Littler Lightbulb: Whats New in Colorado? Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. Signature* Clear Print Employee Name:* Date* -Month -DayYear Date Preview PDF Submit Should be Empty: On January 22, 2020, the Colorado Division of Labor and Employment finalized its new order now called COMPS order #36 effective March 16, 2020. It renames the regularly-issued Minimum Wage Order to reflect that this order covers not only minimum wages, but also overtime and other related wage and hour standards. 4.1.4 Performance of work in two or more positions, at different pay rates, for the same employer, shall be computed at the overtime rate based on the regular rate of pay for the position in which the overtime occurs, or at a weighted average of the rates for each position, as provided in the federal Fair Labor Standards Act. 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. Compliance would include reviewing your compensation structure, pay grades, performance, hiring practices, and market benchmarking to start. This exemption covers an employee paid a salary, or hourly compensation, in accord with Rule 2.5, who: (A) is a skilled worker employed as a computer systems analyst, computer programmer, software engineer, or other similarly highly technical computer employee; (B) who has knowledge of an advanced type, customarily acquired by a prolonged course of specialized formal or informal study; and, (C) spends a minimum of 50% of the workweek in any combination of the following duties . Please note that the form is currently not optimised for mobile devices. Background on COMPs Order #36 . 8.6 Division and Dual Jurisdiction. For employers covered by prior Minimum Wage Orders, COMPS Order 36 provides some clarification, but does not materially change, their obligations with respect to pay for travel time, as the prior orders defined travel time as all time spent at the control or direction of an employer, excluding normal home to work travel. This definition is significantly more expansive than the definition of compensable travel time under the FLSA (as amended by the Portal to Portal Act), however, imposing heightened obligations on employers not in one of the four previously covered industries. 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. COMPs Order #36 mandated that almost every employer in Colorado provide meal and rest breaks to their employees. The following employees are exempted under Rule 2.2, provided that their position based on actual job duties, as opposed to their job description meets the criteria set forth in the Order: As under prior minimum wage orders, COMPS Order 36 does not recognize the creative professional or highly compensated exemptions available under federal law. Violators may be subject to penalties under C.R.S. 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. The page you are about to view is currently not optimized for mobile devices. Therefore, a failure by an employer to authorize and permit a 10-minute compensated rest period is a failure to pay 10 minutes of wages at the employees agreed-upon or legally required (whichever is higher) rate of pay. 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 ($40,500.20 per year). 7.4.2 Distribution. uestions arising with respect to the administration and interpretation of the COMPS Order. The professional employee must be employed in the field in which s/he was trained. Although employers must understand and adapt to all aspects of the new legal framework brought about by the Colorado Department of Labor and Employment's new Colorado Overtime and Minimum Pay Standards Order #36 (COMPS Order), you should ensure you pay attention to the COMPS Order's significant new posting, distribution, and translation We will be carefully monitoring the states interpretation and enforcement of these new legal requirements leading up to the effective date of COMPS Order 36 on March 16, 2020 and thereafter. 5 0 obj 2.2.5 Owners or proprietors. 201 et seq.). For the purpose of the COMPS Order, relevant factors in determining whether a person is an employee include the degree of control the employer may or does exercise over the person and the degree to which the person performs work that is the primary work of the employer; except that an individual primarily free from control and direction in the performance of the service, both under his or her contract for the performance of service and in fact, and who is customarily engaged in an independent trade, occupation, profession, or business related to the service performed is not an employee.1. 1.9.2 Travel time means time spent on travel for the benefit of an employer, excluding normal home to work travel, and shall be considered time worked. Based on informal guidance form the Division, it may also be compliant to simply append the COMPS Order or Poster onto accessible electronic handbooks. "W! WB 'y$A,Gbeih2)5K0)QUYX6#>vV^+2W Because a rest period requires 10 minutes of pay without work being performed, work during a rest period is additional work for which additional pay is not provided. Higher education is exemptfrom these state mandated furloughs. COMPS Order 36 also clarifies the meal credit requirement. Colorado Dept of Labor and Employment CDLE published three final rules: Colorado Overtime and Minimum Pay Standards Order #38 COMPS 38, 2022 Publication and Yearly Calculation of Adjusted Labor . 2.4.2 Commission Sales. 