Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney. In an abundance of caution, employers can ensure compliance by providing a copy of COMPS Order 36 or Poster to everyone in their current workforce on or about March 16, 2020 and obtaining a signed acknowledgment. If any part (including any section, sentence, clause, phrase, word, or number) is held invalid, (A) the remainder of the COMPS Order remains valid, and (B) if the provision is held not wholly invalid, but merely in need of narrowing, the provision should be retained in narrowed form. It also required that . Employers should note that salaried exempt employees must still be paid Colorado minimum wage for all hours worked. 201, 3.2 Minimum and Overtime Wage Requirements of Other Applicable Jurisdictions. 5.1 Meal Periods. as either: (A) enrolled students receiving credit for an unpaid work-study program or internship; or (B) bona fide volunteers for non-profit organizations. These exemption definitions are the same as in prior Minimum Wage Orders, but now apply across the private sector, not just to the four previously covered industries. References to the Colorado Minimum Wage Order shall be deemed to reference the COMPS Order, as the successor to the Colorado Minimum Wage Order. 1.2 Incorporation by reference. Additional exemptions under Rule 2.2 exist for qualifying owners and proprietors, interstate transportation workers and taxi cab drivers, in-residence workers, range workers in jobs related to herding or production of livestock, field staff of seasonal camps or outdoor education programs, bona fide volunteers and work-study students, and elected officials and their staff. Simply choose your state, look for a form, and download a state-specific template. Read the code on FindLaw 6.2.3 Tip Credit. The Statement of Basis, Purpose, Authority, and Findings accompanying the spring 2020 modifications explains the modifications considered and adopted at that time. 2.2.9 Elected officials and their staff. The effective date of COMPS Order # 36 is March 16, 2020. National: 3.5%, Colorado Job Growth (SA) Title 8, Articles 1, 4, and 6. Rule 1.8 of COMPS Order 36 sets forth which items are included in the calculation of an employees regular rate of pay, as well as how to calculate the regular rate for those employees who are paid a weekly salary or on some other non-hourly basis. (B) No minimum claim size. 6.2 Credits Toward Minimum Wages. For the purpose of the COMPS Order, relevant factors in determining whether a person is an employee include the degree of control the employer may or does exercise over the person and the degree to which the person performs work that is the primary work of the employer; except that an individual primarily free from control and direction in the performance of the service, both under his or her contract for the performance of service and in fact, and who is customarily engaged in an independent trade, occupation, profession, or business related to the service performed is not an employee.1. Critically, if an employee voluntarily chooses to work during his or her rest period, additional pay is not required. 2.2 Exemption from all except Rules 1, 2, and 8. ; 20 C.F.R. Rule 5.2 of COMPS Order 36 clarifies prior Minimum Wage Order language that required rest periods for each four hours of work or major fraction thereof. COMPS Order 36 makes clear that a major fraction means two hours. As noted in a previous post, Colorado proposed a new wage order in 2019. <> 6.3.1 Where wearing a particular uniform or special apparel is a condition of employment, the employer shall pay the cost of purchases, maintenance, and cleaning of the uniforms or special apparel, with the following exceptions: (A) if the uniform furnished by the employer is plain and washable, and does not need or require special care such as ironing, dry cleaning, pressing, etc., the employer need not maintain or pay for cleaning; and. $10.63 / Hour for tipped employees, Colorado Department of Labor and Employment, 633 17th Street, Suite 201 2.1 Scope of coverage. This acknowledgment should be included when issuing or updating a handbook, but employers aren't required to reissue the handbook merely to update the COMPS . Compliance would include reviewing your compensation structure, pay grades, performance, hiring practices, and market benchmarking to start. Prior Wage Orders covered only four industries: Retail/Service, Food/Beverage, Health/Medical, and Commercial Support Service. Learn More or Request a Demo. (A) A weekly salary or other non-hourly pay may be paid as straight time pay for all work hours, and the regular rate each workweek will be the total paid divided by hours worked, if the parties have a clear mutual