Colorado Overtime Laws

April 17th 2025

According to Colorado Labor Laws, employers are required to compensate non-exempt employees for their overtime work.

This article covers who qualifies for overtime, how it’s calculated—including for tipped, salaried, and commission-based workers—rules around compensatory time, exemptions, penalties for non-compliance, and key legal cases.

This article covers:

Colorado Overtime Rates

Overtime rules in Colorado generally follow the federal Fair Labor Standards Act (FLSA) but with additional protections under state law. Overtime pay is set at 1.5 times the regular hourly rate for work performed by an employee exceeding:

  • 40 hours per workweek
  • 12 hours per workday, or
  • 12 consecutive hours of work (regardless of the time started and ended)

Since the regular Colorado minimum wage is $14.81 per hour, this puts Colorado’s minimum overtime pay rate at: ($14.81 per hour x 1.5 = $22.22 per overtime hour).

Agricultural employees in Colorado, on the other hand, are entitled to overtime pay after working 48 hours in a week. At certain highly seasonal worksites, this limit increases to 56 hours. They are also entitled to additional breaks and extra pay when working long shifts.

Overtime Entitlement in Colorado

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

An employee’s overall eligibility for overtime pay will be based on what their job duties are as well as what type of business the business is in.

Read more about Overtime Exemptions in Colorado.

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.

Compensatory Time in Colorado

Compensatory time, or “comp time”, for non-exempt employees in Colorado is not allowed for any employer covered under the Colorado Overtime and Minimum Pay Standards Order (COMPS Order).

Comp time is when an employee is given time off instead of receiving overtime pay. The rate for comp time is also at the rate of time-and-a-half.

Overtime for Tipped Employees in Colorado

In Colorado, tipped employees must still be paid overtime, even though their base wage is lower than the regular minimum wage. This is due to something called a tip credit.

A tip credit allows employers to pay tipped workers less than the standard minimum wage, as long as their tips make up the difference. For example, Colorado’s minimum wage is $14.81, but employers can pay tipped workers $11.79, using a $3.02 tip credit.

When it comes to overtime, the overtime rate is based on the full minimum wage—not the lower tipped wage. So, for overtime hours, employers must calculate pay using $14.81 as the base, subtract the tip credit, and then apply the overtime rate. Tips themselves are not included in the overtime calculation.

    Overtime for Salaried Employees in Colorado

    Salaried employees in Colorado are entitled to overtime (check Overtime Exemptions in Colorado), must divide their salary by the number of hours that salary compensates for to get their regular rate to calculate their overtime rate further.

    If an employee’s salary covers less than 40 in a workweek, their regular rate will be added for every subsequent hour working up to the 40. Only after 40 hours will time-and-a-half be counted.

    If an employee’s salary covers 40 in a workweek, then time-and-a-half will be paid for any hours over 40.

    Overtime for Piece Rate in Colorado

    Under federal law, if an employee is paid on a piece rate basis, they are entitled to overtime at a rate of 1.5 for every overtime hour worked.

    Piece rate is when workers are paid by the unit performed (e.g. the number of tee shirts or bricks produced) instead of being paid based on time spent working.

    Calculating Overtime with Commission in Colorado

    Employees in Colorado who receive commissions are eligible for overtime at a rate of 1.5 times their regular hourly rate. Their regular hourly rate must include the commissions earned as well. However, they will only be given half of that rate for every overtime hour.

    For example, let’s say an employee works 45 hours a week at a rate of $10 per hour and receives $100 in commissions for that week. We need to first calculate the new regular hourly rate.

    To do so:

    (Total hours x Hourly Rate) + Commission

    = (45 hours x $10.00 per hour) + $100

    = $550 (total weekly earnings)

    Then, divide that by the total hours worked in the week.

    = $550 ÷ 45 hours

    =$12.22 per hour

    Now, to determine the overtime rate for the commissioned employees, we need to take that new regular hourly rate and halve it.

    = $12.22 ÷ 2

    = $6.11 (commissioned employees’ overtime rate)

    Since the employee worked an extra 5 hours in the week, that makes his overtime compensation: ($6.11 x 5 hours = $30.56).

    This amount will vary according to the hours worked, hourly rate, and commission earned.

    Overtime Exemptions in Colorado

    Certain job categories in Colorado are exempt from overtime pay. This includes executives, professionals, and administrative employees, depending on their job description and salary.

    Under the Colorado Overtime & Minimum Pay Standards (COMPS), the following are exempted from overtime:

    • Professionals earning at least $56,485 annually and performing executive, administrative, or professional duties
    • Highly compensated employees earning at least $107,432 annually, with non-manual duties and at least one executive or administrative duty
    • Salespersons, ski industry workers, mechanics, and some commission-based retail or service employees.

    Statute of Limitations For Unpaid Overtime in Colorado

    According to Colorado law, the statute of limitations for filing a complaint regarding overtime (or other unpaid wages) is 2 years.

    For willful violations, the statute of limitations is 3 years.

    Penalties for Not Providing Overtime Pay in Colorado

    In Colorado, employers can be fined by the Colorado Department of Labor and Employment (DOLE) for not providing overtime pay to their employees. Fines can go up to $1,000 per employee per day for each violation.

