Key wage and hour rights under Colorado's COMPS and PAY CALC Orders

Division of Labor Standards and Statistics
707 17th Street, Denver, CO 80202 | 303-318-8441
www.ColoradoLaborLaw.gov | www.LeyesLaboralesDeColorado.gov

Interpretive Notice & Formal Opinion ("INFO") # 1:
Key Wage and Hour Rights and Responsibilities in Colorado: the COMPS and PAY CALC Orders

Overview

• This INFO #1 summarizes, and explains how to apply, key wage and hour rights and responsibilities under Colorado law — which are detailed in several Colorado labor statutes and rules.
• Many key wage and hour rights and responsibilities are in the Colorado Overtime and Minimum Pay Standards Order ("COMPS Order"), including:
  • what is required to comply with minimum wage, overtime pay, and meal and rest break rights;
  • what charges to employees, or credits employers can claim to reduce wages, are and aren't legal;
  • what is and isn't "time worked" that must be paid;
  • when and how employers must use posters and written notices to tell employees their rights; and
  • who's covered by these rights and responsibilities, and who's exempt.
• Each year's minimum wages, and various exemption pay levels (e.g., to be an exempt manager), are in the Publication And Yearly Calculation of Adjusted Labor Compensation Order ("PAY CALC Order").
• Other wage and hour rights and responsibilities are in the Colorado Wage Act, covered in other INFOs: permissible and impermissible wage payment timing (INFO #3A) and methods (INFO #3B); departing employees' unused vacation pay (INFO #3E); and deductions from pay (INFO #16).
• This INFO #1, and the COMPS Poster that notifies employees of their rights, are updated annually with any wage and hour law changes, including the upcoming year's minimum wage.

Coverage and Exemptions (Rule 2)

• The COMPS Order covers all private sector work, except for exempt jobs and employers (see below).
• The COMPS Order covers "employers" and "employees," not others such as independent contractors. Whether an individual is an employee or independent contractor depends on the actual facts, not just what documents say (contract, 1099 tax form, etc.) — for more detail, see INFO #10.

Colorado Minimum Wage (Rule 3)

• All employees covered by the COMPS Order, even if they have non-hourly pay (salary, piece rate, commission, etc.) must receive the Colorado minimum wage: $15.16 per hour in 2026.
• Most minors (but not "emancipated" minors) can be paid 15% below the full Colorado minimum wage.
• Employers can claim some credits against wages owed (like for tips received), and some deductions (like for certain employee meals) — with important limits and conditions (see the "Deductions" section below).
• Past Colorado minimum wages, by year: 2007 $6.85; 2008 $7.02; 2009 $7.28; 2010 $7.24; 2011 $7.36; 2012 $7.64; 2013 $7.78; 2014 $8.00; 2015 $8.23; 2016 $8.31; 2017 $9.30; 2018 $10.20; 2019 $11.10; 2020 $12.00; 2021 $12.32; 2022 $12.56; 2023 $13.65; 2024 $14.42; 2025 $14.81.
• Reduced minimum wage for minors is subject to the limitations in the Colorado Youth Employment Standards (YES) Rules, 7 CCR 1103-20, effective February 1, 2026.
• Various areas in Colorado have a higher local minimum wage; all are posted at ColoradoLaborLaw.gov. For more detail on how and when local minimum wages apply, see INFO #19.

Overtime Pay (Rule 4)