understanding that the salary is: (1) compensation (apart from any overtime premium) for all hours each workweek; (2) at least the applicable minimum wage for all hours in workweeks with the greatest hours; (3) supplemented by extra pay for all overtime hours (in addition to the salary that covers the regular rate) of an extra 12 of the regular rate; and. (B) taxi cab drivers employed by a taxi service provider licensed by a state or local government. The Division adopted the new Colorado Overtime and Minimum Pay Standards Order (the "COMPS Order"), which becomes effective on March 16, 2020; instead of just updating the Colorado Minimum Wage Order (the "Wage Order") to have the increased minimum wage for 2020, as it had done in past years. 1.8.2 Regular rate for employees paid a weekly salary or other non-hourly basis. For example, if an employee is called back to work seven minutes into his or her rest period, the employer owes 10 extra minutes of pay, not just seven. Littler Investigation Toolkit for Employers, Littler Inclusion, Equity and Diversity Playbook, Colorado Overtime and Minimum Pay Standards Order Number 36. Effective January 1, 2020, under the minimum wage requirements of Article XVIII, Section 15, of the Colorado Constitution, all employees (with the exceptions detailed in Rule 3.3), whether employed on an hourly, piecework, commission, time, task, or other basis, shall be paid not less than $12.00 per hour, less any applicable lawful credits or exceptions noted, for all hours worked, if the employee is covered by either: (A) Rule 2 (Coverage and Exemptions) of the COMPS Order; or, (B) the minimum wage provisions of the federal Fair Labor Standards Act (29 U.S.C. Bid on Auction Property 11681 E Colorado Dr, Aurora, CO, 80012, USA for free! While COMPS Order 36 does not contemplate monetary penalties for failure to comply with the posting requirements, it provides that failure to comply may result in ineligibility for employee-specific credits, deductions, or exemptions. This exemption covers an employee paid a salary, or hourly compensation, in accord with Rule 2.5, who: (A) is a skilled worker employed as a computer systems analyst, computer programmer, software engineer, or other similarly highly technical computer employee; (B) who has knowledge of an advanced type, customarily acquired by a prolonged course of specialized formal or informal study; and, (C) spends a minimum of 50% of the workweek in any combination of the following duties . (3) the design, documentation, testing, creation, or modification of computer programs related to machine operating systems. The minimum wage can be reduced by up to 15%, even if federal law permits lower wages, for non-emancipated minors and for persons certified by the Division as less efficient due to physical disability. COMPS Order #38, effective January 1, 2022 remains in effect for 2023 The 2023 Publication And Yearly Calculation of Adjusted Labor Compensation (2023 PAY CALC) Order, which publishes values that adjust periodically under the COMPS Order, is also effective as of January 1, 2023. This exemption covers a salaried employee, paid at least the applicable salary in Rule 2.5, who supervises the work of at least two full-time employees and has the authority to hire and fire, or to effectively recommend such action. Already an XpertHR user? Part 541 Subpart G, apply, except that under the COMPS Order, the salary must be at least the level listed below and sufficient for the minimum wage for all hours in a workweek (with the exception of certain professionals listed in Rule 2.5.2). A lodging credit for housing furnished by the employer and used by the employee may be considered part of the minimum wage if it is: (A) no greater than the smaller of (1) the reasonable and actual cost to the employer of providing the housing, (2) the fair market value of the housing, or (3) $25 per week for a room (in a shared residence, dormitory, or hotel) or $100 per week for a private residence (an apartment or a house); (B) accepted voluntarily and without coercion, and primarily for the benefit This exemption covers those who need not be compensated under the federal Fair Labor Standards Act (29 U.S.C. An itemized earnings statement of the information in Rule 7.1 shall be provided to each employee each pay period. If you have any questions about this article, you can contact Michael by, Fill Out the Form Below for a Free Case Review to See If You Have a Claim. Every employer that requires employees to sign any handbook, manual, or policy shall, at the same time or promptly thereafter, include a copy of the COMPS Order, or a COMPS Order poster published by the Division, and have the employee sign an acknowledgement of being provided the COMPS Order or the COMPS Order poster. Transportation Worker Exemption A new rule in COMPS Order #37 (Rule 2.4.6) provides that . Every employer publishing or distributing to employees any handbook, manual, or written or posted policies shall include a copy of the COMPS Order, or a COMPS Order poster published by the Division, with any such handbook, manual, or policies. 