Colorado · non-exempt salaried overtime
Colorado salaried overtime (COMPS Rule 1.8.2)
7 CCR 1103-1 COMPS Order #40 Rule 1.8.2 sets a dual-track regular rate for non-exempt weekly salary (and other non-hourly pay). With a clear mutual understanding that the salary covers all hours (and meets MW, is paid for whatever hours, and is topped up by ½× RR on OT) → RR = rem ÷ hours worked and OT premium at half-time. Otherwise RR = rem ÷ 40 and OT at full 1.5×. Overtime hours still use Rule 4.1.1 greater-of after 40/week, after 12/workday, or after 12 consecutive. Example: $1,000 / five 10h days → $1,375 (no mutual) or $1,100 (mutual). One 13h day → $1,037.50 here vs PA/HI weekly-40 $1,000. Not PA ÷40. Not HI 50% gate. Not CO hourly.
How COMPS Rule 1.8.2 pays
Rule 1.8.2(A): a weekly salary may be treated as straight-time pay for all work hours, with RR = total paid ÷ hours worked, only if the parties have a clear mutual understanding that the salary (1) compensates for all hours each workweek (apart from OT premium), (2) is at least the applicable minimum wage for all hours in the longest weeks, (3) is supplemented by an extra ½ of the regular rate for all overtime hours, and (4) is paid for whatever hours the employee works.
Rule 1.8.2(B): absent that understanding, the hourly regular rate is the applicable weekly pay divided by 40 — the hours presumed to be in a workweek for an employee paid no overtime premium — and overtime is paid at full 1.5× that RR.
Rule 4.1.1 still decides which hours are overtime: the greater of hours over 40 in the workweek, over 12 in a workday, or over 12 consecutive hours (no double-count). Rest 10-minute wages stay on /colorado-overtime/.
$1,000 salary · five 10h days · no mutual → RR $25 · 10 OT × $37.50 = $375 · total $1,375.
Same week · mutual understanding on → RR $20 · half-time $100 · total $1,100.
$1,000 · one 13h day · no mutual → RR $25 · 1 OT × $37.50 = $37.50 · total $1,037.50 (PA/HI weekly-40 → $1,000).
$1,000 · five 13h days · no mutual → 25 OT hours · total $1,937.50.
$1,000 + $200 commissions · 50h · no mutual → RR $30 · OT $450 · total $1,650.
Sources
- 7 CCR 1103-1 COMPS Order #40 (Colorado SOS CCR PDF) — Rules 1.8.2, 4.1.1, 4.1.5
- 7 CCR 1103-14 PAY CALC Order — 2026 Colorado MW $15.16
- CDLE Wage & Hour — Division of Labor Standards and Statistics hub
- CDLE INFO sheets — employer guidance companion to COMPS
FAQ
How is CO salaried OT calculated?
Unchecked mutual understanding → rem ÷ 40 + full 1.5× on Rule 4.1.1 OT hours. Checked → rem ÷ hours + half-time on those same OT hours, if Rule 1.8.2(A)(1)–(4) are met.
Same as Pennsylvania ÷40?
No. PA always ÷40 / always 1.5× / weekly-40 only. Colorado has a mutual half-time track and daily/consecutive-12 OT hours.
Same as Hawaii dual-track?
No. HI switches on a 50% salary+board share and is weekly-40 only. CO switches on clear mutual understanding and overlays COMPS 12/12/40 OT hours.
Same as /colorado-overtime/?
No. That page is typed hourly RR plus rest 10-minute wages. This page is Rule 1.8.2 salaried dual-track RR.
What is a “clear mutual understanding”?
Rule 1.8.2(A)(1)–(4): salary covers all hours, meets MW for longest weeks, is topped up by ½× RR on OT hours, and is paid for whatever hours are worked. If any element fails, use the ÷40 / full 1.5× track.
Who is covered?
Non-exempt employees paid a weekly salary or other non-hourly basis under COMPS. Exempt EAP / salary-threshold employees (Rule 2.5) are out of scope. Ski / ag carve-outs stay on their dedicated pages.