Colorado Labor & Employment Law Developments ' A 2021 Year-In-Review

• Published date: 24 January 2022
• Subject Matter: Employment and HR, Discrimination, Disability & Sexual Harassment, Employee Benefits & Compensation
• Law Firm: Lewis Brisbois Bisgaard & Smith LLP
• Author: Ms Charlotte Johnston and Thalia S. Rofos

Denver, Colo. (January 20, 2022) - The past year brought numerous changes to Colorado's employment laws, including those governing the hiring process, wage and hour payments, and anti-discrimination protections. Lewis Brisbois' Labor & Employment team is here to help you keep track of these new and notable changes and ensure compliance of your business' operations. Below is a deeper dive into some of the bigger changes:

Minimum Wage

Effective January 1, 2022, the minimum wage in Colorado increased to $12.56, or $9.54 per hour for workers receiving enough in tips for their total pay to equal at least minimum wage. This minimum wage increase also applies to agricultural employees (except for range employees who must be paid a minimum weekly salary), as of June 2021's Agricultural Labor Rights and Responsibilities Act.

Additionally, agricultural employees may also now be eligible for overtime pay in certain circumstances starting November 1, 2022. As to daily overtime, agricultural employees will remain exempt if certain requirements are met. Specifically, for days over 12 hours, the third paid rest period must be 30 minutes long instead of the typical 10-minute paid rest period to allow time for extra rest, eating, and drinking. For days longer than 15 hours, agricultural employees must receive an extra payment of at least one hour of the Colorado minimum wage. With respect to weekly overtime, the rules include a phased-in approach over several years, with the first requirements taking effect Nov. 1, 2022. The weekly overtime requirements will depend on seasonality of the employer.

There are some discrete exceptions to the new minimum wage increase. Minimum wages may be reduced by 15% for unemancipated minors, and by deductions allowed by the wage deductions statute, C.R.S. ' 8-4-105. Furthermore, if a local government, or the federal government, has enacted a higher minimum wage than Colorado's, covered work must be compensated at that higher wage. For those within Denver city limits, the minimum wage has increased to $15.87 per hour, effective January 1, 2022 as well.

Colorado also has a new exemption from minimum wage and overtime rules for highly compensated employees (HCE). This same type of exemption can be found under the federal Fair Labor Standards Act, but Colorado's specifications are a little different. First, Colorado's HCE exemption is more strictly limited to white-collar employees. To fall under the new Colorado HCE exemption, an employee must be one "whose primary duty is office or non-manual work." Second, the salary requirements are higher than under the federal law. In 2022, the HCE exemption covers an employee who is paid at least $865.38 weekly, and $101,250 annually. The weekly and annual amounts will increase each...