📅 2026 Update: Changes in Colorado Overtime Laws

Since the original article was written, significant changes have occurred regarding overtime laws at the federal level. The U.S. Department of Labor (DOL) updated salary thresholds for exempt employees and then reverted back to previous standards due to a court ruling.

The information in this section outlines these key changes that affect workers and employers in Colorado.

📈 Recent Salary Changes

In April 2024, the DOL raised the standard salary level for exempt employees under the Fair Labor Standards Act (FLSA). This new rule set the minimum salary level to $1,059 per week and the highly compensated employee threshold to $155,000 annually. However, this rule was vacated by a court in November 2024, returning the salary level to $684 per week and the highly compensated threshold to $107,432.

📅 Future Updates Planned

The DOL plans to update salary thresholds every three years. The next update is set for July 1, 2027. This ongoing adjustment aims to keep the salary levels aligned with current earnings data, which is crucial for understanding eligibility for overtime exemptions.

🔍 Understanding Exemption Criteria

Employers must determine if employees meet the criteria for exemption under the FLSA. This involves evaluating the salary basis test, salary level test, and duties test. These criteria help clarify which employees are entitled to overtime pay.

📄 Free Resources Available

The DOL offers various guidance materials and resources to help both employers and employees understand overtime regulations. These resources can assist in navigating the complexities of overtime laws and determining eligibility for overtime pay.

📌 Key Points Summary

  • The minimum salary level is currently $684 per week.
  • The highly compensated employee total annual compensation is $107,432.
  • Future salary updates are scheduled every three years, starting in 2027.
  • Employers should assess exemption criteria to determine overtime eligibility.
  • Free resources from the DOL are available for further assistance.

💡 Tips for Understanding Overtime Laws

Review the specifics of your situation with your attorney to ensure you're fully aware of your rights and responsibilities under the law.

📊 Know Your Rights

Employees should be aware of their rights regarding overtime pay. Understanding the FLSA and state-specific laws can help in determining if you are entitled to overtime pay.

📝 Keep Accurate Records

Employers are required to maintain accurate records of hours worked and wages paid. This documentation is critical for ensuring compliance with overtime regulations.

📅 Check for State Variations

State overtime laws may provide additional protections beyond federal standards. It’s important to check with your state’s labor department for any specific regulations.

🔄 Stay Updated on Changes

The DOL plans to update salary thresholds regularly. Staying informed about these changes can help both employers and employees adapt to new regulations.

🛠️ Utilize Available Resources

Take advantage of the guidance materials and resources offered by the DOL. These can provide clarity on overtime regulations and assist in understanding your rights.

🔄 Assess Exemption Status Regularly

Employers should regularly review the exemption status of employees. Changes in job duties or compensation may affect whether an employee qualifies for overtime pay.

❓ Frequently Asked Questions

❓ What is the current minimum salary level for overtime exemption?

The minimum salary level for exemption under the FLSA is $684 per week as of November 15, 2024.

❓ How often will the DOL update salary thresholds?

The DOL plans to update salary thresholds every three years, with the next update scheduled for July 1, 2027.

❓ Who qualifies as a highly compensated employee under the FLSA?

A highly compensated employee must have total annual compensation of $107,432 to qualify for exemption under the FLSA.

❓ What are the criteria for determining exemption status?

Employers should assess the salary basis test, salary level test, and duties test to determine if employees can be classified as exempt under the FLSA.

❓ Are there state-specific overtime laws?

Yes, state overtime laws may provide additional protections beyond federal standards. It is advisable to check with state labor departments for specific regulations.

❓ What should employers keep track of for compliance?

Employers are required to keep accurate records of hours worked and wages paid to employees to ensure compliance with FLSA regulations.

⚖️ Recent Court Cases Related to Overtime Laws

Recent court rulings have impacted overtime laws, particularly regarding exemption criteria and salary thresholds. These rulings illustrate how legal interpretations can affect employee rights and employer obligations.

For more information on recent rulings, see more rulings on the news page.

