New Ruling on Tips in Colorado

New Ruling on Tips in Colorado

We recently became aware of a Court case decision that directly impacts the restaurant industry. Due to the complexity of this issue, it is important for you to read the ENTIRE article before acting. You may or may not wish to make any changes based on the information provided. However, if you do choose to make any changes, we recommend that you seek counsel prior to doing so.

On June 30, the Tenth Circuit Court of Appeals decided a case concerning tipped employees that set a new legal precedent for employers in the State of Colorado. In Marlow v. The New Food Guy, Inc, the Court decided in favor of the employer, closing the door on claims that tipped employees have a “property right” to tips paid as a result of customer service, as long as the employer pays the employees FULL minimum wage or more. This decision rejects the Federal Department of Labor rule stating tips are the property of the employee and outside of a legal tip pool, the employer can’t direct where that money goes.

The CRA recently told me I couldn’t share tips with the back of house or managers, why has this changed?

Last year, the Ninth Circuit Court of Appeals ruled in a very similar case (Oregon Restaurant & Lodging Association v. Perez) that tips were the property of the employee and outside of a legal tip pool, the employer couldn’t direct where those tips went. Additionally, the Court determined that tips could only be shared with regularly tipped positions and not the back-of-the-house staff, regardless of the hourly rate paid to tipped employees. Because this was the most recent ruling on tips and tip pools, the CRA and labor attorneys suggested following the Ninth Circuit’s decision.

What has changed is the fact that restaurants in Colorado (and several other states) are subject to the Tenth Circuit Court of Appeals and that Court has just handed down a new ruling disagreeing with the ORLA case. This new ruling changes how restaurants in Colorado may want to handle tips and tip pools.

What does this mean for restaurants in Colorado?

As long as tipped employees are paid full minimum wage (not tipped minimum wage) or more by the employer, the employer can decide how tips are distributed. This means that in Colorado tipped employees currently must make $9.30 an hour and $13.95 for overtime, or more (note- this rate will increase every January 1). If your tipped employees are paid at least this much, then you as the employer can decide how tips will be distributed and can share them with the back of house or managers, and the business can even keep some or all of the tips. Keep in mind, however, that we still have the requirement in Colorado statute, C.R.S. § 8-4-103 (6), allowing an employer to assert claim to, right of ownership in, or control over tips only if the employer posts a printed card at least 12 inches by 15 inches in size with letters one-half inch high in a conspicuous location at the place of business. The card must contain a notice to the general public that all tips or gratuities given by the patron are not the property of the employee but instead belong to the employer. If the employer does not post a printed card detailing tip ownership as described above, the employer may not exert any control over tips designated for an employee under Colorado law. For those of you who do business over the phone or email, such as the catering business in the Marlow case, you may want to include this same notice in your catering agreements as well.

Is this permanent?

We don’t know. A group of restaurants and trade associations (including the NRA) has petitioned the Supreme Court to take up the ORLA case. This case now directly contradicts it. If the Supreme Court decides to take up this issue and rules in a certain way, restaurants will have to go back to only sharing tips with regularly tipped employees. Currently, it is not clear if the Supreme Court is even going to take up the case and if they do, it could be years before there is a ruling.

What do I need to do now?

For all of these reasons, you may want to take a more conservative, wait-and-see approach and keep your business model as is. However, some employers may want to adopt the above-outlined steps. This is the time for you to reach out to your business advisers to determine the best solution for you and your employees.

If you have any questions about tip pools, wage and hour issues, or questions about this new precedent, please contact Nick Hoover from the CRA by email or call 303-830-2972.

This post was provided by our friends at the Colorado Restaurant Association.

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A recent Tenth Circuit Court case decision changes the rules on tips depending on if you take the tip credit or not. Our friends at The Colorado Restaurant Association are on top of the story but due to the complexity of this issue, we suggest you read the full story here before acting!