• Employers must pay 1½ times an employee's regular rate of pay ("time and a half") for hours past (A) 40 per week, (B) 12 per day, or (C) any 12 consecutive hours — whichever results in higher pay.
• Employers can't add or average hours in multiple weeks to determine overtime — e.g., a 50-hour week includes 10 hours of overtime, even if the employee works only 30 hours the week before or after.
• Employers can't give time off instead of time-and-a-half overtime pay, sometimes called "comp time."
• Non-exempt employees can still be paid by salary (or other non-hourly pay), but overtime premium pay still must be added for overtime hours.
• A salary can cover all hours worked, with a regular rate divided by the actual number of hours worked, if the employer and employee have a clear mutual understanding that the salary: (1) compensates all hours worked; (2) is at least minimum wage for all hours worked; (3) is supplemented by at least ½ the regular rate for any overtime hours; and (4) is paid for whatever hours the employee works in a workweek.
• Otherwise, the salary is divided by 40 hours to determine the regular rate.
• The "regular rate" that rises 50% in overtime hours includes all wages or compensation an employee received or was entitled to (whichever is higher) in a week, divided by all hours worked.
• The regular rate includes any type of pay received or owed for work — not just the employee's base rate covering most or all of their hours, but also: any higher hourly rates (often called "shift differentials") for certain hours, like nights or holidays; minimum wage tip credits — but not the tips themselves; and any non-hourly pay — salary, commissions, piece rate, or production or non-discretionary bonus.
• The regular rate does not include: reimbursements that aren't "wages or compensation" — e.g., mileage or business expenses; payments not for "labor or service performed" (e.g., bona fide gifts, as opposed to bonuses) or (even if for labor or services) for paid time off (e.g., vacations, holidays, sick leave, jury duty); discretionary bonuses — e.g., annual bonuses not based on productivity or regular production; or employer investment contributions — typically covered by benefits law, not wage law.

Example 1: For 40-hour, 5-day weeks, an employee receives $1200 (i.e., $240 per day, $30 per hour) plus 6 days each of several kinds of paid days off (vacation, holidays, and sick leave) paid at $240 per day ($1200 per week divided by five days), except holiday days off are paid $320 ($40 per hour). One week had a Monday paid holiday, then the employee worked 44 hours in four 11-hour days. They are owed 4 hours of overtime; the count of overtime hours excludes the Monday paid time off. Their regular rate of pay was $30; the higher Monday holiday pay ($320 daily, $40 hourly) isn't included, because a regular rate is an average of only work time pay that counts toward the 40-hour non-overtime hours limit.

Example 2: An employee is paid $20 per hour, except $25 for work on nights outside regular shifts (8 p.m. - 6 a.m.). But the employee is paid no overtime premium for hours past 40 in a week. Whether or not the hours past 40 are shift differential hours, the employer owes overtime premium pay of 1½ times the employee's "regular rate" for the week — which is their average rate for all their time worked that week. That means their overtime rate varies by how many higher- and lower-rate hours they work each week. Example calculation: 36 hours at $20 base rate plus 24 hours at $25 shift differential = $1320 total non-OT pay; divided by 60 total hours worked = $22/hr regular rate; overtime rate is 1.5 x $22 = $33/hr; overtime owed per hour is $33 - $22 = $11/hr, so for 20 overtime hours, $220 is owed. A second example: 10 hours at $20 plus 40 hours at $25 = $1200 total non-OT pay over 50 hours worked = $24/hr regular rate; overtime rate $36/hr; overtime owed per hour $12, so for 10 overtime hours, $120 is owed.

(Alternative formula: Total Weekly Pay Without Overtime × Overtime Hours Worked (total hours minus 40) × ½ ÷ Total Hours Worked.)

Meal Periods (Rule 5.1; see INFO #4 for more detail on meal and rest periods)

• For shifts over 5 hours, employees are entitled to uninterrupted, duty-free 30-minute meal periods.
• To the extent practical, meal periods must be at least 1 hour after a shift starts and 1 hour before it ends.
• Meal periods can be unpaid if employees are completely relieved of all duty and free for personal activity.
• If the work makes an uninterrupted meal period impractical, the employee must be allowed to eat a meal while on-duty and working, and that time must be paid.

Rest Periods (Rule 5.2; see INFO #4 for more detail on meal and rest periods)

• For each 4 hours of work, employers must authorize and permit compensated 10-minute rest periods, on this schedule: 2 or fewer hours worked = 0 rest periods; over 2 up to 6 hours = 1; over 6 up to 10 = 2; over 10 up to 14 = 3; over 14 up to 18 = 4; over 18 up to 22 = 5; over 22 = 6.
• Rest periods must not include work, but leaving the premises isn't necessary.
• To the extent practical, rest periods should be in the middle of each 4-hour work period.
• If any required rest period time isn't authorized and permitted, extra pay is owed for the extra time worked.
• Exceptions to the requirement that rest periods must be 10 minutes for every four hours worked: if employee and employer agree, voluntarily and without coercion, to two 5-minute breaks, if 5 minutes is enough to go back and forth to a bathroom or other place where a bona fide break would be taken; or if work is Medicaid-funded home care or under a collective bargaining agreement, then rest periods can be 5 minutes in a 4-hour period, if over the day they average 10 minutes per 4 hours.

