My employer terminated me for asking them to clarify their tip distribution policies. Tips are not being split according to colorado law or employee handbook. I have supporting documentation. My last day was January 6th, they took my shifts away. However they waited until Friday, January 10th to officially terminate me. It is now January 14th and I still have not been paid for my shifts I worked. They said 2 or 3 more days! I am concerned they wont pay my PTO and my tips. Also none of the employees have accrued sick time since the new manager took over payroll. Today they took away all of my daughters scheduled shifts. I don't know what I need to do.

I am sorry to hear about the difficult situation you and your daughter are facing; losing your livelihood is incredibly stressful, especially under these circumstances. Based on your description, several issues deserve a closer look under Colorado law. Here is a breakdown of what the law generally says regarding your situation.

Termination and Retaliation

In Colorado, as in most U.S. states, employment is generally considered "at-will," meaning an employer can terminate an employee for any reason or no reason, as long as it does not violate specific legal protections. However, there are exceptions to this doctrine, including statutory protections and the public policy exception, which may apply to your situation. Colorado Revised Statutes § 8-4-120 prohibits employers from retaliating against employees who raise concerns in good faith about compliance with laws related to wages, hours, or other employment rights.

If an employee's request to clarify a company policy is related to a matter of public interest or compliance with legal obligations, the public policy exception could potentially apply. However, it is important to note that merely requesting clarification of a company policy, without more, may not automatically trigger these protections.

Your Final Paycheck

In Colorado, when an employer terminates an employee, they are generally required to pay all earned wages immediately upon termination. Since you were let go on January 10th and it is now the 14th, that deadline has passed.

• The 14-Day Rule: While pay is due immediately, the law gives you a path to collect penalties if they don’t pay within 14 days of a written demand. If they miss that window, they could owe you the original wages plus a penalty of two to three times that amount.

• PTO Payout: Colorado is a "non-forfeiture" state for vacation pay. This means if you had earned vacation or PTO, it is legally considered "wages" and must be paid out in your final check. Any company policy that says you "forfeit" this time because you were terminated is typically not enforceable under Colorado Supreme Court rulings.

• Tips Payout: Under Colorado law, employers are not required to pay out uncollected tips to employees upon termination. While tips are generally considered the property of the employee who receives them, there is no statutory requirement mandating the payout of uncollected tips upon separation from employment

Tip Distribution and Sick Time

Colorado law is very strict about how tips are disbursed and sick time is accrued.

• Tips: Generally, managers and owners are prohibited from taking any share of a tip pool. If tips are being redirected to management, that is a significant issue that can lead to the employer owing back wages to employees and criminal penalties.

• Sick Time: Under the Healthy Families and Workplaces Act, almost all Colorado employees must accrue 1 hour of sick leave for every 30 hours worked. If a new manager stopped this accrual, they may be in violation of state law, though sick leave (unlike vacation) usually doesn't have to be paid out when you leave.

Suggested Next Steps

1. Written Demand: Consider sending a formal written demand for your wages and PTO today. Doing so starts the 14-day "clock" for legal penalties.

2. Gather Records: Save any copies of the handbook, your pay stubs, and any documentation you have regarding the tip distribution.

3. Department of Labor: You can file a wage complaint with the Colorado Division of Labor Standards and Statistics, which investigates unpaid wages and tip violations at no cost to you.

I hope this helps. If you have further questions, please feel free to call our office at 303-688-0944 to schedule a consultation regarding employment law. You can also set up an appointment online.