    The following are some other examples of penalties that may be imposed on an employer if an employee chooses to file a lawsuit:

    • Back wages for all overtime hours worked
    • Damages for emotional distress, inconvenience, and loss of wages
    • Attorney’s fees

    The DOLE also has the authority to issue a stop-work order if an employer has violated overtime laws. This means that the employer must put a stop to all work until the issue is resolved.

    Legal Cases Relating to Overtime Compensation in Colorado

    Below, we present law cases relating to fair overtime compensation for employees in Colorado: 

    1. Healthcare Staffing Company Pays Over $75,000 as Back Wages to Employee

    In the case of Armani v. Maxim Healthcare Services, Inc., Gianni Armani filed a lawsuit against Maxim Healthcare Services (Maxim) for unpaid overtime compensation. Armani was a certified nursing assistant (CNA) employed under Maxim, a company that provided nursing and health-related services to injured, disabled, and other persons in need of care. 

    During his employment, Armani was regularly working more than 40 hours per week. However, Maxim only compensated him for the regular hours worked and did not provide overtime wages.

    Maxim argued that Armani was an exempt employee under the FLSA, which states that “domestic service employees” were not entitled to overtime pay. Maxim claimed Armani was a domestic service employee because he provided personal care services to the clients, such as bathing, dressing, and general upkeep.

    The court disagreed with Maxim’s arguments as it was found that Armani was not an exempt employee as he was not employed directly by the clients he was servicing but was employed by Maxim which was a for-profit staffing company.

    Ultimately, the court awarded Armani all the overtime back wages he was owed, plus interest as well as attorney’s fees for the lawsuit filed.

    Key lessons from this case:
    • Colorado courts will interpret the definition of “domestic service employee” in a way that is consistent with the purpose of the FLSA, which is to prevent workers from exploitation.
    • CNAs who work for for-profit staffing companies are not exempt from overtime pay.
    • Employees who work for staffing agencies may still be eligible for overtime pay, even if they provide personal care services.

    2. Court of Appeals Reverses $2M Lawsuit Against Healthcare Service Company

    In the case of Jordan v. Maxim Healthcare Services, Inc., Theresa Jordan filed a lawsuit against Maxim Healthcare Services (Maxim) for violating the Fair Labor Standards Act (FLSA). Jordan, certified nursing assistant (CNA) for Maxim, claimed that Maxim had failed to pay her, and other similarly situated employees, overtime wages. 

    The CNAs worked for Maxim as home healthcare aides. They often worked more than 40 hours a week but were only paid for their regular hours. They were not given overtime pay for any additional hours worked. 

    Maim argued that the CNAs were considered exempt from overtime due to the FLSA’s companionship exemption. This exemption applies to employees who provide companionship services to disabled or chronically ill individuals. 

    The court initially disagreed with Maxim’s argument as it was found that the CNAs did not meet the companionship exemption requirements. Settlement amounting to $2,015,253 for overtime back wages was set to be awarded to the CNAs.

    However, this decision was reversed by the Court of Appeals. The court found that Jordan and the other CNAs were employed by a third-party employer, which makes them exempt from overtime pay under Colorado law. 

    The case was remanded back to the district court and instructed to enter a ruling in favor of Maxim.

    Key lessons from this case:
    • The case emphasizes the importance of identifying the relationship between employees and their third-party employers to determine overtime eligibility.
    • This case highlights that a judgment can be reversed even if the initial ruling included a settlement amount.
    • Employees need to familiarize themselves with the specific exemptions that apply under both Colorado state and federal law as both can be used depending on the circumstances.

    3. FedEx Wins Lawsuit Against Employees Who Seek to Claim Overtime Back Wages

    In the case of Bachanov v. FedEx Ground, Andrew Bachanov filed a lawsuit against FedEx Ground (FedEx) for failing to pay its drivers overtime wages. Bachanov, a former FedEx driver, claims that he was not properly compensated for the overtime hours that he had worked. 

    FedEx argued that its drivers were considered exempt from overtime pay under the Colorado Minimum Wage Order that exempts drivers involved in interstate commerce. Bachanov claims that as a driver, he did not cross state lines as his role only included shipments within Colorado.

    There were conflicting interpretations on whether this exemption applied only to drivers transporting goods within Colorado but were engaged in interstate commerce. One interpretation considered the physical crossing of state lines while another considered the character of the shipment in nature (whether or not their work contributes to the overall interstate nature of the business).

    It was found that the nature of the shipment applies to this case. Meaning that even though Bachanov did not physically cross state lines, his work still contributes to the overall interstate nature of FedEx. Therefore, the drivers were considered exempt from overtime pay.

    Ultimately, the court ruled in favor of FedEx and dismissed Bachanov’s claims. The case has been dismissed.

    Key lessons from this case:
    • Colorado labor laws will consider the circumstances of each case to determine whether the transportation work qualifies as part of interstate commerce. 
    • Drivers performing intrastate (within a state) transportation that contributes to interstate commerce may still be considered exempt from overtime pay.
    • Employees need to be aware of any interpretations within a state that can influence their overtime eligibility.

    Learn more about Colorado Labor Laws through our detailed guide.

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