Time Worked (Rule 1.9; see INFO #20 for more detail on time worked)

• "Time worked" that must be paid is all time performing labor or services for employer benefit, including: time employees are suffered or permitted to work, whether or not required; and time employers permit or require employees to be on-premises, on duty, or at a prescribed workplace, but not just letting off-duty employees arrive or remain on-site.
• Examples: cleanup or setup (examples: putting on or removing clothes, or gear, worn only at work); checking in/out (timeclock, security/safety screening, etc.), or waiting to do so; receiving or sharing work information, or waiting for tasks – but not just off-duty time on premises; travel for employer benefit – but not normal commuting (details in Rule 1.9.2); sleep time required to be on-site – but not lengthy, uninterrupted periods (details in Rule 1.9.3).

Exemptions from COMPS (Rules 2.2-2.5)

• Exempt duties are required (detailed in the rules, and listed below) for an employee to be exempt. Some exemptions also require a minimum pay level, but being salaried, alone, is not enough for exemption.
• Executives/Supervisors, Administrative Decision-Makers, and Professionals ("EAP"), who have both: (A) duties that define those types of jobs (see Rules 2.2.1-2.2.3, and INFO #1A), and (B) a salary (not, for example, an hourly wage or day rate) of at least the following amount: $45,000 (2022); $50,000 (2023); $55,000 (2024); $56,485 (2025); $57,784 (2026); inflation-adjusted in future years. Except doctors, lawyers, and teachers can be exempt based on just duties, without a minimum salary, as in federal law. Up to 10% of the EAP salary amount required may be paid through nondiscretionary bonuses, incentives, and commissions paid annually or more frequently (this 10% rule does not apply to the highly compensated employee's weekly salary).
• For these exemptions, pay qualifies as salary only if it's a pre-set sum for a week to a month that isn't reduced for variation in work quality, quantity, or hours — except deductions are allowed for: the initial and terminal work weeks of employment, for which the salary may be prorated based on hours or days actually worked during those weeks; absence for one or more days for personal reasons, or sickness or disability under a bona fide plan, policy, or practice of compensating lost salary; good-faith penalties under major safety rules, or unpaid disciplinary suspensions of one or more days under workplace conduct rules; leave under family medical leave law; or payments of jury or witness fees, or military pay.
• Because employers have options to comply with COMPS — (a) pay exempt salaries; (b) pay hourly rates with overtime; or (c) arrange shifts to minimize overtime — employers are not required to make use of this or any other exemption.
• Outside salespersons if at least 80% of their work time is related to their sales (R. 2.2.4).
• 20% owners (or a nonprofit's highest-paid, highest-ranked employee) actively managing the entity (R. 2.2.5).
• Government-licensed taxi drivers (R. 2.2.6).
• Some resident workers, e.g., babysitters, property managers, camp/outdoor education field staff (R. 2.2.7).
• Bona fide volunteers for non-profits and work-study students receiving school credit (R. 2.2.8).
• Elected officials and their staff (R. 2.2.9).
• Highly technical computer-related employees (R. 2.2.10) paid at least $34.85 per hour in 2026.
• Other highly compensated employees (R. 2.2.11) who: (1) do office or non-manual work as their primary duty (e.g., not a non-managerial electrician); (2) also customarily and regularly perform one or more exempt EAP duties (above); and (3) receive at least the above EAP salary weekly, and 2¼ times that salary annually, $130,014 in 2026.

