The Division's Statement of Basis, Purpose, Authority, and Findings for COMPS Order #38 offers more detail on the nature, basis for, and findings underlying the changes made to the COMPS Order. It adds an exemption for the highest-ranked and highest paid employee of a non-profit, as long as that person is paid within the minimum salary threshold discussed below. Background on COMPs Order #36 . Colorado Division of Labor Standards and Statistics| 303-318-8441 | Contact Us, Unemployment Rate - December 2022 Moreover, employers with any employees with limited English language ability are required to either post a Spanish-language version of COMPS Order 36 and Poster or contact the Division to request that the Division provide a copy of COMPS Order 36 and Poster in another language. Effective January 1, 2020, under the minimum wage requirements of Article XVIII, Section 15, of the Colorado Constitution, all employees (with the exceptions detailed in Rule 3.3), whether employed on an hourly, piecework, commission, time, task, or other basis, shall be paid not less than $12.00 per hour, less any applicable lawful credits or exceptions noted, for all hours worked, if the employee is covered by either: (A) Rule 2 (Coverage and Exemptions) of the COMPS Order; or, (B) the minimum wage provisions of the federal Fair Labor Standards Act (29 U.S.C. If the work site or other conditions make a physical posting impractical (including private residences employing only one worker, and certain entirely outdoor work sites lacking an indoor area), the employer shall provide a copy of the COMPS Order or poster to each employee within his or her first month of employment, and shall make it available to employees upon request. XpertHR is part of the LexisNexis Risk Solutions Group portfolio of brands. Otherwise, the regular rate of pay must be calculated based on the assumption of 40 hours worked in the week, and overtime must be paid at 1.5 times the regular rate. No profits to the employer may be included in the reasonable cost or fair market value of such meals furnished. The other major change in the COMPS Order is the introduction of a salary threshold under Colorado law for overtime exemptions. The workday is set by the employer and may accommodate flexible shift scheduling. Telecommunication 47 CFR Section 1.2204. Agricultural jobs that are exempt from the federal minimum wage are also exempt from the Colorado minimum wage. An employer shall retain records reflecting the information contained in an employees itemized earnings statement as described in this rule for at least 3 years after the wages or compensation were due, and for the duration of any pending wage claim pertaining to the employee. COMPS Order #38, effective January 1, 2022 remains in effect for 2023 The 2023 Publication And Yearly Calculation of Adjusted Labor Compensation (2023 PAY CALC) Order, which publishes values that adjust periodically under the COMPS Order, is also effective as of January 1, 2023. For federal workplace posters, contact the U.S. Department of Labor. The Executive Order also permits the notarization performed by aFor example, every county in Colorado . Colorado has followed the sweeping changes to its minimum wage, overtime, and other wage and hour rules implemented under Colorado Overtime and Minimum Pay Standards (COMPS) Order #36 with more changes, including a revamped transportation worker exemption. Additionally, COMPS Order 36 allows employers to take a credit towards minimum wage in several narrowly defined circumstances, including through a lodging credit, meal credit, or tip credit. The employee must regularly exercise independent judgment and discretion in matters of significance, with a primary duty that is non-manual in nature and directly related to management policies or general business operations. 8-4-114); or. Unlike with meal periods, employers need not permit employees to leave the premises for their rest periods. Check your email to confirm your account in order to place an offer. clocking or checking in or out, or waiting for any of the preceding shall be considered time worked that must be compensated. To continue reading please log in to XpertHR. 1.5 Employee, as defined by C.R.S. 2.4.2 Commission Sales. On March 16, 2020, Colorado Overtime & Minimum Pay Standards Order (COMPS Order) goes into effect defining the wage and hour rights of every employee and every private employer operating in the state, regardless of industry. 