in 2026.”
“Starting on Jan. 1, 2027, the local minimum wage in unincorporated Boulder County is $17.43/hour .”
- 12Colorado Revised Statutes 2026, Title 6, section 6-1-737Colorado General Assembly authorized statutory host · Official source · Page updated 2026 · Checked Pinpoint: 6-1-737(2)(b)(I), food/beverage alternative to (2)(a) total-price displayolls.info/crs/crs2026-title-06.htm
What the source says
“a clear and conspicuous disclosure of the percentage or amount of any mandatory service charge and an accurate description of how the mandatory service charge is distributed;”
- 13Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 14Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 15Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
15Methodology
How we research these pages
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
- 1
Official sources only
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
- 2
Every figure is linked
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
- 3
Re-checked on a schedule
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
- 4
Gaps are left out, not guessed
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
What changed on this page
- First version of this page. Every figure was checked against the official sources listed on this page.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Tip laws in every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
- No tip creditNo tip credit
- Above $2.13Tip credit, cash wage above federal
- $2.13 cashTip credit, federal cash wage
- FederalFederal rates apply
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.