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What to Do When You’re the Only Waitress at Your Cafe

What to Do When You’re the Only Waitress at Your Cafe

Being the lone waitress in a cafe is often, well… lonely. There’s no one to socialize with, share the daily frustrations of your shift with, or to ask for help when you start to get overwhelmed. It can be a great, rewarding job, but you may struggle with the fact that you’re alone in your specific job throughout the day. If you’re feeling a little lonely, these tips can help make it easier.

1. Look for tasks that will help you keep busy. There are plenty of things to be done throughout your shift, from rolling silverware to wiping down tables. When you have things to keep you busy, you’ll have less time to dwell on the fact that you’re feeling a little lonely. Going above and beyond won’t just keep you busy; it will also make you stand out as an amazing employee.

2. Consider the freedom that’s available to you. Talk with your bosses about what you’re expected to do when there are no further tasks to take care of. Are you allowed to have a seat and pull out your phone if there are no customers needing your attention? Can you engage in other hobbies as long as you don’t need to actively take care of a customer? Make sure you’re familiar with the policies of your workplace and know how you’re expected to behave when there’s not work to be done, but you still have to be on the job.

3. Perfect your small talk skills. Interacting with customers, especially the good ones, is a great way to decrease loneliness and help you feel less isolated during your shift. Take the time to chat with regulars and get to know them, from memorizing their drink orders to knowing a little bit about their lives. Chat with customers as they come into the restaurant. Make sure, however, that you’re prepared to respond to social cues. Some customers come to a restaurant to spend time with each other–couples on a date, friends, and coworkers. Others come for a quiet meal. Others, however–especially those who come in alone and don’t seem to be glued to their phone, a book, or some other activity–will welcome the chance to interact just as much as you will.

4. Focus on the benefits. After a long, lonely day at work–especially when there have been few customers and the kitchen staff hasn’t been interesting in socializing–it can be hard to look on the bright side. Fortunately, there are a number of benefits to being the only waitress on the scene. Focus on them to help your day stay bright!

  • You’re in full control of the floor, so you don’t have to worry about another server upsetting your pattern or forgetting important items.
  • You get to keep all of your tips instead of putting them in a communal pool to share with other servers.
  • You’re able to maintain a great deal more freedom throughout the work day. In many cases, you’ll be able to choose your own activities when you aren’t busy with customers.
  • You can be sure that every table in the building receives the best possible service from you.

From busy shifts when it seems as though everyone in town is flocking to your normally quiet little restaurant to long, lonely shifts when no one comes through the door, being the “lone wolf” waitress or waiter at your restaurant or cafe can be tough. By utilizing these strategies, however, you’ll be able to make the most out of your shift and maximize your job satisfaction. Sure, there’s no one to roll your eyes with over the difficult customers; but there’s not a whole lot of server drama, either!

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Why Employees Quit And What You Can Do To Keep Them

Why Employees Quit And What You Can Do To Keep Them

The restaurant industry suffers from a high employee turn-over rate. If you have worked in the industry for long, you are well aware of this, and it is probably annoying you. Constantly having to train new people is no fun. So how do you get people to stay? Well, the first step is to figure out why people are leaving, and then work on taking away those reasons. Here, in no particular order, is a list of some of those reasons.

1. Co-worker Problems

One bad apple can make life at your restaurant hard. Someone who constantly calls in sick clearly doesn’t care about the work, or is just generally incompetent reduces productivity. Additionally, relationships with co-workers is a major component in how much satisfaction people get out of work, and having good friends at the workplace is an indicator of being happy on the job.

So how do you deal with this? Well, your first step is to make sure you hire people who will fit in your restaurant. Be sure you hire people who exhibit a real passion for the work in the interview and look for a cultural fit. Once you have your team, keep an eye out for arguments between team members and try to integrate all new employees into the team as smoothly and quickly as possible. And if you have an employee whose incompetence or personal issue is affecting the team, step in quickly to fix the problem before the problem employee makes the good ones want to quit.