8.2 Complaints. The Statement of Basis, Purpose, Authority, and Findings accompanying the spring 2020 modifications explains the modifications considered and adopted at that time. (3) the design, documentation, testing, creation, or modification of computer programs related to machine operating systems. View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. The Director or a designated agent shall investigate and take all proceedings necessary to enforce the payment of the minimum wage and other provisions of the COMPS Order, pursuant to these rules and C.R.S. 16 0 obj Rule 7. Additionally, COMPs Order #36 set Colorado's minimum wage at $12 per hour. Although employers must understand and adapt to all aspects of the new legal framework brought about by the Colorado Department of Labor and Employment's new Colorado Overtime and Minimum Pay Standards Order #36 (COMPS Order), you should ensure you pay attention to the COMPS Order's significant new posting, distribution, and translation A meal credit, equal to the reasonable cost or fair market value of meals provided to the employee, may be used as part of the minimum hourly wage. endobj 1.10 Tipped employee means any employee engaged in an occupation in which s/he customarily and regularly receives more than $30 per month in tips. Effective January 1, 2021, the Colorado minimum wage will increase to $12.32 per hour for nonexempt employees. 2.2 Exemption from all except Rules 1, 2, and 8. Thus, for the first time on March 16, 2020, a vast swath of private sector employers will be subject to Colorados overtime, meal and rest break, travel time, and exemption rules that previously were limited to four discrete industries. The employee must spend a minimum of 80% of the workweek in activities directly related to his or her own outside sales. For the purpose of the COMPS Order, relevant factors in determining whether a person is an employee include the degree of control the employer may or does exercise over the person and the degree to which the person performs work that is the primary work of the employer; except that an individual primarily free from control and direction in the performance of the service, both under his or her contract for the performance of service and in fact, and who is customarily engaged in an independent trade, occupation, profession, or business related to the service performed is not an employee.1. 6.1 Tips or Gratuities. 2.5.1 For exemptions requiring a salary, the Salary Requirement rules of the federal Fair Labor Standards Act in 29 C.F.R. <> stream "Time Worked" Includes Any Task Taking Over One Minute. Log in. Higher education is exemptfrom these state mandated furloughs. 1.9 Time worked means time during which an employee is performing labor or services for the benefit of an employer, including all time s/he is suffered or permitted to work, whether or not required to do so. Tipped employees are those engaged in an occupation in which they customarily and regularly receive more than $30.00 per month in tips. According to the Department, the COMPS Order is the source of key wage rights and responsibilities, including eligibility for minimum wage; overtime pay for work over 40 hours a week or 12 hours a day; meal and rest breaks; rules on wage deductions; and rules on what work time must be paid. On July 1, 2020, the annualized salary for exempt employees will be set at $35,568 (equal to the federal exemption salary under the FLSA). Employer Record-Keeping and Posting Requirements. (F) Field staff of seasonal camps or seasonal outdoor education programs who primarily provide supervision or education of minors, or education of adults; are required to reside on-premises; are provided adequate lodging and all meals free of charge and without deduction from wages; and as of January 1, 2021, are paid the amount required by subpart (1) below (with no minimum pay required before January 1, 2021). References to the Colorado Minimum Wage Order shall be deemed to reference the COMPS Order, as the successor to the Colorado Minimum Wage Order. 4.1.2 Whichever of the three calculations in Rule 4.1.1 results in the greater payment of wages shall apply in any particular situation. In addition to state wage requirements, federal or local laws or regulations may apply minimum, overtime, or other wage requirements to some or all Colorado employers and employees. Effective March 16, 2020, employers must display a COMPS Poster (Poster) in a place where employees may easily read it during the workday, or if a physical posting is impractical, the employer must provide a copy of COMPS Order 36 or Poster to each employee. This field is for validation purposes and should be left unchanged. Register today to find other auction properties in Colorado. As under federal law, deductions may be made from the above salary requirements only under limited circumstances. 8-4-101(6), has the same meaning as in the federal Fair Labor Standards Act at 29 U.S.C. Most provisions become effective March 16, 2020, with the exception of the increased salary thresholds, which begin on July 1, 2020. These exemption definitions are the same as in prior Minimum Wage Orders, but now apply across the private sector, not just to the four previously covered industries. 8-4-101(5), means any person, including a migratory laborer, performing labor or services for the benefit of an employer. (B) receives at least 5 minutes of rest in every 4 hours worked. COMPS Order 36 has proven to be an overhaul of existing Colorado law, reaching many employers previously exempt from prior wage orders. Nothing in Rule 4 modifies the provisions on work hours for minors contained in C.R.S. This article summarizes the key changes. Such an agreement does not change an employees right to pay for rest periods under Rule 5.2.4. This exemption covers a full-time employee actively engaged in management of the employer who either: (A) owns at least a bona fide 20% equity interest in the employer; or. It is not necessary that the employee leave the premises for a rest period. 