Colorado Overtime Law: Daily Overtime, the 40-Hour Rule, and Exemptions

Colorado is one of the few states with a daily overtime rule. Under the Colorado Overtime and Minimum Pay Standards (COMPS) Order, a non-exempt employee must be paid 1.5 times their regular rate for hours worked over 40 in a workweek, over 12 in a single workday, or over 12 consecutive hours (regardless of when the workday starts and ends) - whichever calculation produces the greater amount of overtime pay. This goes well beyond the federal Fair Labor Standards Act (FLSA), which only requires overtime after 40 hours in a week and has no daily overtime rule at all.

How Colorado Overtime Actually Works

The controlling rule is not a statute you will find in one tidy sentence - it is the COMPS Order, a regulation reissued annually by the Colorado Department of Labor and Employment (CDLE), Division of Labor Standards and Statistics. The COMPS Order replaced the older "Colorado Minimum Wage Order" and now sets minimum wage, overtime, breaks, and exemption rules for most private-sector workers in the state.

The key feature is the three-part overtime trigger. Your employer must pay time-and-a-half when you exceed any of these thresholds:

  • 40 hours in a workweek (the same as the federal floor);
  • 12 hours in a single workday; or
  • 12 consecutive hours worked, without regard to whether those hours fall in the same calendar workday.

Because these can overlap, the COMPS Order says you get whichever computation results in the greater payment of wages - the employer cannot pick the cheaper method. The hours are not stacked or double-counted; you simply compare the totals and the larger overtime figure controls.

A practical example: if you work four 13-hour days in one week (52 hours total), you are owed daily overtime for the hour past 12 on each of those days and weekly overtime for hours past 40 - calculated under the method that pays you more. A worker on the standard federal-only rule would receive far less, because federal law ignores the long individual days entirely.

The Overtime Rate and the "Regular Rate"

Overtime in Colorado is paid at 1.5x your regular rate of pay. The "regular rate" is not always just your base hourly wage - it generally includes nondiscretionary bonuses, shift differentials, and commissions, which can raise the rate on which overtime is calculated. Colorado does not require "double time" for any hours; the multiplier is one-and-a-half, the same factor used under federal law.

Colorado's minimum wage is also higher than the federal $7.25. The state constitution adjusts the minimum wage for inflation every January 1. As of 2026, confirm the exact current figure with CDLE - it sits well above the federal minimum (it was $14.81 per hour in 2025 and rises annually). Some localities, such as Denver, set an even higher local minimum wage. Because these numbers change every year, do not rely on a remembered figure; verify the current rate on the CDLE website before calculating what you are owed.

Who Is Exempt From Colorado Overtime

Not every worker is covered. The COMPS Order exempts certain categories, and the definitions are often narrower than people assume. Being paid a salary, by itself, does not make you exempt.

The main "white-collar" exemptions are for employees who meet both a duties test and a salary test:

  • Executive or supervisor - primarily manages an enterprise or department and directs the work of others;
  • Administrative - performs office work directly related to management policies or general business operations, with discretion and independent judgment;
  • Professional - work requiring advanced knowledge in a field of science or learning, typically from prolonged specialized instruction.

To qualify, these employees must also be paid a salary above the COMPS Order's threshold, which the CDLE raises each year and which is higher than the federal salary threshold. As of recent COMPS Orders the Colorado weekly salary minimum was set in the range of roughly $1,000-$1,100 per week and increases annually - check the current COMPS Order for the exact figure rather than assuming.

Other exemptions include outside salespeople, certain interstate transportation workers, some agricultural roles, and specific occupations the COMPS Order names. There are also partial exemptions and industry-specific rules. Misclassification is common: many "managers" who spend most of their time doing the same work as the people they supervise are actually entitled to overtime. If your duties do not truly match the exemption definition, you may be owed back pay even if your title and salary suggest otherwise.

How to Recover Unpaid Overtime in Colorado

If you believe you were underpaid, you have more than one path:

  • File a wage complaint with CDLE. The Division of Labor Standards and Statistics investigates unpaid-wage and overtime claims and can order payment. This is a free administrative route and does not require a lawyer.
  • Make a written demand. Colorado's Wage Claim Act lets you (or your attorney) send a written demand for unpaid wages; an employer that fails to pay within the statutory window can owe significant penalties on top of the wages.
  • File a lawsuit. You can sue in court for unpaid overtime, and you may be able to recover penalties, interest, and attorney's fees. Some workers pursue federal FLSA claims as well, but Colorado's daily-overtime rule is usually more generous.

Deadlines matter. Colorado wage claims are generally subject to a two-year statute of limitations, extended to three years for willful violations. The clock can keep running on each missed paycheck, but waiting still costs you - older unpaid hours fall off as time passes. Keep your own records: hours worked, schedules, pay stubs, and any communications about your pay. These are often the difference between a provable claim and a swearing match.

Retaliation for asserting wage rights - firing, demotion, or discipline because you complained - is unlawful, and Colorado provides remedies for it.

Where to Verify

Always confirm the current rules and dollar figures with the Colorado Department of Labor and Employment (CDLE), Division of Labor Standards and Statistics, which publishes the active COMPS Order, the current minimum wage, and the salary thresholds each year. Because the COMPS Order is reissued annually and the wage figures adjust for inflation, the official CDLE source is the authoritative place to check before you calculate overtime or file a claim. For the federal baseline, the U.S. Department of Labor's Wage and Hour Division administers the FLSA.

This page is based on Colorado employment law. Rules and figures change — verify the current details directly with the official Colorado sources below. This is general legal information, not legal advice.

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Colorado state law.

Frequently asked questions

Does Colorado require daily overtime?

Yes. Unlike federal law, Colorado's COMPS Order requires time-and-a-half for hours worked over 12 in a single workday or over 12 consecutive hours, in addition to the over-40-per-week rule. You get whichever calculation pays the most.

What is the overtime rate in Colorado?

Overtime is paid at 1.5 times your regular rate of pay. The regular rate generally includes nondiscretionary bonuses, commissions, and shift differentials, not just your base hourly wage. Colorado does not require double time.

Does being paid a salary mean I'm exempt from overtime in Colorado?

No. A salary alone does not make you exempt. You must also meet a specific duties test (executive, administrative, professional, or another listed exemption) and be paid above the COMPS Order's annual salary threshold. Many salaried 'managers' are actually owed overtime.

How long do I have to file an unpaid overtime claim in Colorado?

Colorado wage claims are generally subject to a two-year statute of limitations, extended to three years for willful violations. Filing promptly protects older unpaid hours from falling outside the window.

Who enforces overtime law in Colorado?

The Colorado Department of Labor and Employment (CDLE), Division of Labor Standards and Statistics, enforces the COMPS Order and investigates unpaid-wage complaints. You can file a free wage complaint with the Division or pursue a lawsuit.

This article is general legal information, not legal advice, and may not reflect the most current law or the law in your jurisdiction. Laws vary by state and change over time. For advice about your specific situation, consult a licensed attorney.

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