The Colorado Department of Labor and Employment (CDLE) has adopted the Colorado Overtime and Minimum Pay Standards (COMPS) Order #38 and new Wage Protection Rules as well as the 2022 Publication and Yearly Calculation of Adjusted Labor Compensation (PAY CALC) Order, which became effective January 1, 2022. Below is a summary of notable changes in the new rules.

• Overtime Regular Rate Calculation for an Employee Working Two or More Non-exempt Jobs: The regular rate for an employee working more than one non-exempt job at different hourly rates is now calculated according to either a weighted average based on adding together all the wages earned while performing each job divided by the number of hours worked in those jobs, or as a rate based on the job “actually performed during overtime hours.” In addition, when there is no previous agreement about regular rate for employees in the position, the regular rate is calculated using the weighted average method.
• Highly Compensated Employees and Other Exemptions: The COMPS Order includes a new exemption from the minimum wage and overtime rules for highly compensated employees. The exemption applies to employees who meet three criteria. First, the employee’s annual wage must be, at least weekly, the weekly salary for white-collar exempt employees as provided in the 2022 PAY CALC Order and, annually, at least 2.25 times the rounded annual salary for the white-collar exempt employees established in the 2022 PAY CALC Order. Second,...

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