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COMPS is here! CDLE adopts new wage and hour rules

March 2020 employment law letter
Authors: 
Rob Thomas, Holland & Hart, LLP

In enacting Colorado Overtime and Minimum Pay Standards (COMPS) Order #36, the Colorado Department of Labor and Employment (CDLE) has expanded the state's wage and hour protections to new industries, implemented stricter salary threshold requirements for exemptions from the state's overtime pay requirements, and enacted other modifications to the wage and hour rules that will have a significant impact on Colorado employers.

Most significant changes

The CDLE adopted the COMPS Order on January 22, 2020, approximately two months sooner than anticipated. Effective March 16, the new order replaces Colorado Minimum Wage Order #35.

The two most significant changes effected by the COMPS Order are (1) its application to all private-sector Colorado employers, unless they're specifically exempted, and (2) its prospective increases to the minimum salary threshold required for employees to qualify for exemptions from Colorado's overtime pay protections. The COMPS Order also makes numerous changes to state wage and hour rules, including definitions of exemptions, rest period regulations, and meal and lodging credits.

COMPS Order 36 applies to all private-sector employers not specifically exempted. Before the COMPS Order, Colorado's wage orders were limited to private-sector employers and employees in four industries:

  1. Retail and service;
  2. Health and medical;
  3. Food and beverage; and
  4. Commercial support services.

Under the COMPS Order, employers in all private-sector industries will be covered unless they're specifically exempted.

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