Colorado Overtime Laws

April 14th 2026

According to Colorado labor laws, employers are required to compensate employees for their overtime work. The state has some of the most employee-friendly overtime laws in the U.S., governed by the Colorado Overtime and Minimum Pay Standards (COMPS) Order issued by the Colorado Department of Labor and Employment (CDLE).

If you’re searching for:

  • What counts as overtime in Colorado?
  • Are salaried employees eligible for overtime?
  • Is comp time off allowed in Colorado?

This guide provides clear answers to key overtime rules, including who qualifies for overtime, how overtime is calculated for tipped, salaried, and commission-based workers, rules around compensatory time, exemptions, and compliance tips.

Colorado Overtime Laws Summary

Colorado overtime law Employees must receive overtime pay at 1.5 times their regular rate of pay once they work more than 12 hours in a day, 40 hours in a week, or 12 hours consecutively
Colorado minimum wage $15.16 per hour

In some areas, higher local minimum wages apply
Minimum overtime rate $22.74 per hour for minimum wage workers
Comp time Not allowed
Salary threshold for overtime exemption $1,111.23 per week ($57,784 per year)

This Article Covers

What Are Colorado Overtime Laws?

Colorado overtime laws are stricter than federal law under the Fair Labor Standards Act (FLSA) rules. The state’s Colorado Overtime and Minimum Pay Standards (COMPS) Order adds extra protections, including daily overtime and consecutive-hour rules.

Under Colorado overtime laws, employers must pay time-and-a-half an employee’s regular rate when they work more than:

  • 40 hours in a workweek
  • 12 hours in a single workday
  • 12 consecutive hours, regardless of when the shift starts or ends

Employers must apply whichever rule results in the highest overtime pay.

Averaging hours across multiple weeks is not allowed when calculating overtime pay in Colorado.

What Counts as “Hours Worked” in Colorado?

Colorado has a broad definition of compensable work hours, which includes:

  • Time on duty or at the workplace
  • Putting on/removing required gear
  • Waiting for assignments
  • Security screenings
  • Clocking in/out
  • Work-related communication
  • Travel time for the employer benefit

If the employer controls your time, it generally counts as hours worked for wages and overtime calculations.

Special Overtime Rules for Agricultural Employees in Colorado

Agricultural employees in Colorado follow different overtime rules than most workers. Overtime applies after 48 hours in a workweek. For certain highly seasonal employers, overtime may apply after 56 hours during up to 22 peak weeks.

Additional daily pay rules include:

  • After 12 hours of work, the employee must receive a paid 30-minute break
  • After 15 hours of work, the employee must receive one extra hour of pay at least at the Colorado minimum wage

These rules replace the standard 40-hour weekly and 12-hour daily overtime thresholds for most agricultural workers under Colorado overtime laws.

Overtime Pay Rates in Colorado

Overtime pay is calculated at 1.5 × the employee’s regular rate of pay under Colorado overtime laws.

An employee’s regular rate of pay includes their hourly wages, salaries, commissions, shift differentials (extra pay for nights, weekends, holidays), and non-discretionary bonuses. However, it does not include paid time off (vacation, sick leave), expense reimbursements, and discretionary bonuses.

With Colorado’s minimum wage at $15.16 per hour, the state’s minimum overtime pay rate is: 1.5 x $15.16 = $22.74 per hour

Overtime Pay Rate for Minors in Colorado

In most cases, minors can be paid 15% below the standard minimum wage in Colorado.

  • Minimum wage for minors: $12.89 per hour [$15.16 – (15% x $15.16)]
  • Minimum overtime rate for minors: 1.5 x $12.89 = $19.34 per hour

Local Minimum Wage and Overtime Rates in Colorado

Some Colorado cities and counties have higher local minimum wages, which means higher overtime pay rates.

Location Minimum Wage Minimum Overtime Rate
Denver (City/County) $19.29 per hour $28.94 per hour
Edgewater $18.17 per hour $27.26 per hour
Boulder (City/County) $16.82 per hour $25.23 per hour

Who is Entitled to Overtime Pay in Colorado?

According to Colorado overtime laws, overtime pay is required for all non-exempt employees.

However, an employee’s overall eligibility for overtime pay will be based on their job duties and industry, not just salary thresholds.

Learn more about your overtime rights in Colorado.

