In the News

New Overtime Rule Finalized with Some Changes for Business Community

The Colorado Department of Labor and Employment (CDLE) adopted a new overtime and minimum pay rule this week after 10 months of receiving feedback from stakeholders, including the Colorado Chamber and other business groups. The Colorado Chamber raised significant concerns regarding the new burden it would pose on employers, however, the final version is a significant improvement from previous drafts of the proposed rule.

In November 2019, the Colorado Chamber submitted formal comments to CDLE on the previous version of the rule outlining specific concerns with the proposal, including the minimum salary threshold and implementation timeline. The Chamber recommended that CDLE consider lowering the exempt salary thresholds and shifting the implementation timeline so that businesses would have more time to adjust to the changes.

In response to feedback from the business community, CDLE lowered and slowed the salary phase-in. Originally, the rule would have set the minimum overtime exempt salary threshold at $42,500 starting this year. The updated rule instead sets the starting salary threshold at $35,568 for the rest of this year, which aligns with the current federal amount, then $40,500 in January 2021. It will gradually increase each year to reach $55,000 in 2024.

Click here to view the final rule.