What are the rules for paying salary employees overtime?
In Colorado, employers must pay their salary employees overtime if they work more than forty hours in a single week. Any hours worked beyond forty must be paid at a rate of one and a half times the employee’s regular wage. For example, if an employee makes $15/hour and works 44 hours in one week, they must be paid one hour of overtime (at time and a half) for the four extra hours of work. Salary employees who are exempt from overtime rules include executive, administrative, and professional employees. To qualify for an exemption, the employee must be paid a salary at least $684 per week and perform specific job functions. Additionally, they must exercise independent judgement and discretion when making decisions. There are some exceptions to the overtime rule. For instance, some seasonal and recreational businesses can pay their employees on a commission, piece-rate, or other basis instead of time and a half. Additionally, employees in certain agricultural positions may not be owed overtime unless they work more than ten hours in one day. In general, it is important for employers to follow wage and hour laws in order to ensure that their employees receive fair and legal pay for all hours worked. Failing to pay overtime to salary employees is a violation of the law in Colorado, and can result in hefty fines for employers.
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