Colorado Overtime Laws for Hourly Employees (2026)

The rule

	Colorado
Weekly threshold	Over 40 hours in a workweek: 1.5 times the regular rate
Daily threshold	Over 12 hours in a workday: 1.5 times the regular rate. The workday is a fixed 24-hour period the employer sets
Consecutive hours	Over 12 consecutive hours, even when they cross two workdays: 1.5 times the regular rate. Only a meal period that meets the COMPS meal rules can be subtracted
Which rule applies	Whichever of the three calculations results in more pay (COMPS Order Rule 4.1.2). Hours in two or more workweeks cannot be averaged
Regular rate	All pay for work in the week (hourly pay, shift differentials, commissions, nondiscretionary bonuses) divided by hours worked. Required paid rest periods count as time worked
Exempt salary in 2026	Executive, administrative, and professional employees must meet the duties tests and earn a salary of at least $1,111.23 a week ($57,784 a year) under the 2026 PAY CALC Order
Other exemptions	Outside salespeople, salespeople and mechanics at vehicle dealers, certain commissioned retail sales staff, and partial exemptions for ski areas, medical transportation, and hospital or nursing home 8 and 80 schedules

Three tests, one answer

The Colorado Overtime and Minimum Pay Standards (COMPS) Order sets three overtime triggers: more than 40 hours in the workweek, more than 12 hours in the workday, and more than 12 consecutive hours no matter when the workday starts or ends. Run all three and pay whichever produces the most money. You do not add them together.

The workday is any 24-hour period that starts at the same hour each day, and the employer chooses it. That is why the consecutive hours test exists. A guard who works 4 p.m. to 6 a.m. splits the shift across two midnight-to-midnight workdays, 8 hours and 6 hours, so neither workday passes 12. The 14 straight hours still earn 2 hours of overtime. Only a meal period that meets the COMPS meal rule (30 minutes, uninterrupted, duty-free) can come out of the count. A paid on-duty meal is time worked and stays in.

No averaging, no comp time

The COMPS Order bars averaging hours across workweeks, so a 50-hour week has 10 overtime hours even if the next week is 30. The Division's INFO #1 guidance also says employers cannot give time off in place of time-and-a-half pay.

Salaried employees are not automatically exempt. A salaried employee who fails either the duties test or the 2026 salary level of $57,784 a year still earns overtime. Unless both sides clearly agree the salary covers all hours worked, the regular rate is the weekly salary divided by 40.

Worked example: a 20-person security company

The company uses a midnight-to-midnight workday. A guard paid $22 an hour works 8 hours Monday and Tuesday, covers an open post from 4:00 p.m. Wednesday to 6:00 a.m. Thursday with an on-duty meal, and works 8 hours Friday: 38 hours in the workweek.

Weekly test: 38 hours, so no weekly overtime.
Workday test: Wednesday has 8 hours and Thursday has 6, so no workday passes 12.
Consecutive hours test: 14 straight hours, and the paid on-duty meal is time worked, so 2 hours are overtime at $33 (1.5 times $22): $66. The other 36 hours are $792. Gross: $858, or $22 more than a payroll that only checks the week.
That 14-hour stretch also needs three paid 10-minute rest periods under the COMPS break rules.

How to track it

Two of Colorado's three overtime tests depend on each shift's start and end time, not the weekly total. The COMPS Order also requires a daily record of all hours worked for every employee, kept at least three years, so the punches themselves are the record.

ClockOut stores every punch with a timestamp, totals hours by the company's workweek, and warns managers when someone is projected to pass the overtime threshold. On Pro, you can set a daily overtime rule at 12 hours next to the weekly 40, for the whole company or for one work rule set. The daily rule counts hours by calendar date (or, on a rule set, by the 24 hours from the first clock-in), and ClockOut does not calculate Colorado's 12 consecutive hours test. When a shift crosses midnight or two shifts run back to back, check the stretch in the timesheet or payroll export (CSV, Gusto, ADP, QuickBooks), which show daily and weekly hours, and add any consecutive-hours overtime yourself.

Colorado overtime FAQ

Does Colorado have daily overtime?

Yes. Hours over 12 in a workday earn time and a half, and so do hours over 12 in a row even if they cross into the next workday. The weekly rule of 40 hours also applies, and the employee gets whichever calculation pays more.

What is Colorado's 12 consecutive hours rule?

Any stretch of more than 12 hours worked in a row earns time and a half for the hours past 12, regardless of where the employer's workday starts and ends. Only a meal period that is a real 30-minute, duty-free break can be subtracted from the stretch.

What salary does an exempt manager need in Colorado in 2026?

At least $1,111.23 a week, or $57,784 a year, under the 2026 PAY CALC Order, plus the duties test for an executive, administrative, or professional role. Being paid a salary alone is not enough.

Can I average two weeks or give comp time instead of overtime?

No. The COMPS Order says hours in two or more workweeks cannot be averaged, and the Division's guidance says time off cannot replace time-and-a-half pay.

Sources, checked September 23, 2026

This is general information, not legal advice. Rules change; check the linked source.