Colorado: Wage and Hour Change is a Comin’!

On January 22, 2020, the Colorado Department of Labor and Employment (CDLE) published a final rule for the Colorado Overtime and Minimum Pay Standards (COMPS) Order #36, with sweeping changes to the state’s wage and hour laws. Specifically, COMPS replaces the Colorado Minimum Wage Order in an attempt to provide clarity to the rules. Most significantly, COMPS will now apply to all industries.

There were a few modifications from the proposed rule to the final rule. Of particular note, the increased minimum salary requirement for exempt employees was reduced from $42,500 to $40,500, and the increase to $40,500 got pushed back from July 1, 2020 to January 1, 2021. However, the annual salary increases were accelerated to $55,000 by 2024. From July 1, 2020 to December 31, 2020, the minimum exempt salary requirement will match the federal exemption salary.

There were a number of other clarifications, such as:

• What qualifies as compensable “time worked;”
• Employers disallowing tips do not violate rules against taking worker tips;
• How and when employers can divide up 10-minute rest periods; and
• Newly detailing what jobs qualify for the high-tech computer exemption.

Several provisions were also clarified to align with the federal Fair Labor Standards Act, such as the definitions of “employee” and “employer.” The changes are more specifically detailed in a lengthy Findings Statement. Employers should begin reviewing the changes immediately to prepare for their implementation in the next month.

Action Items