Colorado Overtime Laws 2026: Daily 12-Hour Rule & COMPS Order

Colorado Overtime Pay Rules in 2026

Colorado has one of the most generous overtime laws in the country. Under the Colorado Overtime and Minimum Pay Standards (COMPS) Order, non-exempt workers earn time and a half whenever they hit any of three thresholds — whichever comes first.

The Three Colorado Overtime Triggers

Under COMPS Order Rule 4, you earn 1.5× the regular rate after:

• . 40 hours in a workweek, OR
• . 12 hours in a workday, OR
• . 12 consecutive hours, regardless of when the workday starts.

You only get paid OT for one of these (the one that produces the most hours), not all three stacked.

Colorado Minimum Wage in 2026

Effective January 1, 2026, Colorado's statewide minimum wage is $14.81/hour (CPI-adjusted from $14.42 in 2025). Tipped workers earn $11.79/hour cash wage with a maximum $3.02 tip credit.

City rates are higher:

• Denver: $18.81/hour (tipped: $15.79)
• Edgewater: $16.52/hour
• Boulder County: $16.57/hour (unincorporated areas)

Overtime is always calculated on the actual regular rate of pay — not the minimum.

How to Calculate Colorado Overtime

Example 1 — Daily OT — A Denver line cook works one 14-hour shift at $20/hour:

• Regular: 12 × $20 = $240
• Daily OT: 2 × $30 = $60
• Total for that shift: $300

Example 2 — Weekly OT — A Fort Collins warehouse worker logs 45 hours across five 9-hour shifts at $22/hour:

• No daily/consecutive OT (each shift under 12 hours)
• Regular: 40 × $22 = $880
• Weekly OT: 5 × $33 = $165
• Total: $1,045

Our Colorado Overtime Pay Calculator applies all three COMPS Order triggers and picks the highest payout automatically.

Who Is Exempt from Colorado Overtime?

Colorado has its own salary threshold, separate from federal FLSA:

• 2026 Colorado white-collar threshold: $1,180.77/week ($61,400/year) — significantly higher than the federal $684/week.
• Workers earning between $684 and $1,180.77/week may be federal-exempt but still Colorado non-exempt and entitled to OT.

COMPS Order also exempts:

• Highly technical computer professionals at $35.10/hour (2026)
• Outside salespersons
• Owners of 20%+ equity who are actively engaged in management
• Certain commissioned retail/service workers (federal 7(i) test)
• Agricultural workers (modified rules under SB21-087)
• Specific narrow categories (taxi drivers, ski instructors, in-residence workers)

Colorado Wage Theft Penalties

Under SB22-161 (effective 2023), Colorado employers face:

• Owed wages + automatic liquidated damages of 2× the unpaid amount
• $50/day per employee penalty for failure to pay after demand
• Treble damages possible for willful violations
• Personal liability for owners and managers

How to File a Colorado Overtime Claim

You have 3 years (or 2 years for non-willful) to file. Options:

• . File a complaint with Colorado Division of Labor Standards and Statistics
• . Submit a wage demand letter (triggers the 14-day clock for the $50/day penalty)
• . File suit in Colorado district court

Frequently Asked Questions

Does Colorado really require overtime after 12 hours in a day?

Yes. Even if you only work one day in the entire week, you're owed time and a half for every hour past 12 on that day.

What's the difference between "12 hours in a workday" and "12 consecutive hours"?

Workday is the employer's defined 24-hour period. Consecutive hours covers shifts that cross the workday boundary. The 12-consecutive rule prevents employers from gaming the workday clock to dodge OT.

Is the Colorado salary threshold really $61,400 in 2026?

Yes. Colorado COMPS Order #40 sets a state-specific threshold that's roughly 1.7× the federal level. A "salaried manager" in Colorado earning $55,000 is still non-exempt and owed overtime.

Does the federal No Tax on Overtime deduction apply in Colorado?

Yes, for federal taxes (up to $12,500 single / $25,000 joint, 2025–2028). Colorado state income tax (4.40% flat) still applies to the full overtime amount.