Notably, the salary requirement does not apply to the outside salesperson exemption under COMPS Order 36. 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. 2.2.2 Executives or supervisors. There are narrow exceptions for qualifying doctors, teachers, lawyers, and employees in highly technical computer-related occupations. (3) "Drawer" means a person who signs or is identified in a draft as a person ordering payment. Title 8, Articles 1, 4, and 6. 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). (B) contact the Division to request that the Division, if possible, provide a version of the COMPS Order and poster in another language that any employee(s) need. This acknowledgment should be included when issuing or updating a handbook, but employers aren't required to reissue the handbook merely to update the COMPS . Employees of the ski industry performing duties directly related to ski area operations for downhill skiing or snowboarding, and those employees engaged in. 1.9.3 Sleep time means time an employee may sleep, which is compensable as follows. COMPS Order 36 defines compensable time worked as all time performing labor or services for an employers benefit, including all time employees are suffered or permitted to work, whether or not required. 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. In workdays requiring multiple rest periods under Rule 5.2, rest periods need not total exactly 10 minutes in each 4-hour period, as long as an employee: (A) receives rest periods that average, over the workday, at least 10 minutes per 4 hours worked; and. 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. When an employees shift is less than 24 hours, periods when s/he is permitted to sleep are compensable work time, as long as s/he is on duty and must work when required. Most provisions become effective March 16, 2020, with the exception of the increased salary thresholds, which begin on July 1, 2020. <> Employer Record-Keeping and Posting Requirements. 2.4.4 Medical Transportation. Littler Investigation Toolkit for Employers, Littler Inclusion, Equity and Diversity Playbook, Colorado Overtime and Minimum Pay Standards Order Number 36. 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. Compliance would include reviewing your compensation structure, pay grades, performance, hiring practices, and market benchmarking to start. Finally, COMPS Order 36 exempts certain categories of employees from its overtime rule. A hospital or nursing home may seek an agreement with individual employees to pay overtime pursuant to the provisions of the federal Fair Labor Standards Act 8 and 80 rule whereby employees are paid time and one-half their regular rate of pay for any work performed in excess of 80 hours in a 14 consecutive day period and for any work in excess of 8 hours per day. (B) clothing that is ordinary, plain, and washable that is prescribed as a uniform need not be furnished by the employer unless a special color, make, pattern, logo, or material is required. after investigation, determines and prescribes by order and which shall apply equally to all employers in such industry or occupation.); 8-6-116 (The minimum wages fixed by the director, as provided in this article, shall be the minimum wages paid to the employees, and the payment of a wage less than the minimum is unlawful); 8-6-117 (In every prosecution of this article, the minimum wage established by the director shall be prima facie presumed to be reasonable and lawful and the wage required to be paid. 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. The COMPS Order rejects those decisions and imposes a much more onerous requirement that employers generally pay for any time worked over one minute. 201 et seq.). 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. 1.3 Director means the Director of the Division of Labor Standards and Statistics. (4) Reserved. As previously discussed on this blog, the Colorado Division of Labor and Employment recently finalized its new wage order, titled COMPS Order 36. COMPS Order 36 covers all private sector employees, unless explicitly exempted by the Order as further discussed below. Colorado Overtime and Minimum Pay Standards Order (COMPS Order) #36 replaces Colorado Minimum Wage Order #35 (2019), and all prior Minimum Wage Orders. The COMPS Order, like the prior issued wage orders, is the source of critical Colorado wage rights and responsibilities beyond those provided by federal law: eligibility for the Colorado minimum wage, overtime pay for work past 40 hours per week and 12 hours per day, meal and rest breaks, and other employee and employer rights and Nor may employers provide time off, or comp time, in lieu of paying time and a half for overtime hours. endobj Every employer publishing or distributing to employees any handbook, manual, or written or posted policies shall include a copy of the COMPS Order, or a COMPS Order poster published by the Division, with any such handbook, manual, or policies. 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. 1.4 Division means the Division of Labor Standards and Statistics in the Colorado Department of Labor and Employment. xxTUWwuw*(kBIoHMJ a[*]L PE -Ii$af|Lm's_s@DDDDDDDDDDDDDDDDDDT7{I>""b)(1,")E"}DDDDDDOajJEa`wgQv! 8-6-116). 