End of October 2026 Update





Colorado Overtime Laws: A Comprehensive Guide

Overtime laws in Colorado are designed to protect employees from being overworked and not being fairly compensated for their extra time and effort. The law requires employers to pay eligible employees at least one and a half times their regular rate of pay for any hours worked beyond the state’s standard 40-hour workweek. This guide will cover the rules and regulations that apply to overtime in Colorado, including exemptions, penalties, and how to file a complaint if your employer violates the state’s overtime laws.

What is Overtime in Colorado?

In Colorado, overtime is any time worked beyond 40 hours in a workweek. According to the state’s Department of Labor and Employment (CDLE), a workweek is defined as “any seven consecutive 24-hour periods,” regardless of the day or week on which the workweek begins. Colorado employers are required by law to pay non-exempt employees overtime pay of no less than one and a half times their regular rate of pay for all hours worked over 40 in a workweek.

Colorado Overtime Laws

Who is Entitled to Overtime Pay in Colorado?

Not all employees are eligible for overtime pay in Colorado. According to the CDLE, an employee must meet two requirements to be considered non-exempt and eligible for overtime pay:

1. They must be paid on an hourly basis or be salaried and earn less than $684 per week ($35,568 per year) as of January 1, 2020;

2. They must perform non-exempt work, which is defined as work that is covered by Colorado wage and hour laws and is not exempted from overtime requirements.

In general, employees who are paid a salary and perform executive, administrative, or professional duties are exempt from overtime pay if they earn a salary that meets certain criteria set by the federal government. However, Colorado law also provides for some additional exemptions that do not exist under federal law.

Exemptions from Overtime in Colorado

The following employees are typically exempt from overtime in Colorado:

1. Executive, administrative, or professional employees who meet the state’s criteria for exemption. This includes employees who are paid a salary of $684 per week or more and primarily perform executive, administrative, or professional duties.

2. Certain commission-based employees who work in the retail, service, or wholesale sectors, as long as more than half of their total earnings are from commissions.

3. Outside salespersons who spend more than 50% of their job duties selling products or services outside of their employer’s place of business.

4. Some employees in agricultural and farming industries.

5. Casual babysitters and those who provide companionship services to individuals who are unable to care for themselves.

6. Certain types of workers in the transportation industry, such as drivers and loaders who must comply with federal regulations.

7. Some other occupations, such as certain computer professionals and journalists, who may be exempt from overtime under state law.

It’s important to note that just because an employee is paid a salary does not necessarily mean they are exempt from overtime pay. Employers must carefully review the state’s criteria for exemption and classify employees accordingly to avoid any potential violations of Colorado’s overtime laws.

📝 See Also

Calculating Overtime Pay in Colorado

To calculate overtime pay in Colorado, an eligible employee’s regular rate of pay must be determined. The regular rate of pay is the employee’s hourly rate of pay or the equivalent hourly rate for salaried employees. To calculate the hourly rate for salaried employees, divide the salary by the number of hours worked in the workweek.

For example, if an employee earns a salary of $600 per week and works 50 hours in a workweek, their regular rate of pay is $12 per hour ($600 ÷ 50 = $12). To calculate their overtime pay, simply multiply their regular rate of pay by 1.5 for all hours worked beyond 40 in a workweek.

Using the same example, an employee who works 50 hours in a workweek is entitled to 10 hours of overtime pay at one and a half times their regular rate. Their overtime pay would be calculated as follows: 10 hours x $12 x 1.5 = $180.

If an employee works two or more separate jobs for the same employer during a single workweek, their overtime rate must be calculated based on the combined hours worked in all positions.

Additionally, employers cannot average an employee’s hours worked over two or more workweeks to avoid paying overtime. Overtime must be calculated on a weekly basis, and all eligible employees must be paid accordingly.

What Penalties Apply to Employers Who Violate Colorado’s Overtime Laws?

Employers who violate Colorado’s overtime laws may be subject to penalties, fines, and legal action. The CDLE is responsible for enforcing the state’s wage and hour laws and investigating employee complaints. If an employee files a complaint with the CDLE, the agency will conduct an investigation and may take legal action against the employer.

In addition, employers who violate the state’s overtime laws may be liable for damages, including back pay, liquidated damages (equal to the amount of the unpaid overtime), and attorney fees. In some cases, employers may be required to pay fines and penalties, which can range from $50 to $1,000 per violation.

