Colorado Overtime laws

  Colorado has established robust overtime laws that go beyond federal standards, offering greater protection to workers. Understanding these state-specific regulations is crucial for both employers and employees.

 

Key Features of Colorado Overtime Law:

  • Overtime Thresholds: Colorado requires overtime pay for hours worked over 40 in a workweek and for any hours worked beyond 12 in a single day, providing more frequent overtime opportunities than federal law.

 

  • Overtime Rate: Overtime is calculated at 1.5 times the regular rate of pay for hours exceeding these thresholds.

 

  • Enforcement: The Colorado Department of Labor actively enforces these overtime provisions, ensuring compliance by employers.

Minimum Wage in Colorado

  Colorado’s minimum wage is higher than the federal minimum wage. As of January 1, 2024, it is $14.42 per hour for non-tipped employees and $11.40 for tipped employees. These rates increased to $14.81 and $11.79 respectively on January 1, 2025. The state constitution mandates annual adjustments based on inflation.

Statute of Limitations

  The statute of limitations for unpaid overtime claims in Colorado is 2 years under the Colorado Minimum Wages of Workers Act. This can be extended to 3 years for willful violations, similar to federal law.

Damages for unpaid overtime

Colorado employees can typically recover the following damages:

                      • Unpaid overtime wages
                      • Liquidated (double) damages
                      • Attorneys’ fees

Class and Collective Actions

  Colorado law allows for class action lawsuits for overtime violations, often combined with collective actions under the FLSA. These “hybrid” lawsuits provide a powerful tool for employees to seek redress for unpaid overtime.