2.4 Exemptions from Overtime Requirements of the COMPS Order. Section 8 - Colorado Addendum 84 8-1. %PDF-1.4 This exemption covers individuals elected to public office and members of their staff. 7.3 Maintenance of Earnings Statement Information. Based on informal guidance form the Division, it may also be compliant to simply append the COMPS Order or Poster onto accessible electronic handbooks. Distribution: The CDLE requires, in its Rule 7.4.2 of 7 CCR 1103-1, that the most current COMPS Order poster (currently 38)also be distributed to employees "with any" handbook, manual or other policies, if and when an employer publishes or distributes any handbook, manual or policies. 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 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. These records must be maintained for a period of at least three years and for the duration of any pending wage claim pertaining to a given employee. 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. In response this blog noted that the CDLE has just issued some additional information. 8-4-121, 8-6-118. Acknowledgement of Occupant Rights - If Occupied. Whenever employers are subjected to Colorado law as well as federal and/or local law, the law providing greater protection or setting the higher standard shall apply. (3) the design, documentation, testing, creation, or modification of computer programs related to machine operating systems. 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. As of January 1, 2020, Colorado statutes also broadened the definitions of covered employees and employers in Colo. Rev. uestions arising with respect to the administration and interpretation of the COMPS Order. 1.2 Incorporation by reference. The minimum wage can be reduced by up to 15%, even if federal law permits lower wages, for non-emancipated minors and for persons certified by the Division as less efficient due to physical disability. (B) taxi cab drivers employed by a taxi service provider licensed by a state or local government. 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. In response [] 2.4.2 Commission Sales. 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. Rule 2 of COMPS Order 36 provides for exemptions from the Order, or portions of the Order, based on specific criteria. a notary must be an employee of a financial institution. 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). 4 0 obj 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. 2.3.3 Jobs in agriculture means jobs with work primarily within the same definition of agriculture as under 29 U.S.C. Colorado: COMPS Order Acknowledgment Form 264 Maine: Receipt of Non-Harassment Policy 265 Massachusetts: Receipt of Non-Harassment Policy 268 (D) interruptions to perform duties are considered time worked. 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 has adopted these broadened definitions. 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 . Most significantly, if an employee is not authorized and permitted to take a required rest period, COMPS Order 36 states that the employee is entitled to 10 minutes of additional pay. Record-Keeping, Wage Statement, and Posting Requirements. Employers with any employees with limited English language ability shall: (A) use a Spanish-language version of the COMPS Order and poster published by the Division, if the employee(s) in question speak Spanish; or. """"""W{@. 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. Copies may be obtained from the Division of Labor Standards & Statistics at a reasonable charge. (See my article below, posted 5/20/2020.) 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. COMPS Order36 sets forth detailed criteria for each of these exemptions. 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. <> stream Effective January 1, 2021, the Colorado minimum wage will increase to $12.32 per hour for nonexempt employees. As under federal law, hours in two or more weeks cannot be averaged in computing overtime. 4.3 Overtime for Minors. Rule 5.2 of COMPS Order 36 clarifies prior Minimum Wage Order language that required rest periods for each four hours of work or major fraction thereof. COMPS Order 36 makes clear that a major fraction means two hours. 1.5 Employee, as defined by C.R.S. See C.R.S. 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. 1 0 obj 5.2.3 Required rest periods are time worked for the purposes of calculating minimum wage and overtime obligations. This exemption covers the below-listed in-residence employees. It shall be unlawful for an employer to assert a claim to, right of ownership in, or control over tips or gratuities intended for employees in violation of the Colorado Wage Act, including C.R.S. 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. Read the code on FindLaw 2.1 Scope of coverage. 19-1267, effective January 1, 2020. 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. Colorado: 3.3% COMPS Order 36 has proven to be an overhaul of existing Colorado law, reaching many employers previously exempt from prior wage orders. (a) In this title: (1) "Acceptor" means a drawee who has accepted a draft. 