Exemptions from Overtime Requirements (2.4.1-2.4.7, 2.4.10)

• Specific kinds of sales employees that are overtime-exempt: salespersons or mechanics at certain vehicle or farm equipment dealers (R. 2.4.1); and commission salespeople of a retail/service employer drawing 75% of its revenue from sales, if paid at least (A) ½ from commissions and (B) 1½ of minimum wage (R. 2.4.2).
• Ski employees with duties directly related to downhill ski/snowboarding or on-mountain food/beverage service, but not lodging: exempt from 40-hour overtime (federal law may give 56-hour overtime) (R. 2.4.3).
• Medical transportation employees on 24-hour shifts: exempt from 12-hour overtime (R. 2.4.4).
• Certain care employees: hospital/nursing home employees paid under the federal 8/80 rule requiring overtime for hours past 80 per 14-day period and 8 per day: exempt from 40- and 12-hour overtime (R. 2.4.5); and Medicaid-funded direct care workers on 24-hour shifts: exempt from 12-hour overtime (R. 2.4.7).
• Certain interstate transport employees: overtime-exempt to varying degrees, with some also exempt from meal/rest periods — see the particular rule for each type of employee (R 2.4.6, R 2.4.10).

Agricultural Employment (Rules 2.3, 2.4.8-2.4.9)

• See INFO #12 for more on agricultural labor rights and responsibilities — not just on the wage and hour rules below, but also on workplace safety, union-management relations, and more.
• Minimum wage: Colorado and local minimum wages cover all agricultural employees, except range workers have different requirements, a minimum salary plus other conditions (see below).
• Overtime pay is required, but agricultural employees are exempt from 40- and 12-hour overtime if paid: weekly time-and-a-half overtime pay after 48 hours, or 56 hours for a "highly seasonal" employer's up to 22 "peak" weeks (defined in Rule 2.3, which details other requirements for 56-hour overtime); and daily, the following additional pay — after 12 hours worked, a half-hour paid break instead of the usual shorter third rest period, and after 15 hours worked, an extra hour's pay of at least the Colorado minimum wage.
• Rest & meal periods under Rule 5 apply to agricultural employees, with the following additions: workers engaged in hand-weeding/thinning have 15 (not 10) minutes of rest per 4 hours; other break time may apply in certain conditions (see the Agricultural Labor Conditions Rules).
• Exemptions or variances for agricultural workers include the following (see Rules 2.3 and 2.4.8-2.4.9): owners (or part-owners) of agricultural employers, and certain of their family, are overtime-exempt; decision-making livestock managers paid the exempt salary in Rule 2.5 are overtime-exempt; operators of trucks hauling livestock or harvesters/combines are exempt from rest or meal periods; and range workers' minimum wage and overtime rights don't apply when a worker is "principally engaged in the range production of livestock … on the open range," provided, without cost or deduction, any housing, food, transport, and equipment required for H-2A visa range workers by federal regulations, and paid a weekly salary of at least $620.52 in 2026.

Deductions, Credits, and Charges (Rule 6)

• Colorado Wage Act limits on deductions from wages (C.R.S. § 8-4-105) are detailed in INFO #16.
• Lodging credits are allowed if housing is: (1) voluntarily accepted by the employee; (2) primarily for employee (not employer) benefit and convenience; (3) recorded in a written agreement; and (4) at most $25 or $100 weekly, by lodging type (less if market value or actual employer cost is lower).
• Meal credits are allowed for the cost or value (without profit) of meals that employees voluntarily accept.
• Uniforms: Employers need not provide uniforms that are ordinary, plain, and washable clothing (with no special color, make, pattern, logo, or material required), but must pay for particular uniforms or special apparel. Employers can't require deposits for uniforms, or deduct for ordinary uniform wear and tear.
• Tip credits: Up to $3.02 per hour may offset wages of employees regularly receiving $1.64 per hour in tips if: they either (A) directly receive those tips (e.g., waitstaff or hotel housekeepers), or (B) share them among employees who perform significant customer-service functions in contact with patrons; and their tips plus their direct wages from the employer still are at least minimum wage, with the employer paying the difference if direct wages plus tips fall below that minimum. Tipped employment must also comply with any higher local minimum; as of 2026, local governments may adopt tip credits over $3.02 per hour as long as their tipped minimum is at least the state amount. For more details on tips and tip credits, see INFO #3C, and for local minimum wages, INFO #19.