8-4-103(4). These documents come in many shapes and functions as well, and the variations of these papers and documents are listed below: Certificates: Certificates are somewhat like acknowledgement forms as they validate a person's achievement or participation in an event. 8-6-116). Exemptions from COMPS Order 36 and Increased Salary Thresholds. Rule 8 Administration and Interpretation. % Notably, the July 1, 2020 salary threshold is the same threshold that already went into place on January 1, 2020 under the FLSA, so most Colorado employers will not need to make any salary adjustments until January 1, 2021. (B) intentionally pays or causes to be paid to any such employee a wage less than the minimum (C.R.S. It is unlawful to employ workers in any occupation under conditions of labor detrimental to their health or morals.); 8-6-105 (It is the duty of the director to inquire into the wages paid to employees and into the conditions of labor in any occupation if the director has reason to believe conditions of labor are detrimental to the health or morals of said employees or that the wages paid to a substantial number of employees are inadequate to supply the necessary cost of living and tomaintain such employees in health.); 8-6-106 (The director shall determine the minimum wages sufficient for living wages ; standards of conditions of labor and hours not detrimental to health or morals for workers; and what are unreasonably long hours.); 8-6-108 ([F]or the purpose of investigating any of the matters [s/]he is authorized to investigate by this article [t]he director has power to make reasonable and proper rules and procedure and to enforce said rules and procedure.); 8-6-109 (If after investigation the director is of the opinion that the conditions of employment surrounding said employees are detrimental to the health or morals or that a substantial number of workers in any occupation are receiving wages inadequate to supply the necessary costs of living and to maintain the workers in health, the director shall proceed to establish minimum wage rates.); 8-6-111 (Overtime, at a rate of one and one-half times the regular rate of pay, may be permitted by the director under conditions and rules and for increased minimum wages which the director. The proposed COMPS Order clarifies that, "to the extent practical," rest periods shall be provided in the middle of each four-hour work period. The only allowable credits an employer may take toward the minimum wage are those in Rules 6.2.1 6.2.3 below. The following are exempt from the COMPS Order except Rules 1 (Authority and . endobj It renames the regularly-issued Minimum Wage Order to reflect that this order covers not only minimum wages, but also overtime and other related wage and hour standards. This exemption covers: (A) an employee who is a driver, a drivers helper, or a loader or mechanic of a motor carrier, if the employee crosses state lines in the course of his or her work; and. 7.2 Issuance of Earnings Statement. The employee must spend a minimum of 80% of the workweek in activities directly related to his or her own outside sales. COMPS Order Adopted On January 22, 2020, the Colorado Department of Labor and Employment (CDLE) adopted its "COMPS" Order, which replaces what has previously been known as the Colorado. The Executive Order also permits the notarization performed by aFor example, every county in Colorado . The employee must spend a minimum of 50% of the workweek in duties directly related to supervision. 2023 The Lore Law Firm | Attorney Advertisement |, Colorado Overtime and Minimum Pay Standards Order (COMPS Order) #36, Website Design by Omnizant - View site in new window. Tips include amounts designated as a tip by credit card customers on their charge slips. 8.6 Division and Dual Jurisdiction. Use of the service is subject to our terms and conditions. To the extent practical, rest periods should fall in the middle of each four-hour work period. As noted in the previous post, COMPS order #36 is radical overhaul of Colorado's prior wage orders. 