(650) 332-8623Colorado Overtime Laws: Your Guide to Rates, Statutes, Calculations, and More (2025)
Explore Colorado’s 2025 overtime laws, including pay rates, thresholds, penalties, and eligibility. Stay informed on key labor regulations.
Colorado Overtime Rates and Statutes
1.5x
Colorado's Primary Overtime Pay Rate
Under Colorado labor laws, employees are entitled to overtime pay at 1.5 times their regular hourly rate. This rate applies to hours worked beyond 40 in a workweek, 12 in a single day, or 12 consecutive hours, whichever results in higher pay.
40 Hours /Week or 12 Hours /Day
Threshold to Receive Overtime in Colorado
Employees qualify for overtime if they work more than 40 hours in a week, more than 12 hours in a single day, or more than 12 consecutive hours. Colorado prohibits averaging hours across weeks or providing compensatory time off as a substitute for overtime pay.
Standards (COMPS) Order #39
The Main Overtime Statute(s) in Colorado
The Colorado Overtime and Minimum Pay Standards (COMPS) Order #39 governs state overtime laws. These regulations are aligned with the Colorado Wage Act and Federal Fair Labor Standards Act (FLSA). COMPS Order #39 includes detailed rules on overtime, minimum wage, rest breaks, and employer obligations
DLSS
Division of Labor Standards and Statistics is Responsible for Enforcing Overtime Laws in Colorado
The Division of Labor Standards and Statistics within the Colorado Department of Labor and Employment enforces overtime laws. DLSS oversees wage claims, employer compliance, and provides resources for understanding and adhering to Colorado Labor laws.
How to Calculate Overtime Pay in Colorado
Calculating overtime pay in Colorado is straightforward but requires understanding the regular rate of pay, which includes all earnings such as hourly wages, bonuses, commissions, and piece-rate payments. Here’s a step-by-step guide:
Standard Overtime Calculation
- Identify the regular rate of pay: This is the total weekly earnings divided by total hours worked during that week. For example, if an employee earns $800 in a 40-hour week, their regular hourly rate is $20.
- Apply the overtime multiplier: Overtime in Colorado is calculated at 1.5 times the regular rate of pay for hours worked beyond:
- 40 hours in a workweek.
- 12 hours in a single workday.
- 12 consecutive hours, regardless of the start time.
Example: If an employee works 50 hours in a week, they are entitled to 10 hours of overtime. At a regular rate of $20, their overtime pay would be $30/hour ($20 x 1.5). Total overtime pay for 10 hours = $300.
Overtime for Tipped Employees
- Determine the tipped employee’s regular rate of pay: Include tips that meet or exceed the minimum wage plus any additional wages paid by the employer.
- Colorado’s minimum wage for 2024 is $14.42 per hour.
- Calculate overtime: The overtime rate is based on the regular rate of pay, including tips. For example, if a tipped employee’s total earnings average $18/hour, their overtime rate would be $27/hour ($18 x 1.5).
Special Cases
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Multiple pay rates: For employees with different pay rates in a single workweek, Colorado uses a weighted average method. Add all wages earned, divide by total hours worked, and apply the 1.5x overtime multiplier.
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Non-hourly workers: Salaried or commission-based employees must calculate their regular rate by dividing total weekly earnings by hours worked, then apply the overtime multiplier to any eligible hours.
Colorado overtime laws under COMPS Order #39 ensure fair pay for extended work hours. Understanding these rules can help employees and employers remain compliant.
Who's Eligible For Overtime Pay in Colorado?
Generally, all hourly workers in Colorado are eligible for overtime pay. This includes non-exempt employees who work more than 40 hours in a workweek, 12 hours in a single workday, or 12 consecutive hours, whichever results in more overtime pay.
Salaried employees earning less than $55,000 annually (or $1,057.69 weekly) are typically eligible for overtime pay under Colorado Labor laws. They must receive 1.5 times their regular rate of pay for hours worked over the standard thresholds. The annual salary threshold is periodically adjusted.
Employees earning above $55,000 per year may be exempt from overtime laws if their roles meet specific exemption criteria. This includes jobs requiring the exercise of independent judgment and discretion, with primary duties involving management, administrative, or professional responsibilities.
Certain salaried employees in executive, administrative, or professional roles may be exempt if they earn above the salary threshold and their primary duties meet the state-defined exemption criteria.
Employees who spend more than 50% of their time conducting sales activities outside the employer’s premises are exempt from overtime under Colorado rules.
Drivers governed by federal Department of Transportation (DOT) regulations, such as those under Title 49, are exempt from state overtime laws.
Employees under collective bargaining agreements that provide for alternative work arrangements or higher wages than state requirements may be exempt from overtime.