Overtime Exceptions and Exemptions in Colorado

Some employees are exempt from overtime pay under Colorado overtime laws, based on a minimum salary threshold and job duties. The most common exemptions include:

  • Executive, administrative, and professional employees earning at least $57,784 per year
  • Doctors, lawyers, and teachers
  • Highly compensated employees earning at least $130,014 per year
  • Computer professionals earning at least $34.85 per hour
  • Outside sales employees (if most of their work involves sales)
  • Business owners (20% or more ownership) actively managing the company
  • Certain resident workers, such as live-in caregivers, property managers, and camp or outdoor education staff
  • Government-licensed taxi drivers
  • Volunteers for nonprofits
  • Work-study students earning academic credit
  • Elected officials and their staff
  • Farm owners and some family members
  • Livestock managers who meet salary requirements
  • Certain range workers involved in open-range livestock production and earning at least $620.52 per week

Some employees are not fully exempt but may follow different overtime rules in Colorado. Examples include:

  • Retail or service commission employees (if most income is from commissions)
  • Vehicle or farm equipment sales workers and mechanics
  • Ski industry workers (limited overtime rules)
  • Healthcare workers under special schedules (like those paid under the federal 8/80 rule and Medicaid-funded care workers on 24-hour shifts)
  • Medical transport workers on 24-hour shifts
  • Interstate transportation workers

Refusing to Work Overtime in Colorado

Colorado state laws do not mention mandatory overtime, so that’s where the federal Fair Labor Standards Act (FLSA) comes in.

According to the FLSA, mandatory overtime is allowed, which means that employers are allowed to force their employees to work overtime hours. The federal law also allows employers to take disciplinary action against an employee who refuses overtime work.

Is Compensatory Time Allowed in Colorado?

Employers cannot offer compensatory time or comp time off instead of paying overtime wages, as per the rules under the Colorado Overtime and Minimum Pay Standards (COMPS) Order. Employees must be paid overtime at time-and-a-half (1.5x) their regular rate of pay for all overtime hours.

Colorado Overtime Laws for Tipped Employees

In Colorado, tipped employees are still entitled to overtime pay, even though their hourly cash wage can be lower than the standard minimum wage. This is made possible through a tip credit system.

A tip credit allows employers to pay a reduced base wage to tipped workers, as long as the employee’s tips make up the difference to reach the full minimum wage. For example, Colorado’s minimum wage is $15.16 per hour, but employers can pay tipped employees a cash wage of $12.14 per hour, applying a $3.02 tip credit.

Some cities have higher local minimum wage rates, and employers must follow those local laws when applying the tip credit:

Location Total Minimum Wage Minimum Cash Wage Tip Credit
Colorado (statewide) $15.16 per hour $12.14 per hour $3.02 per hour
Denver (City/County) $19.29 per hour $16.27 per hour $3.02 per hour
Edgewater $18.17 per hour $13.50 per hour $4.67 per hour
Boulder (City/County) $16.82 per hour $13.80 per hour $3.02 per hour

To use a tip credit, employees must regularly earn at least $1.64 per hour in tips. This typically applies to workers who receive tips directly (like servers or hotel staff) or participate in valid tip pools with other customer-facing employees.

Importantly, employers must ensure that total earnings (cash wage + tips) always meet or exceed the applicable minimum wage in Colorado. If they don’t, the employer is required to make up the difference.

How Overtime is Calculated for Tipped Employees

Overtime pay for tipped employees in Colorado is calculated based on the full minimum wage, not the lower tipped wage.

That means:

Overtime rate = 1.5 × full minimum wage

Example: 1.5 × $15.16 = $22.74 per hour

Tips are not included when calculating the overtime rate. However, employees still keep all their tips on top of their overtime wages. This ensures that tipped workers receive fair overtime compensation, regardless of the reduced base wage structure.

Learn more about overtime calculation in Colorado, or use our free overtime calculator for quick answers.

Colorado Overtime Laws for Salaried Employees

Non-exempt salaried employees must be paid overtime when they work beyond certain limits, as defined by Colorado overtime laws. Overtime applies for all hours an employee works over 40 in a workweek, or 12 in a single workday, or 12 consecutively, regardless of when their workday starts and ends.

Employees must get overtime based on whichever rule gives them the highest overtime pay.

