Tip credit allowed: $3.02/hr

Colorado tip pooling laws & tipped minimum wage

In Colorado, employers can pay tipped workers $12.14/hr as long as tips bring them to the $15.16 minimum — here's how that works and who can legally share your tips.

Regular minimum wage$15.16/hr
Minimum cash wage for tipped workers$12.14/hr
Maximum tip credit$3.02/hr
Tips belong toEmployees — always

Rates reviewed June 2026. Rates change — confirm with the Colorado labor department. Not legal advice.

What's specific to Colorado

Colorado caps the tip credit at $3.02/hr. Denver and other localities set higher minimums.

Tip pooling in Colorado

Colorado follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $12.14/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.

Two federal rules apply no matter what: managers and supervisors can never take from a tip pool, and credit card processing fees can only be deducted from tips where state law allows it .

What this means for your tip-out

Because part of your legal wage in Colorado comes from tips, every dollar you tip out matters — your employer's tip credit assumes those tips reached you. Track what you actually keep. Use our tip-out calculator to split a shift by your house's percentages or by hours, and see standard tip-out percentages to check whether your house's rates are typical.

Colorado tip law FAQs

What is the tipped minimum wage in Colorado?

Employers in Colorado may pay tipped employees a cash wage of $12.14/hr and claim a tip credit of up to $3.02/hr toward the $15.16 minimum wage. If tips don't close the gap in a workweek, the employer must make up the difference.

Is mandatory tip pooling legal in Colorado?

Colorado follows the federal baseline: employers may require tip pooling. If your employer takes the tip credit (pays $12.14/hr cash), the pool may only include customarily tipped workers — servers, bussers, bartenders, runners, hosts. Back-of-house can only be included if everyone is paid full minimum wage with no tip credit. Managers and supervisors are always excluded.

Can my manager take a cut of the tip pool in Colorado?

No. Federal law prohibits managers, supervisors, and owners from keeping any portion of employee tips in every state, including Colorado. A manager may keep only tips they directly and solely earned (e.g., a table they personally served start to finish).

Tip rules in other states