Colorado’s Proposed Overtime Laws for July 2020
Posted by: Emma Berdanier on December 3rd, 2019
On Nov. 18, 2019, Governor Jared Polis proposed a bill that would increase – beyond federal statutes – the standard salary level requiring overtime pay in Colorado. These laws would see hundreds of thousands more Colorado workers qualifying for overtime. If enacted, the bill would go even further than the federal overtime law changes set for Jan. 1, 2020, which raises the standard salary level to $35,568 per year for a Full-Time Employee ($684 per week), up from the previous $23,660 ($455 per week).
The New Proposed Colorado Overtime Law
This proposed change, if passed, is set to take effect on July 1, 2020. After that, changes to the law would go into effect each year. These changes are as outlined below:
- July 1, 2020 – minimum exempt salary would rise to $42,500
- Each year following – minimum exempt salary would rise $3,000
- 2026 – minimum exempt salary would reach $57,500
- Following 2026 – minimum exempt salary would increase according to the Consumer Price Index. (The same one that will determine raises to the state’s minimum wage.)
The proposed bill also expands the number of industries covered by overtime protections. Currently, the law in Colorado only applies overtime laws to those working in select industries. These industries are retail/service, food/beverage, commercial support, and health/medical. The new law would expand protections to fields from construction to professional services.
Of course, these changes will only take effect if the bill passes. The Colorado Legislature is set to debate the law at the beginning of January 2020. At this same time, the legislature will also debate a separate plan for paid family and medical leave.
Let Your Voice Be Heard
As this bill is still in its early stages, it’s important – for both employers and workers – to voice your opinion now. Contact your local representative and let them know your thoughts. Changes to employment laws affect everyone, so be sure to let your voice be heard!
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