2. Scheduling Conflicts

Get everyone’s schedules to work is a major hassle, but it is well-worth it. A large number of restaurant employees quit because they cannot get their work schedules to mesh with their lives.

Be upfront about scheduling, and take the time to make sure people have the time off that they need. Also, post schedules as far in advance as possible. People want consistent hours: it gives them the ability to make appointments without constantly worrying about work.

3. Poor Management and Poor Relationship With (Gulp) Boss

Bad bosses and management are frequently cited as the reason people leave their jobs. Bosses and the management team are integral to everyone’s work day, and they have the ability to make an employee’s life awful.

So, quick check on your managers: are they rolling up their sleeves and getting into the work, or are they lounging around and doing as little as possible? Are they relaying important information to everyone in a timely and transparent way, or do they wait until the last possible second to mumble something about people calling in? Do they provide directions clearly and assign tasks, or are they changing their orders constantly and garbling directions?

If you see a lot of the second scenarios, it’s time to upgrade your management team. Write policies for them that promote consistency and clear communication and fire the layabouts.

Hey, no one said being the boss was easy. It is, however, easier if you develop working relationships with your employees and treat them with respect. You don’t have to be everyone’s buddy, but you have to spend a little time with everyone, providing feedback about work and supporting the cohesiveness of your team. Then you will see the management team in action and the interaction of co-workers first hand, which will give you a good handle on the situation in your restaurant.

4. No Challenge And No Opportunities

Restaurant work suffers unfairly from the stigma of being a ‘temporary’ job. The perception is that you can’t have a career in the industry. Your employees want to disprove the perception; they believe that they can have that career, and that it will use all their grace and skills, bringing them job satisfaction. Otherwise, their work is just tedious time-filling.

You can help them find job satisfaction by providing them with opportunities to try new things and stretch their skills. Encourage innovation and reward folks who excel. You can set up a suggestion box for new ideas, and give new responsibilities to people who seem to be getting bored at work. Maybe the cashier can start trying out waitressing, or the sou chef can introduce a new menu item. People just want to feel challenged at work.

The restaurant industry may suffer from high turnover, but you don’t have to. If you work on these aspects of your restaurant, you will find more employees staying for longer.

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11 Summer Movie Themed Cocktails to Brighten Your Booze Menu

11 Summer Movie Themed Cocktails to Brighten Your Booze Menu

Summer movie hits are rolling in and so are thirsty patrons looking something fresh and new at the bar. Have some fun with this Summer’s movie themes and create cocktails inspired by feisty heroines, brooding heroes, aliens, and emojis.

1. Wonder Woman

Strong and sweet. Feminine, but not to be taken lightly!

  • 1 1/2 oz White rum
  • 1/2 oz Brandy
  • 1/2 oz Triple sec
  • 1/2 oz Fresh lemon juice
  • Long strip lemon peel to serve – golden lasso of truth!

Combine in a shaker with ice. Shake. Strain into martini glass or a blue glass tumbler. Serve with a lemon lasso garnish!

2. Alien: Covenant

Use charcoal infused tequila to make this black as space cocktail.  Add 2 tbsp of activated charcoal powder to a full bottle of tequila and shake to make.

  • 1 1/2 oz Charcoal-infused tequila
  • 1 1/2 oz St-Germain
  • 3/4 oz Lime juice
  • Two dashes of orange bitters
  • Three sprays of a smokey scotch to finish

Combine first four in a shaker with ice. Shake. Strain into a tumbler with ice. Spritz with scotch before serving.

3. The Emoji Movie

This cocktail looks exactly like the classic cocktail emoji icon!

  • 2 oz Cachaça 51
  • 1/2 oz Orange juice
  • 1 oz Passion fruit juice
  • 1/2 oz Grenadine
  • Lime and cherry on pick for garnish

Pour grenadine into a hurricane glass and top with crushed ice. Combine Cachaça 51, orange and passion juice into a shaker with ice. Shake. Pour over ice. Garnish with lime wedge and cherry.

