Bill to ban Colorado businesses from prohibiting tipping sent to Polis

House Bill 1146 seeks to ban employers from punishing employees who accept cash tips

From McDonalds to Walmart, numerous businesses throughout the country prohibit their employees from accepting tips. But that practice could soon come to an end in Colorado.

If signed into law, House Bill 1146 would ban employers from punishing employees who accept cash tips from patrons of the business. The bill would not apply to employees in health care facilities, senior care facilities, casinos and those required to be licensed, certified or registered under Title 12.

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The bill passed its last vote in the state legislature on Sunday.

“We need to get back to being a society that encourages good service and good work,” said bill sponsor Rep. Alex Valdez, D-Denver, while presenting the bill in committee. “We want to make sure that doesn’t disappear in our cash-strapped economy.”

Valdez said many of the employees who are forbidden from accepting tips work service-related minimum wage jobs, earning only $13.65 an hour. While this is among the highest minimum wages in the country, Valdez said it is “still not enough to make a living in my district and in many parts of the state.”

Colorado’s housing market ranks in the top five most expensive in the nation, and recent rises in costs of living from energy to groceries have left 40% of Coloradans in worse financial positions than years past, according to the Colorado Health Foundation.

Senators passed the bill in a 22-11 vote on Sunday, following the House’s 45-18 approval earlier this month.

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The votes were mostly along party lines, with Democrats in support and Republicans in opposition. Across both chambers, only two Democrats voted against the bill and four Republicans voted in favor of it.

Critics said employers should be able to prohibit tipping if they want to, saying such employers may have an ethical objection to tipping or may want to ensure all customers get the same level of service regardless of money.

“Are you ready to live in a world where those with pockets full of cash get to jump the line in front of you? Get better service than you do?” said Sen. Jim Smallwood, R-Parker, who opposed the bill. “Reflect on the world that we live in today when it comes to tipping. … You’re already being asked to tip on virtually everything.”

Proponents of the bill said it is meant to permit tipping workers such as grocery baggers or cart pushers to thank them for their work, not to bribe employees for special treatment, which is illegal.

The bill would not prohibit employers from requiring employees to share or allocate cash tips to other employees in pre-established tip pools, or from requiring employees to report tips. It would block employers from demoting, firing or otherwise reprimanding employees for accepting tips.

The bill will be sent to Gov. Jared Polis in the coming days. If signed into law, it will take effect in August.

McDonald’s in 2020. (Associated Press file)
McDonald’s in 2020. (Associated Press file)
Minimum Wage With Dollar & Pennies High Quality Stock Photo ((Photo by Darren415, iStock))
Minimum Wage With Dollar & Pennies High Quality Stock Photo ((Photo by Darren415, iStock))

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