(File photo) Colorado Appeals Court Holds 'Service Charge Is Not a Tip' in Issue of First Impression
"We agree that the Broadmoor's service charge is not a tip," stated Judge Terry Fox, in her written opinion for the court. "Foremost, the service charge does not fit within the ordinary meaning of tip. Under the CWA and Division rules, a tip and a gratuity are equivalent terms that are used interchangeably."
June 23, 2023 at 11:51 AM
5 minute read
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."
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