Recovering Stolen Tips in Colorado
My employer is taking my tips — here's what Colorado law says and what to do next.
Statute: Colo. Rev. Stat. § 8-4-109
Deadline: 14 days
Penalty: Employer may be liable for the unpaid wages plus a penalty equal to the amount of underpayment, plus costs and attorney fees
What is recovering stolen tips?
Wage theft is when your employer fails to pay you what you are legally owed. It is the most common labor violation in the United States — the Economic Policy Institute estimates that workers lose more than $50 billion per year to wage theft, exceeding all robberies, burglaries, and auto thefts combined.
Common forms of wage theft include: not paying overtime, paying below minimum wage, stealing tips, forcing off-the-clock work, misclassifying employees as independent contractors, and making illegal deductions from paychecks. The FLSA and state labor laws prohibit all of these practices.
What to Do If Your Employer Is Stealing Your Wages or Tips
Step 1: Keep your own records. Track hours worked, tips received, and pay received. Use a notebook, spreadsheet, or app — any contemporaneous record is valuable evidence.
Step 2: Compare your records against your pay stubs. Look for discrepancies: missing hours, lower tip amounts than you earned, unauthorized deductions, or overtime not paid at 1.5x.
Step 3: Raise the issue with your employer in writing. Email or text creates a documented record. State the specific discrepancy and the amount you believe you are owed.
Step 4: If your employer does not correct the issue, file a complaint with the DOL Wage and Hour Division at 1-866-487-9243 or online at dol.gov. You can also file with your state's labor department, which may have stronger protections.
Step 5: Consult an employment attorney. Many wage theft attorneys work on contingency (no upfront cost). Under the FLSA, you can recover back wages, an equal amount in liquidated damages (double damages), and attorney's fees.
How Colorado differs from federal law
Colorado has strong wage theft protections under the Colorado Wage Claim Act and the COMPS Order:
- Colorado minimum wage: $14.42/hr (2024, adjusted annually for CPI). Denver has a higher local minimum wage of $18.29/hr (2024).
- Colorado COMPS Order (7 CCR 1103-1): Provides comprehensive protections including mandatory rest breaks (10-minute paid break every 4 hours), meal breaks (30 minutes for shifts over 5 hours), and overtime requirements
- Tip protections: Tips belong to the employee. Employers cannot keep tips or require tip sharing with non-tipped employees. Tip credit of $3.02/hr is allowed, but total must equal at least the minimum wage.
- Wage Claim Act (C.R.S. § 8-4-101 et seq.): Employers must pay all wages owed upon separation. Willful failure to pay can result in penalties equal to the unpaid wages plus 50% penalty and attorney fees.
- Wage Theft Transparency Act (SB 23-105): Enhanced penalties and enforcement mechanisms for wage theft in Colorado
- Criminal penalties: Intentional wage theft can be prosecuted as a criminal offense in Colorado
Additional steps in Colorado
File a wage complaint with the Colorado CDLE, Division of Labor Standards and Statistics at (303) 318-8441 or online at cdle.colorado.gov. For Denver-specific violations, contact the Denver Auditor's Office. Keep your own records of hours worked and tips received. Consult an employment attorney for larger claims.
What you should NOT do
Don't rely on your employer's time records alone. Employers sometimes alter timekeeping records. Your personal records are admissible evidence and can contradict employer records.
Don't wait too long to file. The FLSA has a 2-year statute of limitations (3 years for willful violations). State deadlines vary. File as soon as you identify a problem.
Don't assume small amounts aren't worth pursuing. Wage theft often accumulates over months or years. A few dollars per shift adds up to thousands. Class action lawsuits are also common for systemic violations.
Don't fear retaliation. It is illegal for your employer to fire, demote, or punish you for filing a wage complaint. If they do, you have an additional retaliation claim.
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Generate your unpaid wages →This page is general legal information for Colorado, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in Colorado.