How to File a Complaint for Overtime Violations

If you believe your employer has violated Colorado’s overtime laws, you may file a complaint with the CDLE. Complaints can be filed online, by phone, or by mail. The CDLE will take your complaint seriously and begin an investigation if it determines that your employer has violated the state’s overtime laws.

To file a complaint, you will need to provide information about your employer, including their name and address, your job title and duties, your hourly rate or salary, and the number of hours you have worked. You will also need to provide any documentation you have to support your claim, such as time cards, pay stubs, or other records.

Conclusion

Colorado’s overtime laws are designed to protect employees from being overworked and underpaid. All eligible employees must be paid at least one and a half times their regular rate of pay for any hours worked beyond 40 in a workweek. Employers who violate these laws can face penalties, fines, and legal action. If you believe your employer has violated Colorado’s overtime laws, you should file a complaint with the CDLE to protect your rights and ensure that you are fairly compensated for your hard work.

What Are the Colorado Overtime Laws?

According to the Colorado Minimum Wage Order Number 28, there are situations where employees would qualify for what’s commonly called overtime pay.

What’s overtime pay? The Colorado overtime laws are as such:

1. Overtime Calculations According to Colorado Overtime Laws

2. Workweek Definitions for Colorado Overtime Laws

3. The Law of a “Regular Rate of Pay”

Pay close attention, because these specifics on the Colorado overtime laws may differ quite a bit from other states:

Starting With the Overtime Calculations on Colorado Overtime Laws

The calculative standard does apply when it comes to overtime for workers: overtime is 1 ½ times the regular rate of pay. An example would be a regular wage of $6 per hour would have overtime if applicable of $9 per hour for every hour of overtime.

It’s important, though, to understand that Colorado specifically states as law that overtime can legally be applied to these three situations:

1. Excess of 40 Hours Per Workweek

2. Excess of 12 Hours Per Workday

3. Excess of 12 Consecutive Hours Per Workday (Excluding Duty-Free Meal Periods)

By law, the greatest amount of the three is considered for overtime.

In Colorado, What Is Considered a ‘Workweek’?

A workweek in Colorado is considered a 7-day period. Typically, it starts on the same day and hour – for instance, Sunday on 9 AM to Sunday on 9 AM would be considered a ‘workweek.’

Another way of thinking about it would be to see a workweek as a fixed period of hours totaling 168 – that would be seven consecutive 24-hour shifts. How those hours are divvied up for employees would be up to the discretion of the employer.

It’s also crucial to know that in Colorado hours averaged for overtime cannot amount to two or more workweeks. At the most, overtime must be calculated weekly.

The Regular Rate of Pay Standard

This is paramount to understand, in that the “regular rate of pay” by Colorado law is characterized by a rate per hour. Overtime is then calculated by dividing the total wages in any given workweek by the hours actually worked for that specific workweek.

Because of this, it’s actually possible to determine overtime for something other than an hourly rate: such as piecework, salary, or even commission. As long as an employee logs hours in and keeps an eye on the paycheck, it’s possible that overtime can be allowed under Colorado law.

That regular rate of pay can also include these factors:

1. Shift Differentials

2. Non-Discretionary Bonuses

3. Production Bonuses

Under Colorado law, though, you can expect these factors to not be included in the regular rate of pay standard:

1. Business Expenses

2. Bona Fide Gifts

3. Discretionary Bonuses

4. Employer Investment Contributions

5. Vacation Pay

6. Holiday Pay

7. Sick Leave

8. Jury Duty

Calculating Overtime

Here’s an example of how a worker can determine overtime with a salary:

Let’s say the worker does a job at a salary of $30,000/year. Roughly, that’s about $625 per week.

Let’s say the worker by chance pulled in about 50 hours in that week. That’s 10 hours of overtime according to Colorado law.

What the worker has to do then is divide the number 625 with the total number of hours worked, which is 50. The result is $12.50 an hour. That would be considered the “regular rate of pay” for this particular salary.

Now that you have that regular rate of pay, you take half of that and apply it to the overtime hours worked. $6.25 an hour for 10 hours of overtime. The total would be $62.50.

Simply add the $62.50 as overtime pay onto the regular rate, which is $625 for that week, and that’s all you need to do to figure out your overtime. The total for that check would be $687.50.