8-4-103(1)(a)), and authorizes civil actions to recover any amount of wages or compensation (C.R.S. The findings of fact made by the director acting within prescribed powers, in the absence of fraud, shall be conclusive.); 8-12-115 (The director shall enforce this article and shall promulgate rules and regulations more specifically defining the occupations and types of equipment permitted or prohibited by this article.); and. See Appendix A for citations. Any person may register with the Division a written complaint that alleges a violation of the COMPS Order within 2 years of the alleged violation(s), except that actions brought for a willful violation shall be commenced within 3 years. Copyright 2023 LexisNexis Risk Solutions Group. Changes to COMPS Order #36 and Leniency by the Colorado Division of Labor. National: 3.5%, Colorado Job Growth (SA) Meal Periods Employees shall be entitled to an uninterrupted and duty-free meal period of at least a 30-minute duration when the shift exceeds five consecutive hours of work. However . As noted in the previous post, COMPS order #36 is radical overhaul of Colorado's prior wage orders. The new minimum salary thresholds for exemption from overtime began on July 1, 2020. The COMPS Poster reflects major provisions of the COMPS Order including the 2020 minimum wage rate and tip credit, overtime pay . 8.4 Violations. 8-6-102 Construction provision (Whenever this article or any part thereof is interpreted by any court, it shall be liberally construed by such court.), applicable to rules on wages which are inadequate to supply the necessary cost of living ( 8-6-104), on conditions of labor detrimental to [worker] health or morals ( 8-6-104), on conditions of labor and hours of employment not detrimental to health or morals for workers ( 8-6-106), on what are unreasonably long hours ( 8-6-106), on what requirements are necessary to carry out the provisions of this article ( 8-6-108.5), and on minimum and overtime wages ( 8-6-109, -111, -116, -117): The provisions of the COMPS Order shall be liberally construed, with exceptions and exemptions accordingly narrowly construed. 3.1 Statewide Minimum Wage. (C) Student residence workers working in premises where they reside for sororities, fraternities, college clubs, or dormitories. (2) the design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications, or. 19-1267, effective January 1, 2020. The new minimum salary thresholds will be phased in over 4 1/2 years. (2) at least 5 minutes of rest in every 4 hours worked. Emancipated minor means any individual less than eighteen years of age who meets the definition provided by C.R.S. 1.8.2 Regular rate for employees paid a weekly salary or other non-hourly basis. 18-4-401) if an employer or agent: (A) willfully refuses to pay wages or compensation, or falsely denies the amount of a wage claim, or the validity thereof, or that the same is due, with intent to secure for himself, herself, or another person any discount upon such indebtedness or any underpayment of such indebtedness or with intent to annoy, harass, oppress, hinder, coerce, delay, or defraud the person to whom such indebtedness is due (C.R.S. 4.1.1 Employees shall be paid time and one-half of the regular rate of pay for any work in excess of any of the following, except as provided below: (C) 12 consecutive hours without regard to the start and end time of the workday. 2.2.8 Bona fide volunteers and work-study students. L1gUskihs0Y)V"WD\ u[|L9,iaa"2ih:` N\,#MJ"'a: Qe]V7STVA'"SJf0i}V[, .B&tyVwEzE~@Os7]I l*uKQfn ,YNh LPm_5!wt (m7,._^J{E2[X|5~RDm!o-lsIl4-Ftey0fW,4"""""2Ma2romE`ih6R}V`RnRWW1d&V ?GF.e{H([/N/peS,|}F|D. We will be carefully monitoring the states interpretation and enforcement of these new legal requirements leading up to the effective date of COMPS Order 36 on March 16, 2020 and thereafter. Newly covered employers will now have to abide by the Colorado overtime rules requiring employers to pay 1 times the employees regular rate of pay for work beyond 40 hours per week, 12 hours per day, or 12 consecutive hours of work, whichever results in the higher payment of wages. 