4. Spider-Man: Homecoming

Spiderman may be in high school, but the rest of us can still drink! Layer this colorful cocktail to get those classic Spidey colors.

  • 1/2 oz Curaçao blue
  • 1 oz Vodka
  • Splash of seltzer
  • 1/2 oz Grenadine
  • A wedge of lime
  • Cherry to serve

Rim a tall glass with lime. Pour in the grenadine then fill with large ice cubes. Slowly add vodka, then seltzer and top with blue curacao. Squeeze lime over top and garnish with a cherry.

5. Pirates of the Caribbean: Dead Men Tell No Tales

Island feel with a cheeky kick!

  • 1 1/2 oz Coconut rum
  • 1/2 oz Banana schnapps
  • 1/2 oz Peach schnapps
  • 1/2 oz Cranberry juice (not juice cocktail)
  • 1/2 oz Fresh orange juice
  • 2 oz Fresh pineapple juice
  • Pineapple on sword pick to serve

Combine first three into a shaker with ice. Shake. Strain into highball glass with ice and top with juices in the order listed for a sunset effect. Garnish with pineapple sword. Yo ho ho!

6. Atomic Blond

Looks sweet and unassuming in the glass. Little do they know…

  • 2 oz Rye whiskey
  • 1⁄2 oz Yellow Chartreuse
  • 1⁄2 oz Sweet vermouth
  • 1 dash Angostura bitters
  • 1 dash Orange bitters
  • Lemon twist to garnish

Combine a mixing glass over ice. Stir. Strain int a chilled whiskey glass. Garnish with lemon.

7. The Hitman’s Bodyguard

Because Samuel L. Jackson would just order whiskey, but Ryan Reynolds needs it with a bit of a flair!

  • 2 oz Whiskey
  • 1/2 oz Fresh lime juice
  • 1 oz Canada Dry ginger ale

Fill an old-fashioned glass with ice. Add ingredients in order listed. Done and done.

8. Baby Driver

A chocolaty twist on the classic White Russian. Chocolate milk for the kid, liquor for the adults.

  • 6 oz Cold chocolate milk
  • 1 1/2 oz Vodka
  • 1 1/2 oz Kahlúa
  • Mini brownie bite to garnish

Combine in a shaker with ice. Shake. Strain into a pint glass with ice. Cut part way into the brownie and settle on edge of glass to garnish.

9. The Dark Tower

Light on the bottom; looming dark on top.

  • 2 oz Dark rum
  • 3/4 oz Fresh lemon juice
  • 3/4 oz Spiced simple syrup
  • Cherry with stem to garnish

Combine lemon juice and syrup into shaker with lots of ice. Shake. Strain into highball glass with fresh ice. Float rum on top. Garnish with cherry.

10. Despicable Me 3

Everyone’s favorite little yellow Minion buddies – in cocktail form. Perfect for parents who need a pick me up after hearing “minion-speak” all day!

  • 1/5 oz Absinthe
  • 1/5 oz Whiskey
  • 1/5 oz Gin
  • 1/5 oz Vodka
  • 1/5 oz Cinnamon Schnapps

Combine in shaker with ice. Shake. Strain into shot glass or tumbler with fresh ice.

11. Transformers: The Last Night

In honor of Optimus Prime, friend or foe?

  • 1/2 oz Raspberry vodka
  • 1/2 oz Watermelon Schnapps
  • 1/2 oz Peach Schnapps
  • 1 Splash Grenadine
  • 4 oz Lemon-lime soda
  • 1 oz Sweet and sour mix
  • 1/4 oz Blue Curaçao Fill

Fill tall glass with ice. Layer ingredients in order listed topping up with ice before adding soda as needed. Add the Blue Curacao carefully so as not to lose the layers! Serve with a straw.