5 This salary requirement of minimum wage for all hours work applied under Minimum Wage Order #35 (2019) and prior Minimum Wage Orders. Higher education is exemptfrom these state mandated furloughs. The Division of Labor Standards and Statistics (Division) has taken the position that a full additional 10 minutes of pay is required even if the employee takes a shortened rest period. (5) "Maker" means a person who signs or is identified in a note as a . COMPS Order 36 provides that an employer may not reduce wages for a meal, unless the employee accepts the meal voluntarily and without being coerced. 8-4-101, et seq. On January 22, 2020, the Colorado Department of Labor adopted the Colorado Overtime and Minimum Pay Standards Order #36 ("COMPS Order"), with most of its provisions becoming effective on March 16, 2020. Re-send Confirmation Email. The professional employee must be employed in the field in which s/he was trained. 1.12 Workday means any consecutive 24-hour period starting with the same hour each day and the same hour as the beginning of the workweek. Employees of the medical transportation industry who work 24- hour shifts are exempt from the Rule 4.1.1(B)-(C) daily (12-hour) overtime rules if they receive the required Rule 4.1.1(A) weekly (40-hour) overtime pay. As previously discussed, Colorado officially adopted the Colorado Overtime and Minimum Pay Standards Order # 36 ("COMPS Order") on January 22, 2020, which went into effect on March 16, 2020. COMPS Order #36 took effect March 16, 2020, with three narrow modifications based on developments since the original January adoption of COMPS Order #36, yielding the current version of COMPS posted above. Billing/Credit Card Authorization. On a go-forward basis, employees should be required to acknowledge COMPS Order 36 or the Poster (which may be part of the handbook) at hire. 655.210, 655.1304; 29 C.F.R. In order to be exempt from overtime requirements, Colorado employees must now meet a rising minimum salary threshold that exceeds the federal threshold: $40,500 on Jan. 1, 2021 $45,000 on Jan. 1, 2022 $50,000 on Jan. 1, 2023 $55,000 on Jan. 1, 2024 They can be accessed electronically from the website of the Colorado Secretary of State. 2.2.5 Owners or proprietors. 1.11 Wages or compensation has the meaning provided by C.R.S. (B) Where the requirements of (1)-(4) are not carried out, there is not the required clear mutual understanding that the non-hourly pay provides the regular rate for all hours with extra pay added for overtime hours. Rule 6. 2.4.5 Eight and Eighty Rule. (B) Employees in highly technical computer-related occupations, as defined by Rule 2.2.10, must receive at least the lesser of (1) the applicable salary in Rule 2.5.1, or (2) hourly pay that is at least $27.63 in 2020, adjusted annually by CPI thereafter. (F) Field staff of seasonal camps or seasonal outdoor education programs who primarily provide supervision or education of minors, or education of adults; are required to reside on-premises; are provided adequate lodging and all meals free of charge and without deduction from wages; and as of January 1, 2021, are paid the amount required by subpart (1) below (with no minimum pay required before January 1, 2021). We will be carefully monitoring the states interpretation and enforcement of these new legal requirements leading up to the effective date of COMPS Order 36 on March 16, 2020 and thereafter. Alternatively, an employee may elect to pursue a complaint through the Divisions administrative procedure as described in the Colorado Wage Act, C.R.S. Employees shall be permitted to fully consume a meal of choice on the job and be fully compensated for the on-duty meal period without any loss of time or compensation. Executive Order On Mandatory Furloughs On Tuesday, Sept. 22 the State of Colorado announced an Executive Order from the Governormandating furlough days for state employees making more than $50,000 per year. Whenever employers are subjected to Colorado law as well as federal and/or local law, the law providing greater protection or setting the higher standard shall apply. When an employees shift is less than 24 hours, periods when s/he is permitted to sleep are compensable work time, as long as s/he is on duty and must work when required. Sales employees of retail or service industries paid on a commission basis, provided that at least 50% of their total earnings in the pay period is derived from commission sales, and their regular rate of pay is at least one and one-half times the minimum wage, are exempt from Rule 4 (Overtime). For federal workplace posters, contact the U.S. Department of Labor. Violations may be subject to the administrative procedure as described in the Colorado Wage Act, C.R.S. Employers must also make a copy of COMPS Order 36 or Poster available upon any employees request. Changes to COMPS Order #36 and Leniency by the Colorado Division of Labor. COMPS Order 36 has adopted these broadened definitions. Under COMPS Order 36, employers are no longer allowed to require a security deposit for a required uniform. For new hires, distribution must be made within the first month of employment. 