1.13 Workweek means any consecutive set period of 168 hours (7 days) starting with the same calendar day and hour each week. The proposed COMPS Order clarifies that, "to the extent practical," rest periods shall be provided in the middle of each four-hour work period. 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. There is no minimum size of a wage claim, and thus no claim too minimal (de minimis) for recovery, because Article 4 requires paying [a]ll wages or compensation (C.R.S. 2.2.8 Bona fide volunteers and work-study students. 1u5h.JU}6e! Employee acceptance of a meal must be voluntary and uncoerced. As under federal law, deductions may be made from the above salary requirements only under limited circumstances. Under Colorado law, for shifts in excess of five hours, employees are entitled to an uninterrupted, duty-free, 30-minute meal period. 7.4 Posting and Distribution Requirements. Rule 7 of COMPS Order 36 includes extensive requirements for employers with respect to record-keeping, wage statements, and posting and distribution of COMPS Order 36. Therefore, employers must authorize or permit 10-minute, off-duty rest periods for every four hours of work, in accordance with the following chart: Rest periods are required to be compensated. 2.4.5 Eight and Eighty Rule. (C) Minimum Wage Order references. 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. (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. Prior Wage Orders covered only four industries: Retail/Service, Food/Beverage, Health/Medical, and Commercial Support Service. COMPS Order 36 also clarifies the meal credit requirement. Under the C.R.S. (B) for a non-profit employer, is the highest-ranked and highest-paid employee, and is paid at least the salary threshold in Rule 2.5. COMPS Order #36 took effect March 16, 2020, with three narrow modifications based on developments since the original January adoption of COMPS Order #36, yielding the current version of COMPS posted above. 4 Annual equivalents are based on 2080 hours over 52 weeks of 40 hours, as under the federal Fair Labor Standards Act, and are rounded to the nearest dollar. 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. 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. Previously, only a handful of industries were required to provide meals and breaks to their employees. Dec'21- Dec'22: 104,700, 2023 Minimum Wage 1.6 Employer, as defined by C.R.S. Adopted on January 22, 2020. 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. 8.6 Division and Dual Jurisdiction. (1) Rule 2.2.7 (F) exemption requires that field staff be paid either (a) the applicable Colorado minimum wage for all hours worked, or (b) a salary (i) equivalent to at least 42 hours per week at 90% of the Colorado minimum wage (with the 15% reduction that Rule 3.3 permits for unemancipated minors), (ii) reduced 25% for non-profit employers 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. If a local government has enacted a higher minimum wage a practice that has surged due to recent legislation in Colorado work covered by the local minimum wage ordinance must be paid at that higher wage. The greatest change in COMPS Order 36 is its expanded coverage. The page you are about to view is currently not optimized for mobile devices. New York and New Jersey Join Growing Ranks of States Penalizing Call Center Relocation, Thinking It Through: Wage and Hour Implications of Employer Responses to the Coronavirus, WPI Wage Watch: Minimum Wage, Tip, and Overtime Developments (February Edition), Ninth Circuit Reaffirms Only Job-Related Factors Will Excuse Pay Disparity Under Federal EPA, Prior Salary Not Job-Related, The Final Rule on Overtime is Finally Here: Minimum Salary Level for Exemption Increased to $35,568 Effective January 1, 2020. Additional exemptions under Rule 2.2 exist for qualifying owners and proprietors, interstate transportation workers and taxi cab drivers, in-residence workers, range workers in jobs related to herding or production of livestock, field staff of seasonal camps or outdoor education programs, bona fide volunteers and work-study students, and elected officials and their staff. (A) Casual babysitters employed in private residences directly by households, or directly by family members of the individual(s) receiving care from the babysitter. 1.8.1 Pay included in regular rate. Employers are required to authorize or permit rest periods but are not required to ensure they are taken. endobj 8-4-101, et seq. Please note that the form is currently not optimised for mobile devices. This article summarizes the key changes. 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. Were ready for your tomorrow because were built for it. Effective March 16, 2020. or convenience of the employee, rather than of the employer; and. 201 et seq.) COMPS Order 36 provides two narrow exceptions from the requirement that employers provide 10-minute, off-duty rest periods for every four hours worked. 2.5 Salary Thresholds for Certain Exemptions. Employer-required sharing of tips with employees who do not customarily and regularly receive tips, such as management or food preparers, or deduction of credit card processing fees from tipped employees, shall nullify allowable tip credits towards the minimum wage. 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