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7 Ways to Make This Summer Your Best Hiring Season Yet

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While some people look forward to summer as a time to relax, go on vacation, and maybe hit the beaches, for many others, it’s the time to look for work. Restaurants and retailers, meanwhile, need to think about hiring some great staff. You may lose some employees over the summer. At the same time, you’re ready to gear up for what will hopefully be a busy season. How do you maximize your hiring efforts? Let’s look at 7 ways to make this summer your best hiring season yet!

1. Emphasize Job Perks

Don’t forget to mention as many benefits as possible, even if they’re not formal benefits. Flexible hours, casual dress codes, and free meals are all perks that make your job listings more appealing. This is also a chance to engage in some brand building, boasting about why it’s great to work in your store, restaurant, hotel, or other establishment.

2. Make Your Job Postings Mobile-Friendly

Keep in mind that most of your job applicants are millennials who tend to access the internet via smartphone and other mobile devices. This means that it’s crucial to make your listings and the application process as mobile-friendly as possible. People scrolling through jobs on their phones are unlikely to spend much time dealing with clunky applications made for desktops. Test your listings on mobile phones and tweak them until they’re simple for mobile users to fill out.

Or, use a job listing service like, Sirvo, that does all of that for you! Signing up and posting a job is easy, SEO and mobile-friendly.

3. Make the Application Process as Painless as Possible

Along with making your application mobile-friendly, keep it short and simple. Many employers use outdated job applications that ask lots of irrelevant questions. For example, do you really need to know the address of someone’s elementary school? Longer applications discourage applicants. You can always ask more questions at job interviews. For the application itself, focus on essentials.

4. Be Clear About Who You Need

Your hiring process will proceed more smoothly if you don’t waste time interviewing people who aren’t qualified. Make sure you specify the qualifications in your postings. For example, if you need someone with at least a year of customer service experience, mention this in your ad. If the job requires people to work weekends and holidays, don’t forget to post this.

5. Look For Strong People Skills

Soft skills, also known as people skills or emotional intelligence, are primary in the hospitality industry. These are difficult to gauge on job applications. During interviews, however, the ability to spot these skills is crucial. When you or your hiring managers interview applicants, don’t simply ask informational questions. Ask them how they’ve handled challenging situations or conflicts with customers at past jobs. The way applicants answer such questions is just as important as their actual answers. Do they respond to such inquiries with confidence and openness or are they nervous or defensive? The better you are at identifying people skills, the more success your hiring process will be.

6. Advertise for Seasonal Help

Many of the people you’re looking to hire over the summer are only looking for temporary, seasonal jobs. While this is obvious, it actually helps to specifically advertise for summer or seasonal jobs and to use these keywords in your listings. Otherwise, potential applicants might assume that you’re only looking for long-term hires. If some hires end up turning into full-time, so much the better. However, you’ll get a better response to your ads and listings if you appeal to students looking for summer jobs.

7. Recruit on Social Media

If you want to get the best possible response from your job postings, it makes sense to go where your audience is. More and more people, especially millennials, are spending large portions of their time on social media sites. You have many options, whether you list jobs on Facebook, Twitter, Instagram, Snapchat or elsewhere. If you want to amp up your recruiting efforts, you can use paid advertising. Aside from inviting people to visit your website, you can promote job fairs. With social media, you can also recruit among your customer base. People who like your Facebook page or subscribe to your Twitter feed are excellent potential recruits.

If you don’t want to do all the heavy lifting, use an online job board that puts social front-and-center. Sirvo makes it easy for you to share your job with your network by providing share buttons on your job listing that you or your staff can easily click and share to various social networks. Or share by simply copy and pasting the job listing URL. Once pasted, the job listing will display the job title, company photo and job introduction, all of which are SEO compatible. Hooray!

Follow these tips and trick and we’re sure you’ll make this Summer hiring season the best yet! 

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