Salaried employees don’t have an hourly rate upfront, so employers must calculate it first. Employers must divide the employee’s weekly salary by the number of hours that salary is meant to cover.

If their salary is meant to cover 40 hours, divide by 40.

If it covers all hours worked, divide it by the actual hours worked (only if certain conditions are met; explained below).

  • Both the employee and  employer clearly agree that the salary covers all hours worked
  • Employee’s average pay still meets minimum wage requirements
  • Employee receives an extra 0.5× (half-time) pay for overtime hours
  • Employees are paid the full salary regardless of hours worked in that week

If these conditions are not met, employers must assume the employee’s salary covers 40 hours only when calculating overtime.

Once the employee’s regular rate is found:

Overtime pay = 1.5 × regular hourly rate

Because Colorado overtime laws include daily and consecutive-hour overtime rules, employees may qualify for overtime pay even if they don’t exceed 40 hours in a workweek. This makes Colorado one of the more employee-friendly states when it comes to overtime protections.

Explore other Colorado labor laws for salaried employees.

Colorado Overtime Laws for Piece-Rate Employees

Under Colorado overtime laws, most employees are entitled to minimum and overtime wage rules, regardless of how they get paid. This includes piece-rate workers in the state, who are paid by the piece (for example, per task, unit, or job completed).

Overtime applies at 1.5 x their regular rate of pay, which is calculated a bit differently.

Employers must calculate the employee’s total earnings for the week: Piece-rate earnings + Bonuses + Pay for waiting time or other work hours

Then divide that total by the total number of hours the employee worked that week.

Regular hourly rate = Total earnings / Number of hours worked

If the employee worked more than 40 hours in a week, or 12 hours in a day. Or 12 hours consecutively, they must get extra pay for those overtime hours. Since the employee’s piece-rate earnings already cover their regular pay for all hours, employers only need to pay an extra half-time pay for overtime.

Overtime pay = 0.5 × regular hourly rate × overtime hours

Example

Total weekly earnings = $850

Total hours worked = 50

Regular rate = $850 / 50 = $17 per hour

Overtime hours = 10 (considering they didn’t work more than 12 hours on any day and more than 12 hours consecutively during the week)

Overtime pay = 0.5 × $17 × 10 = $85

Total pay = $850 + $85 = $935

Colorado Overtime Laws for Commissioned Employees

Under Colorado overtime laws, employees who earn commissions are still entitled to overtime pay. Their overtime rate is based on a regular hourly rate that includes both wages and commissions.

For example, let’s say an employee works 45 hours a week at a rate of $16 per hour and receives $150 in commissions for that week.

Employee’s total weekly earnings = (Total hours x Hourly rate) + Commission

(45 hours x $16.00 per hour) + $150 = $870.00

Then, divide that by the total hours worked in the week to find the employee’s regular hourly rate.

Regular hourly rate = $870.00 / 45 = $19.33 per hour

This is the regular rate, which includes commissions.

Since the employee already received full pay for all 45 hours (including commissions), they are owed extra half-time pay for overtime hours.

Overtime hours = 5

Overtime rate = $19.33 / 2 = $9.67

Overtime premium = $9.67 × 5 = $48.35

Total weekly pay = $870.00 + $48.35 = $918.35

Final overtime pay depends on hours worked, base pay, and commissions earned.

Penalties for Violating Overtime Laws in Colorado

The Colorado Department of Labor and Employment (DOLE) can fine employers for failing to pay proper overtime or wages. Employers can be ordered to pay unpaid wages, plus extra fines on top.

Once an employee makes a written demand for unpaid wages, the employer has 14 days to pay. If they don’t pay within that time, penalties are added automatically.

Penalties depend on whether the violation was willful (intentional) or not:

For non-willful violations of Colorado overtime laws, employers can be asked to pay a penalty of 2x the unpaid wages or $1,000 (whichever is greater), while for willful violations, the penalty amount can go up to 3x the unpaid wages or $3,000 (whichever is greater).

After the Colorado Division issues an order:

If the employer pays within 14 days, penalties may be reduced by 50%. This is to encourage faster payment.

If the employer still hasn’t paid after 60 days, penalties increase by 50% (or, at least $3,000 more).

The Colorado Division only deals with claims up to $7,500 of unpaid wages. For claims over this amount, employers can take cases to court.

Read penalties for breaking laws in Colorado.

Important Cautionary Note

This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.