Denver Labor recovers tens of thousands for food and beverage workers

the Auditor at your service

Timothy M. O’Brien, CPA, Auditor of Denver

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Denver workers are getting back the wages they’ve earned. And in many cases, it starts with outreach, education, and worker complaints. My Denver Labor team works every day to prevent wage violations, especially in the food and beverage industry, where workers are at higher risk of wage theft. That’s why we recently attended the Colorado Restaurant and Bar Show.

We engaged with restaurant and bar owners, managers, and staff, shared information on tip credit and wage laws, answered questions, and provided practical steps for compliance. Our staff also joined a conversation with the CRA Chef Alliance to hear their perspectives about labor and restaurant challenges. All these interactions help businesses proactively address potential issues before they affect workers and educate us about the restaurant climate.

Denver Labor recovers tens of thousands for food and beverage workers

During our wage investigations these past months, we have also worked collaboratively with businesses that wanted to make things right. In one case, an investigation into a Denver tavern found that the business improperly distributed tips to ineligible workers, that one employee had been paid only tips, and that another had received wages below the minimum requirements. The employer acknowledged these mistakes and worked with us to correct the issues.

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This included repaying misdirected tips, paying tipped employees an additional $3.02 per hour, and returning unpaid wages to the other two workers. In total, 27 workers recovered $75,519. In another investigation initiated by an anonymous complaint, workers said they weren’t paid for all their hours and were required to share tips with the owner. Our investigation confirmed that the tip-sharing policy was invalid because owners aren’t allowed to participate in employee tip pools.

Denver Labor recovers tens of thousands for food and beverage workers

The case ended with 69 workers receiving $36,926 in wage restitution. A separate case, triggered by an anonymous complaint, revealed that multiple workers had been paid below the required tipped minimum wage for an extended period. My office opened an investigation and requested payroll records from the employer. The records confirmed that several workers had been paid below the tipped minimum wage for multiple years.

Denver Labor worked with the employer, who cooperated fully and provided all requested documents. As a result of our investigation, the business returned $16,618 to 12 workers. In every case, employers worked with my team to quickly return unpaid wages to workers. When businesses cooperate with us and follow the law, the entire city wins: Workers can pay their bills and support their families, honest businesses compete on a level playing field, and our communities become stronger and more stable financially.