Overtime Laws in Colorado

Colorado’s overtime rules sit on top of the federal baseline and apply to most workers in the state. The Colorado Overtime & Minimum Pay Standards (COMPS) Order sets the framework, and the Division of Labor Standards & Statistics (DLSS) at CDLE publishes annual amounts and plain-English guidance. 

Overview of Colorado Overtime Laws

• Standard overtime rate: 1.5× an employee’s regular rate for hours over 40 in a workweek, 12 in a workday, or 12 consecutive hours—whichever yields more overtime. No averaging across weeks and no “comp time” in lieu of overtime.
• What counts in the “regular rate”: Most pay tied to work—shift differentials, nondiscretionary bonuses, commissions, and tip credits (but not the tips themselves)—is included. Paid time off and discretionary bonuses aren’t.
• Leave hours don’t create OT: Paid vacation/holiday/sick hours do not count toward the 40-hour threshold; only hours actually worked count.
• Daily overtime + consecutive-hours rule: Colorado triggers OT after 12 in a day or any 12 consecutive hours, even if the week totals ≤40.
• Agriculture specifics (ALRRA/COMPS): Weekly OT after 48 hours (or after 56 hours in up to 22 declared peak weeks for highly seasonal employers). After 12 hours in a day, a paid extra break is required; after 15 hours, an extra hour of pay at least at minimum wage. Certain family owners/relatives, decision-making livestock managers, and range workers have tailored rules. 
• Posters & written notices: Employers must give required COMPS notices and post the current wage order.

What’s New in Colorado Overtime Law

Eligibility for Overtime

Non-Exempt Employees

Generally eligible for overtime under COMPS.

Exempt Employees

Must meet duties tests and (for most) the salary threshold ($56,485 in 2026). Core categories include 

• executive/supervisor,
• administrative, 
• professional, 
• outside sales, 
• highly technical computer employees.

Industry-specific exceptions

Colorado recognizes targeted, partial overtime exemptions—for example, ski industry roles directly related to ski-area operations; hospital/nursing home “8 & 80” agreements; medical transportation 24-hour shifts (exempt from daily OT if weekly OT is paid); and certain Motor Carrier Act drivers. Read the fine print in Rule 2.4.

Colorado vs. Federal Overtime Rules

Colorado overtime rules adds daily and consecutive-hours triggers on top of the federal 40-hour rule. That means you can owe Colorado overtime even when the FLSA wouldn’t—e.g., a 13-hour single-day shift in a 38-hour week.

Exemptions in Colorado

• Executive/supervisor, administrative, professional (salary + duties). 
• Outside sales (80%+ of time on outside sales activity).
• Highly technical computer employees (specific duties; salary or qualifying hourly rate).
• Owners/proprietors (20% equity or specified nonprofit leader).
• Highly compensated employees (Colorado-specific HCE threshold; duties prong).
• Commissioned retail sales, certain auto/truck/farm implement dealers, ski industry, medical transportation 24-hour shifts (daily OT exemption only), hospital “8 & 80”, and MCA-covered drivers (conditions apply).

Employer Obligations and Employee Rights

• Track & pay correctly: Record all time worked, calculate regular rate properly (including nondiscretionary pay and tip credits), and pay overtime on time. 
• Post & notify: Provide COMPS poster and required written notices to employees.
• File a wage complaint: Workers can file with DLSS using the Labor Standards Complaint Form or through DLSS’s Demands/Complaints portal.
• Penalties for non-payment: DLSS can order wages plus penalties (double or triple the owed wages depending on willfulness), with adjustments based on when payment is made after notice. Updated 2026 guidance explains waiver/reduction scenarios.
• Anti-retaliation: It’s unlawful to retaliate or interfere with workers exercising wage/leave rights; DLSS INFO #5/#5A explain protections and examples.