4 0 obj For example, if an employee is called back to work seven minutes into his or her rest period, the employer owes 10 extra minutes of pay, not just seven. However, the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment ("the Division") has recently implemented temporary emergency modifications to the COMPS . He has handled matters both in the state and federal courts nationwide as well as via related administrative agencies. <> stream Following is the appropriate contact information to communicate with us about the COMPS Order: Employer or employee questions on substance of COMPS rules: , 633 17th Street, Denver, CO 80202.The hearing was transcribed, and a draft of the, , in addition to all the comments received, and the. The Rule 2.5.1 salaries do not apply to the following professionals who are exempt from the requirement of a salary under federal wage law. clocking or checking in or out, or waiting for any of the preceding shall be considered time worked that must be compensated. $13.65 / Hour Employees identified under Rule 2.2 are exempt from COMPS Order 36, except for Rule 1 (Authority and Definitions), Rule 2 (Coverage and Exemptions), and Rule 8 (Administration and Interpretation). As noted in the previous post, COMPS order #36 is radical overhaul of Colorado's prior wage orders. COLORADO DEPARTMENT OF LABOR AND EMPLOYMENT, Division of Labor Standards and Statistics, Colorado Overtime and Minimum Pay Standards Order (COMPS Order) #367 CCR 1103-1 (2020). Don't have a login? (4) paid for whatever hours the employee works in a workweek. Colorado: 3.3% 8-4-103(6). 1.9.3 Sleep time means time an employee may sleep, which is compensable as follows. 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. COMPS Order 36 applies to virtually all private employers in Colorado and overhauls wage and pay regulations, including overtime, meal and rest breaks, exemption tests, and numerous other areas. In addition, exempted from the 2020 threshold are non-profits with annual gross revenue under $50 million, as well as for-profit employers with an annual total gross revenue under $1 million. 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. The employee must spend a minimum of 80% of the workweek in activities directly related to his or her own outside sales. (2) at least 5 minutes of rest in every 4 hours worked. 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. This Order. 4.3 Overtime for Minors. Copies may be obtained from the Division of Labor Standards & Statistics at a reasonable charge. 2.2 Exemption from all except Rules 1, 2, and 8. 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. Employees of the ski industry performing duties directly related to ski area operations for downhill skiing or snowboarding, and those employees engaged in. 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.). Employers should note that salaried exempt employees must still be paid Colorado minimum wage for all hours worked. Paid Sick Leave 88 Section 9 - District of Columbia Addendum 93 . 2.3.3 Jobs in agriculture means jobs with work primarily within the same definition of agriculture as under 29 U.S.C. 1.13 Workweek means any consecutive set period of 168 hours (7 days) starting with the same calendar day and hour each week. The Colorado minimum wage is set forth in the state constitution, and for 2020 is $12.00 per hour, or $8.98 per hour for tipped employees. Where an uninterrupted or off-duty meal period is impractical, such as when an employee is single-staffed and required to monitor the phones during their meal period, the employee must be permitted to consume an on-duty meal while performing duties. Register today to continue reading this article. Nor may employers provide time off, or comp time, in lieu of paying time and a half for overtime hours. As under federal law, deductions may be made from the above salary requirements only under limited circumstances. Second, if the employees work is agricultural, qualified Medicaid-funded home care, or subject to a collective bargaining agreement, then rest periods can be five minutes in a four-hour period, so long as the employees rest periods average 10 minutes per four hours over the course of the workday. 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. 5.2.3 Required rest periods are time worked for the purposes of calculating minimum wage and overtime obligations. 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. 24-4-103. This applies to certain salespersons and mechanics, qualifying commission sales employees, certain employees in the ski industry, and qualifying medical transportation workers. Colorado Division of Labor Standards and Statistics| 303-318-8441 | Contact Us, Unemployment Rate - December 2022 Where any Division rule references another rule, the reference shall be deemed to include all subparts of the referenced rule. The Division accepts state law complaints by employees who claim entitlement to a state, federal, or local minimum or overtime wages under the C.R.S. <> 1.9.1 Requiring or permitting employees to be on the employers premises, on duty, or at a prescribed workplace (but not merely permitting an employee completely relieved from duty to arrive or remain on-premises) including but not limited to, if such tasks take over one minute, putting on or removing required work clothes or gear (but not a uniform worn outside work as well), receiving or sharing work-related information, security or safety screening, remaining at the place of employment awaiting a decision on job assignment or when to begin w Changes to COMPS Order #36 and Leniency by the Colorado Division of Labor. The public hearing on COMPS Order #36 was held on Monday, December 16, 2019 at 3:00 pmat theColorado Division of Labor Standards and Statistics, 12th Floor Conference Room, 633 17th Street, Denver, CO 80202.The hearing was transcribed, and a draft of thetranscript is publicly available, in addition to all the comments received, and the transcript of the Division's pre-rulemaking public meeting which took place on August 28, 2019. 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. 