What is considered an exempt employee?

An exempt employee is an employee who is not subject to the overtime pay requirements of Colorado wage and hour laws. This means that an employee who is classified as exempt will not receive overtime pay for hours worked beyond regular pay, regardless of the number of hours worked each week. In Colorado, to be classified as exempt, an employee must meet both a salary level and a duties test. The salary level for exempt employees in Colorado is $684 per week. This means that an employee must be paid at least this amount each week in order to be considered exempt. The duties test in Colorado requires that exempt employees must perform duties that involve executive, administrative, or professional work. For an employee to be exempt under the executive test, they must be responsible for managing the entire organization or a recognized department or subdivision, must customarily and regularly direct the work of at least two or more other employees, and must have the authority to hire or fire other employees. To be exempt under the administrative test, the employee must be responsible for either nonmanual or office work directly related to the management or general business operations of the employer or of the employer’s customers, and must exercise discretion and independent judgment in carrying out their duties. For an employee to be considered exempt under the professional test, the employee must have knowledge gained through specialized education or training and must perform duties requiring the use of this knowledge. This can include doctors, lawyers, teachers, registered nurses, certified public accountants, and other similar professions.

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What is considered an exempt employee?

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