Additional roles exempt from Colorado overtime laws include
- certain IT professionals,
- commissioned sales employees earning more than 50% of their income through commissions, and
- workers in select agricultural occupations.
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Colorado vs. Federal Overtime Laws Compared
12 Hours /DayColorado Overtime Threshold
Colorado’s overtime laws are stricter than federal guidelines in some aspects. Employees are entitled to overtime pay after working:
- 12 hours in a single day,
- 12 consecutive hours, or
- 40 hours in a workweek, whichever results in greater compensation.
40 Hours /WeekFederal Overtime Threshold
Under the federal Fair Labor Standards Act (FLSA), employees are entitled to overtime pay for all hours worked beyond 40 in a workweek.
- A “workweek” is defined as a fixed, recurring period of 168 hours (seven consecutive 24-hour days).
- Workweeks can start on any day, depending on the employer’s payroll schedule
1.5xColorado Overtime Rate
Overtime pay in Colorado is calculated at 1.5 times the employee’s regular rate of pay. This applies to all overtime hours worked beyond the thresholds mentioned above.
1.5xFederal Overtime Rate
The FLSA requires overtime pay at 1.5 times the employee’s regular hourly rate for all non-exempt employees who exceed 40 hours in a workweek. Federal laws do not provide additional rates like double time.
$55,000 /yearColorado Threshold for Salaried Employees
Salaried employees earning less than $55,000 annually (or $1,057.69 weekly) are eligible for overtime under Colorado law unless their roles meet specific exemption criteria. This threshold is higher than the federal limit, ensuring broader coverage for workers.
$58,656 /yearFederal Threshold for Salaried Employees
Beginning January 1, 2025, the FLSA sets the salary exemption threshold at $58,656 annually ($1,128 per week). Roles below this threshold are eligible for overtime unless exempt due to job duties.
CORoles Exempt from Overtime
Roles exempt from Colorado overtime laws include:
- Executive, administrative, and professional employees earning above the salary threshold.
- Outside salespeople spending 50% of their time outside the office.
- DOT-regulated drivers under federal transportation laws.
- Employees in collective bargaining agreements with alternative work schedules
FederalRoles Exempt from Overtime
Federal law exempts:
- Executive, administrative, and professional employees.
- Computer-related employees.
- Outside sales employees.
- Highly compensated employees earning over $151,164 annually, with at least $1,128 per week paid as salary.
Misconceptions About Colorado Overtime Laws
Some employers mistakenly believe that only employees paid hourly are eligible for overtime. This misconception can result in salaried employees being unfairly denied overtime compensation.
In Colorado, salaried employees earning less than $55,000 annually are generally eligible for overtime. Exemptions depend on job duties, not payment structure. Both hourly and qualifying salaried employees are entitled to overtime under state thresholds.
Another common misconception is that all employees, regardless of their job type or earnings, are automatically entitled to overtime pay.
Colorado’s labor laws exempt certain roles, such as executive, administrative, and professional positions, as well as DOT-regulated drivers and outside salespeople. These exemptions depend on specific criteria, including salary thresholds and job responsibilities.
Some employers believe they can override state overtime laws by implementing custom overtime policies or substituting comp time for overtime pay.
Colorado prohibits employers from substituting comp time for overtime pay. Overtime must be paid at 1.5 times the regular rate for qualifying hours. Employers cannot override these regulations unless a collective bargaining agreement is in place.
There’s a belief that Colorado mandates double-time pay for working beyond a certain number of hours in a day or week.
Colorado labor laws do not require double-time pay. Employers are only obligated to pay overtime at 1.5 times the employee’s regular hourly rate, even for extended work hours.
Some employers believe they are not required to pay overtime if the employee worked additional hours without prior approval.
Colorado labor laws require employers to pay overtime for all hours worked beyond the legal thresholds, regardless of whether the employer pre-approved those hours. Employers may address unapproved overtime through workplace policies, but payment cannot be withheld.
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Penalties for Overtime Noncompliance in CO
Double DamagesPenalty for Willful Overtime Violations
Employers who fail to pay overtime wages in bad faith or intentionally violate overtime laws may be required to pay double damages—twice the amount of unpaid overtime wages. This penalty ensures that workers are compensated fairly while discouraging willful violations.
Up to 300% of Wages OwedFailure to Pay Overtime After Demand
If an employer does not pay overtime wages within 14 days of a written demand, they face penalties of 125% to 300% of the unpaid overtime wages, depending on whether the violation was willful. Penalties escalate if payment delays exceed 60 days, further increasing employer liability.
$50 /DayDaily Penalties for Late Overtime Payments
Employers who delay overtime payments may incur fines of $50 per day, beginning on the date the overtime wages were due. These penalties can add up significantly over time, pressuring employers to resolve overdue payments quickly.
