In January of 2020, the Colorado Department of Labor Standards and Statistics adopted the Colorado Overtime and Minimum Pay Standards Order (COMPS Order) #36, which replaces Colorado Minimum Wage Order #35.
Most of the COMPS Order went in to effect on March 16, 2020, with some significant changes from the Wage Order #35. One major change is that the COMPS Order applies to all employers in Colorado, excluding public sector employers.
Another significant change that will go into effect on July 1, 2020, is the salary basis rate will mirror the new federal salary basis of $684 a week. This equates to $35,568 annually. This 2020 salary does not apply to non-profit employers with annual total gross revenue of under $50 million, and for-profit employers with annual total gross revenue of under $1 million. For those employers, the salary schedule applies as of January 1, 2021.
Beginning January 1 of each year, the weekly salary basis will increase as follows:
- $778.85 for 2021,
- $865.38 for 2022,
- $961.54 for 2023, and
- $1,057.69 for 2024,
- will be indexed every subsequent January 1 by the same Consumer Price Index as the Colorado minimum wage.
Employers should implement changes to align with the federal changes to the salary basis test. These changes will also ensure compliance with Colorado requirements as well. Employers should also begin planning for the increase in January of 2021.
Employers Council Resources:
- We have updated the applicable handbook samples in our Employee Handbook Planning Guide.
- We have updated several FYIs in our FYI’s, Laws, and Links
- There is a new FYI with a COMPS Order acknowledgment form here.
- There is a new COMPS checklist here.
- The sample Employee Handbook for Colorado is here.
- A sample break waiver form is here.
Employers Council attorneys and human resources staff are here to help members navigate these changes; please call us with questions.