2.2.7 In-residence workers. COMPS Order36 sets forth detailed criteria for each of these exemptions. 1u5h.JU}6e! There is no minimum size of a wage claim, and thus no claim too minimal (de minimis) for recovery, because Article 4 requires paying [a]ll wages or compensation (C.R.S. Employers with any employees with limited English language ability shall: (A) use a Spanish-language version of the COMPS Order and poster published by the Division, if the employee(s) in question speak Spanish; or. Although employers must understand and adapt to all aspects of the new legal framework brought about by the Colorado Department of Labor and Employment's new Colorado Overtime and Minimum Pay Standards Order #36 (COMPS Order), you should ensure you pay attention to the COMPS Order's significant new posting, distribution, and translation <> (B) for a non-profit employer, is the highest-ranked and highest-paid employee, and is paid at least the salary threshold in Rule 2.5. Under Colorado law, for shifts in excess of five hours, employees are entitled to an uninterrupted, duty-free, 30-minute meal period. 15 0 obj Colorado Comps, LLC will issue an invoice to the User containing applicable charges for a subscription, service, or product that require such payment. (1) Rule 2.2.7 (F) exemption requires that field staff be paid either (a) the applicable Colorado minimum wage for all hours worked, or (b) a salary (i) equivalent to at least 42 hours per week at 90% of the Colorado minimum wage (with the 15% reduction that Rule 3.3 permits for unemancipated minors), (ii) reduced 25% for non-profit employers View our privacy policy, privacy policy (California), cookie policy, supported browsers and access your cookie settings. Employees must be completely relieved of all duties and permitted to pursue personal activities, including by leaving the premises if desired. The COMPS order has left many unanswered questions. COMPS Order 36 also clarifies the meal credit requirement. Denver, CO 80202-3660 Additionally, COMPS Order 36 allows employers to take a credit towards minimum wage in several narrowly defined circumstances, including through a lodging credit, meal credit, or tip credit. 8-4-101(14) definition that the unpaid wages recoverable in a state-law claim include [a]ll amounts for labor or service performed by employees, as long as such amounts are earned, vested, and determinable, at which time such amount shall be payable to the employee pursuant to this article.. Acknowledgement of Occupant Rights - If Occupied. 201 et seq. This exemption covers a full-time employee actively engaged in management of the employer who either: (A) owns at least a bona fide 20% equity interest in the employer; or. (2) the design, development, documentation, analysis, creation, testing, or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications, or. If a local government has enacted a higher minimum wage a practice that has surged due to recent legislation in Colorado work covered by the local minimum wage ordinance must be paid at that higher wage. 8-4-101(5), means any person, including a migratory laborer, performing labor or services for the benefit of an employer. Significantly, if an employer distributes a handbook, a manual, or written or posted policies to employees, as many employers do, it must include a copy of COMPS Order 36 or Poster. 8-1-108 ([G]eneral orders shall be effective after they are adopted by the director and posted; All orders of the division shall be in force and prima facie reasonable and lawful until found otherwise.); 8-1-111 (The director is vested with the power and jurisdiction to have such supervision of every employment and place of employment [to] determine the conditions under which the employees labor , to enforce all provisions of law relating thereto to administer all provisions of this article with respect to the relations between employer and employee and to do all other acts and things convenient and necessary to accomplish the purposes of this article.); 8-1-130 (The director has full power to hear and determine all questions within his jurisdiction, and his findings, award, and order issued thereon shall be final agency action.); 8-4-111 (It is the duty of the director to enforce generally the provisions of this article.); 8-6-102 (Whenever this article or any part thereof is interpreted by any court, it shall be liberally construed.); 8-6-104 (It is unlawful to employ workers in any occupation for wages which are inadequate to supply the necessary cost of living and to maintain the health of the workers .