Under the Colorado Overtime and Minimum Pay Standards Order (COMPS), employers in certain industries must pay each employee overtime in the amount of 11/2 times the employee's regular rate for hours worked in excess of 12 in a day, 12 consecutive hours, or 40 in a workweek, whichever results in the higher payment of wages. (CO Admin. Code Tit. 7 Sec. 1103-1).
Colorado provides an exemption from the overtime requirements for exempt executive/supervisory, administrative, and professional employees. In order to be exempt, an employee must meet the salary and duties requirements. Effective January 1, 2021, the salary threshold for overtime exemption is $40,500, then will increase to $45,000 in 2022, to $50,000 in 2023, and to $55,000 in 2024.
Colorado defines an exempt executive or supervisory employee as one who:
• Is a salaried employee earning more than the minimum wage for all hours worked in a workweek;
• Supervises the work of at least two full-time employees;
• Has the authority to hire and fire, or to effectively recommend the hiring of a prospective employee or firing of an employee; and
• Spends a minimum of 50 percent of the workweek in duties directly related to supervision.
Colorado defines an exempt administrative employee as one who:
• Is a salaried employee;
• Directly serves the executive;
• Regularly performs duties important to the decision-making process of the executive;
• Regularly exercises independent judgment and discretion in matters of significance;and
• Has the primary duty of work that is nonmanual in nature and directly related to management policies or general business operations.