"Voluntariness" Requirements

• In the COMPS Order, and various other labor statutes and rules, some employee decisions or waivers aren't allowed (like working overtime hours without overtime pay), but others are allowed if the decision is voluntary rather than coerced or pressured (like coming back early from leave).
• No list can cover all situations that are and aren't voluntary, but established labor law principles include:
  1. A decision to take on work is not voluntary if refusing would subject the employee or others (e.g., co-workers, family, associates) to adverse action or other negative impacts. (Evans v. Books-A-Million, 762 F.3d 1288 (11th Cir. 2014).)
  2. A decision to take on work is voluntary if, for example: an employer just offered, as "two options," either full or partial time off with some paid work (D'Onofrio v. Vacation Pubs., 888 F.3d 197, 204 (5th Cir. 2018)); or an employee initiated the idea of taking on part-time work rather than staying on full leave — as long as there is no evidence the employee's decision "was anything but voluntary" (Massey-Diez v. Univ. of Iowa Cmty. Med. Servs., 826 F.3d 1149 (8th Cir. 2016)).
  3. A writing's language saying it is a "voluntary" employee decision or agreement doesn't overcome evidence it is non-voluntary in reality, such as: implied threats or pressure — for example, being told the employer "will take other actions" if the employee doesn't agree to what the employer asks; and requests repeated or strongly worded enough to be more like demands than offers — for example, if an employer "came back ... a third time" after an employee already declined to agree (Wilson v. Decibels of Oregon, Inc., No. 1:16-cv-00855-CL, 2017 U.S. Dist. LEXIS 176983 (D. Or. Sep. 11, 2017)).

Employer Record-Keeping and Posting Requirements (Rule 7)

• Records. Employers must: keep records for each employee with the information in Rule 7.1; issue employees itemized earnings statements for each pay period worked; and retain that information for at least 3 years plus the duration of any wage claim related to the employee.
• Posting. For updated COMPS Posters, see the Division website, ColoradoLaborLaw.gov. Employers must display a current COMPS Poster where employees may easily read it. If physical posting is impractical (e.g., remote employees, or worksites without viable posting sites), employers must provide each employee the COMPS Order or Poster in their first month of employment. Employers that fail to post as required are ineligible for employee-specific credits or exemptions.
• Distribution. If an employer distributes a handbook, manual, or written or posted policies, it must include a copy of the current COMPS Order or Poster — and if it requires signed acknowledgment of receiving those materials, it must require signed acknowledgement of receiving the current COMPS Order or Poster. Employers must make a copy of the COMPS Order or Poster available upon any employee's request.
• Minimizing, undercutting, or detracting from postings or notices renders an employer non-compliant — e.g., telling employees a right or responsibility doesn't apply, won't be followed, shouldn't be exercised, etc.
• Translation. If employees have limited English language ability, employers must use a version of the COMPS Order or Poster in the employees' primary language, or ask the Division for another language. The Division already has COMPS Poster translations in 16 other languages posted on its website, ColoradoLaborLaw.gov.

Complaint Rights, Procedures, & Protections (Rules 8.1-8.5)

• Employees may file wage and hour complaints with the Division, court, or another agency with lawful complementary jurisdiction (e.g., U.S. Department of Labor, or Denver Labor), for wages owed under any agreement (written or verbal), or under federal, state, or local law (e.g., city ordinance or rule) — see INFO #2.
• Individuals with operational control or ownership may be liable — see INFO #11A.
• It is illegal to take or threaten actions that retaliate for actual or anticipated activity on wage and hour rights, such as filing complaints, providing information, etc. (Rule 8.5, C.R.S. § 8-4-120) — see INFO #5.

For More Information: Visit the Division website, call 303-318-8441, or email [email protected].

INFOs are not binding law, but are the officially approved Division opinions and notices on how it applies and interprets various statutes and rules. Last updated Dec. 18, 2025.