$250 /MonthFailure to Provide Accurate Overtime Records
If employers fail to issue proper pay statements detailing overtime wages, they may be fined $250 per employee per month. This penalty ensures transparency in wage reporting, including overtime.
$1,000 to $5,000Willful Misclassification
If employees are misclassified to avoid paying overtime, fines can range from $1,000 to $5,000 per violation, with repeat offenses facing harsher penalties. Misclassification often leads to unpaid overtime, making this penalty a key enforcement tool.
Navigating Overtime Requirements in Colorado
Know What to Do as an Employer
- Understand Colorado Overtime Laws: Stay updated on daily and weekly overtime thresholds and exempt vs. non-exempt roles.
- Implement Reliable Time-Tracking Systems: Use tools to monitor hours worked and capture overtime accurately.
- Train Managers and HR Staff: Educate teams on labor laws, overtime calculations, and exemptions.
- Audit Payroll Systems Regularly: Review payroll for accurate overtime calculations, including bonuses and commissions.
- Maintain Detailed Employee Records: Keep comprehensive records of hours worked and overtime pay for transparency.
- Develop Clear Overtime Policies: Create written policies aligned with Colorado laws and communicate them to employees.
- Consult Legal Professionals: Seek expert advice for navigating complex overtime compliance scenarios.
Know Your Rights as a Worker
- Understand Your Classification: Know if you are exempt or non-exempt to determine overtime eligibility.
- Track Your Hours: Maintain a personal log of hours worked, including overtime.
- Familiarize Yourself with Overtime Pay Rates: Understand how overtime is calculated, including bonuses and commissions.
- Address Pay Discrepancies Early: Discuss any errors in overtime pay with your employer before seeking external help.
- Know Your Legal Resources: Learn your rights to file complaints with the Colorado Division of Labor if needed.
Common Overtime Pay Challenges for Employers in Colorado
- Misclassifying Employees: Incorrectly classifying workers as exempt or non-exempt can lead to penalties.
- Inaccurate Recordkeeping: Poor tracking of hours worked may result in disputes and fines.
- Miscalculating Overtime Pay: Errors, especially with bonuses or varying pay rates, can cause underpayment claims.
- Ignoring Daily Overtime Rules: Overlooking the 12-hour daily overtime rule can lead to compliance issues.
Overtime Pay Solutions for Employers in Colorado
General Best Practices for Colorado Overtime Laws
- Maintain Transparency: Clearly communicate overtime policies and expectations to employees.
- Create a Proactive Compliance Strategy: Update internal policies to align with Colorado overtime law changes.
- Encourage Internal Reporting: Establish a system for employees to report payroll discrepancies for quick resolution.
- Engage Legal Counsel: Consult legal experts to review compliance strategies and address potential violations.
Final Thoughts
Understanding and complying with Colorado’s overtime laws is essential for both employers and workers. Employers must ensure accurate time tracking, proper classifications, and adherence to state-specific rules to avoid costly penalties. For employees, knowing your rights and staying informed about overtime regulations can help you advocate for fair pay.
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No, Colorado does not require overtime pay after 8 hours of work in a day. However, state overtime laws mandate that employees be paid 1.5 times their regular hourly rate after working 12 hours in a single day, 12 consecutive hours regardless of shift, or 40 hours in a workweek.
These thresholds are stricter than federal rules, which only consider weekly hours. Employers must comply with Colorado’s specific thresholds to ensure proper overtime compensation for eligible employees.
Colorado’s most recent overtime rules, outlined in the Colorado Overtime and Minimum Pay Standards (COMPS) Order #39, require employers to pay overtime for work beyond 40 hours in a workweek, 12 hours in a single day, or 12 consecutive hours, whichever results in more overtime pay.
Additionally, the salary threshold for exempt employees was increased to $55,000 annually in 2024. Employers must also ensure proper classification of employees as exempt or non-exempt based on job duties and salary thresholds.
There is no maximum limit on how many hours an employee can legally work in a single day in Colorado, provided they are compensated fairly. Employers must pay overtime after an employee works 12 hours in a day or 12 consecutive hours, whichever is greater.
However, workers are entitled to breaks under Colorado law, including a 30-minute unpaid meal break for shifts over 5 hours and 10-minute rest breaks for every 4 hours worked.
Colorado’s overtime law requires that eligible employees receive 1.5 times their regular hourly rate for hours worked beyond 40 in a workweek, 12 in a single day, or 12 consecutive hours, whichever provides more overtime pay. These rules, established under the COMPS Order #39, apply to most non-exempt workers.
Employers must also account for overtime when calculating pay that includes bonuses or commissions to ensure compliance with both state and federal laws.
