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Colorado House committee votes to advance bill to adjust state's pay structure for tipped workers

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Colorado's pay structure for tipped workers is set to change with House Bill 1208. The bill aims to address wage disparities and local minimum wage hikes.
The article from Colorado Politics discusses a recent decision by the Colorado Department of Labor and Employment to reduce the minimum cash wage for tipped workers from $10.63 to $10.02 per hour, effective from January 1, 2024. This adjustment was made to align with the state's minimum wage increase to $14.42 per hour, where employers can claim a tip credit of up to $3.02 per hour if tips bring the worker's total earnings to at least the minimum wage. The change has sparked controversy, with critics arguing that it could lead to reduced earnings for tipped workers, especially in light of economic pressures like inflation. Proponents of the change, however, assert that it maintains the balance between ensuring workers earn at least the minimum wage while allowing businesses to manage labor costs effectively. The article also mentions that this decision comes amidst ongoing debates about the fairness of the tip credit system, with some advocating for its elimination to provide a stable income for service industry workers.

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