For the first time, the Colorado Court of Appeals interpreted two provisions of a state minimum wage order and concluded that a “service charge” for food and drink consumed during a banquet does not constitute a “tip” and that a banquet server is not a “sales employee.”
Rowean Brennan was employed as a banquet server at the Broadmoor, a luxury Colorado Springs resort from 2013 to 2019, according to the opinion. Brennan was paid a base hourly wage of $2.17 and received a portion of the 22% service charged for food and drink at events. That service charge was paid as a single expense by the banquet client after their event took place. Brennan earned between $11.36 and $33.05 per hour plus any additional tips left by banquet attendees.
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