1.4 Division means the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment. Finally, COMPS Order 36 exempts certain categories of employees from its overtime rule. The Division of Labor Standards and Statistics (Division) has taken the position that a full additional 10 minutes of pay is required even if the employee takes a shortened rest period. Acknowledgement of Receipt of Colorado COMPS Order #38 Poster Discussion of Wages Lactation Accommodation Meal and Rest Breaks Overtime Safety and Security Cell Phone Use/Texting While Driving Smoke-Free Workplace Was this article helpful? Employees shall be entitled to an uninterrupted and duty-free meal period of at least a 30-minute duration when the shift exceeds 5 consecutive hours. To the extent practical, rest periods should fall in the middle of each four-hour work period. Similarly, the minimum salary threshold for exemptions requiring a salary (such as for administrative, executive, and professional employees) will increase to $778.85 per week ($40,500.20 per year). Referred to as Colorado Overtime and Minimum Pay Standards (COMPS), these rules make significant and far-reaching changes to most parts of Colorado's compensation laws, including overtime pay, rest periods, and travel compensation. Rule 1.8 of COMPS Order 36 sets forth which items are included in the calculation of an employees regular rate of pay, as well as how to calculate the regular rate for those employees who are paid a weekly salary or on some other non-hourly basis. 2.5 Salary Thresholds for Certain Exemptions. <> If an employee is covered by multiple minimum or overtime wage requirements, the requirement providing a higher wage, or otherwise setting a higher standard, shall apply. 7.4.1 Posting. uestions arising with respect to the administration and interpretation of the COMPS Order. Nor may employers provide time off, or comp time, in lieu of paying time and a half for overtime hours. COMPS Order #37 In November 2020, the CDLE published COMPS Order #37, which goes into effect on January 1, 2021. The proposed COMPS Order clarifies that, "to the extent practical," rest periods shall be provided in the middle of each four-hour work period. 2 The Rule 1.6 definition of employer parallels the statutory amendment to the employer definition enacted by Colorado H.B. According to the CDLE, the COMPS Order is the source of key wage rights and responsibilities, including eligibility for minimum wage; overtime pay for work over 40 hours a week or 12 hours a day; meal and rest breaks; rules on wage deductions; and rules on what work time must be paid. Detailed information regarding the requirements under COMPS Order 36 can be found here. Please reach out to us at firstcall@corestaurant.org 80/20 Rule Resources Side Work Policy Acknowledgement Page In response [] 8-4-105, are also permitted. 8-4-101(14) definition that the unpaid wages recoverable in a state-law claim include [a]ll amounts for labor or service performed by employees, as long as such amounts are earned, vested, and determinable, at which time such amount shall be payable to the employee pursuant to this article.. The Colorado Overtime & Minimum Pay Standards (COMPS Order) #36 has been adopted as a key source of wage rights and responsibilities that, unlike prior wage orders, now covers all private employers in all industries. The language closely tracks the applicable FLSA regulation and provides that Colorado employers may use the fluctuating workweek method only where the parties have a clear mutual understanding that this method will be used. All sources cited or incorporated by reference are available for public inspection at the Colorado Department of Labor and Employment, Division of Labor Standards & Statistics, 633 17th Street, Suite 600, Denver CO 80202. 2.4 Exemptions from Overtime Requirements of the COMPS Order. Portions of the COMPS Order have been amended annually, to adjust the minimum wage for inflation as the Colorado Constitution requires, and to adjust similar wage figures. January 1, 2021 January 1, 2022 January 1, 2023 January 1, 2024 January 1, 2025, Weekly Overtime-Exempt Salary (& Rounded Annual Equivalent) $684.00 per week ($35,568 per year), The 2024 salary adjusted by the same CPI as the Colorado Minimum Wage, For any employer that is not subject to the $684 per week salary under this Rule 2.5.1 for all or part of 2020, the required salary is the equivalent of the Colorado $12.00 minimum wage, less any applicable lawful credits, for all hours worked in a workweek.5. The minimum wage may be reduced by 15% for (a) non-emancipated minors and (b) persons certified by the Director to be less efficient in performance of their job duties due to a physical disability. As such, for employees paid near the minimum salary level who work a high number of hours, it may be necessary to pay additional compensation in workweeks where the employee works a great number of hours. Alternatively, an employee may elect to pursue a complaint through the Divisions administrative procedure as described in the Colorado Wage Act, C.R.S. 4.2 Effect of Daily Overtime on Workday and Workweek. COMPS Order 36 specifically sets forth the circumstances under which Colorado employers may use the fluctuating workweek method of calculating overtime, under which the regular rate of pay is calculated based on all hours worked in the week and overtime is paid at 0.5 times the regular rate. Colorado Enacts New Wage Protection Rules The Colorado Department of Labor and Employment recently published final rules on overtime and minimum pay and other wage and hour protections for. The regular rate includes all compensation paid to an employee, including set hourly rates, shift differentials, minimum wage tip credits, non- discretionary bonuses, production bonuses, and commissions used for calculating hourly overtime rates for non-exempt employees. 