8-4-101, et seq. 2.4.4 Medical Transportation. And, effective January 1, 2021, COMPS Order36 establishes minimum salary thresholds higher than those under the FLSA that employees must earn in addition to meeting the applicable duties test to be exempt from overtime requirements. This field is for validation purposes and should be left unchanged. Background information and additional resources on the COMPS Order: In a rulemaking effort that began in summer 2019, the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment replaced theannually issuedMinimum Wage Orderwith Colorado Overtime and Minimum Pay Standards Order ("COMPS Order") #36. $10.63 / Hour for tipped employees, Colorado Department of Labor and Employment, 633 17th Street, Suite 201 There are narrow exceptions for qualifying doctors, teachers, lawyers, and employees in highly technical computer-related occupations. 8-4-114); or. While Rule 7.2 appears to require that this information be provided to each employee each pay period, informal guidance from the Division indicates that the Division intended to ensure that this information be available to employees and the Division itself only upon request during an investigation, not included on pay stubs. An itemized earnings statement of the information in Rule 7.1 shall be provided to each employee each pay period. Acknowledgement of Receipt of Colorado Overtime and Minimum Pay Standards Order (COMPS Order #38) Poster Handbook Statement: Colorado [insert COMPS Order Poster] I acknowledge that Access to the Employee Handbooks product requires a subscription Learn More Request a Demo Already an XpertHR user? 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. No profits to the employer may be included in the reasonable cost or fair market value of such meals furnished. 2.3.1 Workers in jobs in agriculture are exempt from Rule 3 (Minimum Wage), Rule 4 (Overtime), and Rule 5.1 (Meal Periods) if they are not covered by, or are exempt from, the minimum wage provisions of the federal Fair Labor Standards Act (29 U.S.C. 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. Emancipated minor means any individual less than eighteen years of age who meets the definition provided by C.R.S. If adopted for 2022, the Wage Protection Rules would significantly expand the definition of "vacation pay" under Colorado law and affect how employers make certain . COMPS Order 36 has proven to be an overhaul of existing Colorado law, reaching many employers previously exempt from prior wage orders. 4.2 Effect of Daily Overtime on Workday and Workweek. Previous Wage Orders provided that employees must be paid time and one-half the regular rate of pay for overtime work (defined in Colorado as work in excess of 40 hour workweeks or 12 hours in a given day), unless the . Employees must be completely relieved of all duties and permitted to pursue personal activities, including by leaving the premises if desired. 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). This exemption covers those who need not be compensated under the federal Fair Labor Standards Act (29 U.S.C. 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. As previously discussed, Colorado officially adopted the Colorado Overtime and Minimum Pay Standards Order # 36 ("COMPS Order") on January 22, 2020, which went into effect on March 16, 2020. 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. COLORADO OVERTIME AND MINIMUM PAY STANDARDS ORDER (COMPS ORDER) ACKNOWLEDGEMENT OF RECEIPT I HAVE BEEN PROVIDED AND HEREBY ACKNOWLEDGE RECEIPT OF A COPY OF THE COLORADO OVERTIME AND MINIMUM PAY STANDARDS ORDER (COMPS ORDER #38) POSTER. 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. 5.1 Meal Periods. Phone: 303-318-8000, About UsStakeholdersWARN ListingsAccessibility StatementCareers at CDLEEqual OpportunityOpen RecordsPerformance Plans, Social Media Comment PolicySecurity StatementPrivacy PolicyLegal NoticesLinking Policy, Colorado Overtime & Minimum Pay Standards (COMPS) Order. (B) receives at least 5 minutes of rest in every 4 hours worked. On January 22, 2020, the Colorado Department of Labor and Employment issued new rules that will overhaul the state's wage-and-hour laws. 2. 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. Rule 8 Administration and Interpretation. 5.2.2 Rest periods, to the extent practical, shall be in the middle of each 4-hour work period. 2.5.1 For exemptions requiring a salary, the Salary Requirement rules of the federal Fair Labor Standards Act in 29 C.F.R. (B) Employees in highly technical computer-related occupations, as defined by Rule 2.2.10, must receive at least the lesser of (1) the applicable salary in Rule 2.5.1, or (2) hourly pay that is at least $27.63 in 2020, adjusted annually by CPI thereafter. Other jobs in agriculture are exempt from Rule 4 (Overtime) and Rule 5.1 (Meal Periods). It is not necessary that the employee leave the premises for a rest period. 655.210, 655.1304). Minimum Wage and Overtime Poster Notice of Paydays Employment Security Act FAMLI Program Notice FAMLI Break Room Poster The employee must spend a minimum of 50% of the workweek in duties directly related to supervision. Read the code on FindLaw View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. This exemption covers a salaried employee, paid at least the applicable salary in Rule 2.5, who supervises the work of at least two full-time employees and has the authority to hire and fire, or to effectively recommend such action. """"""W{@. 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 COMPS Order is issued under the authority of, and as enforcement of, Colorado Revised Statutes (C.R.S.) Title 8, Articles 1, 4, and 6 (2020), and is intended to be consistent with the requirements of the State Administrative Procedures Act, C.R.S. The COMPS Order is a comprehensive regulatory change to Colorado minimum wage, overtime, and working condition rules, and imposes significant new obligations and restrictions on employers. Pregnancy Accommodations 84 8-2. Alternatively, an employee may elect to pursue a complaint through the Divisions administrative procedure as described in the Colorado Wage Act, C.R.S. Colorado: COMPS Order Acknowledgment Form 264 Maine: Receipt of Non-Harassment Policy 265 Massachusetts: Receipt of Non-Harassment Policy 268 8-4-101(5), (6). 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