1.3 Director means the Director of the Division of Labor Standards and Statistics. Second, Colorado state law provides more robust coverage than current federal overtime law. a notary may perform a copy certification of records obtained from which office. First, it is sufficient for an employer to authorize and permit two five-minute rest periods in lieu of a 10-minute rest period, so long as the employee and employer agree, voluntarily and without coercion, and so long as five minutes is sufficient time to go back and forth to a bathroom or other place where a bona fide break would be taken. If any part (including any section, sentence, clause, phrase, word, or number) is held invalid, (A) the remainder of the COMPS Order remains valid, and (B) if the provision is held not wholly invalid, but merely in need of narrowing, the provision should be retained in narrowed form. The COMPS Order rejects those decisions and imposes a much more onerous requirement that employers generally pay for any time worked over one minute. Prior Wage Orders covered only four industries: Retail/Service, Food/Beverage, Health/Medical, and Commercial Support Service. 655.210, 655.1304; 29 C.F.R. The professional employee must be employed in the field in which s/he was trained. XVIII, 15 (2020); Title 8, Articles 1, 4, and 6 of the Colorado Revised Statutes (2020); 7 CCR 1103-7 (2020); and 7 CCR 1103-8 (2020) are hereby incorporated by reference into this rule. Such meal periods, to the extent practical, shall be at least one hour after the start, and one hour before the end, of the shift. 8-1-101 (General order means an order of the director applying generally throughout the state to all persons, employments, or places of employment under the jurisdiction of the division); 8-1-103 ([P]owers, duties, and functions of the director , includ[e] promulgation of rules, rates, regulations, and standards, and the rendering of findings, orders, and adjudications); 8-1-107 ([T]he director has the duty and the power to [a]dopt reasonable and proper rules and regulations relative to the exercise of his powers and proper rules and regulations to govern the proceedings of the division and to regulate the manner of investigations and hearings.). 24-4-101, et seq. endobj In response this blog noted that the CDLE has just issued some additional information. 2.3.2 The Rule 2.3.1 exemption does not apply if an employer draws at least 50% of its annual dollar volume of business from sales to the consuming public (rather than for resale) of any services, commodities, articles, goods, wares, or merchandise.3, 3 Prior Orders for decades have covered any such employer, in any industry. CFR Title 47. The following are exempt from the COMPS Order except Rules 1 (Authority and . 201 et seq.). Employees of the ski industry performing duties directly related to ski area operations for downhill skiing or snowboarding, and those employees engaged in. This exemption covers an employee working primarily away from the employers place of business or enterprise for the purpose of making sales or obtaining orders or contracts for any commodities, articles, goods, real estate, wares, merchandise, or services. The COMPS Order regulates wages, hours, working conditions, and procedures for all employers and employees for work performed within Colorado, with the exceptions and exemptions contained within Rule 2. 203(f) of the federal Fair Labor Standards Act: farming in all its branches and among other things includes the cultivation and tillage of the soil, dairying, the production, cultivation, growing, and harvesting of any agricultural or horticultural commodities (including agricultural commodities ), the raising of livestock, bees, fur-bearing animals, or poultry, and any practices (including any forestry or lumbering operations) performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, including preparation for market, delivery to storage or to market or to carriers for transportation to market. Jobs in agriculture also includes temporary employees employed directly by the Western Stock Show Association for the annual National Western Stock Show, who are exempt from all provisions of the COMPS Order. The Colorado Overtime and Minimum Pay Standards Order ("COMPS Order") is the source of key wage rights and responsibilities: eligibility for the Colorado minimum wage; overtime pay for work over 40 hours a week or 12 a day; meal and rest breaks; and rules on wage deductions, on what work time must be paid, and on posting the COMPS Order to employees. Colorado wage Act, C.R.S performed by aFor example, every county in Colorado rest! Salary or other non-hourly basis for Exemption from overtime requirements of the COMPS Order reasonable cost or Fair value... ; s prior wage orders in which they customarily and regularly receive than. In 29 C.F.R for a rest period major provisions of the COMPS Poster reflects major provisions of the federal Labor! 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