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Proposed Changes to Colorado COMPS #39

Expected January 1, 2024, the Colorado Overtime and Minimum Pay Standards (COMPS) Order #39 takes effect. COMPS #39 is a regulation issued by the Colorado Department of Labor and Employment (CDLE) that sets the minimum wage and overtime pay requirements for employers in Colorado. COMPS #39 also establishes certain exemptions from the minimum wage and overtime requirements.

The proposed rule includes clarification of the “one-minute rule” for compensable work; changes to the overtime rules regarding tips and which workers may participate in a tip pool; and establishes new overtime exemptions for interstate carriers.

Other key changes include but are not limited to:

  • Updates to the definition of a tipped employee for whom an employer may claim a minimum wage tip credit from an employee who receives more than $30 a month in tips to an employee who receives more than $1.55 per hour in tips over a workweek;
  • Narrowing of employee eligibility for tip pools to include only those employees who perform significant customer-service functions in contact with patrons;
  • Providing those certain activities (or a combination of multiple activities consecutively) may be excluded from compensable working time if they are one minute or less and other conditions are met; and
  • Adding tips to the types of pay that may be excluded from the regular rate of pay when computing overtime.

Next Steps

Employers may need to make changes to their payroll practices and policies to comply with the proposed rule. For example, employers may need to start tracking the time that employees spend on individual tasks or activities to ensure that they are compensating employees for all work performed. Employers may also need to change their tip pool policies to ensure that only eligible employees are participating in tip pools.

HR Works, headquartered in Upstate New York, is a human resource management outsourcing and consulting firm serving clients throughout the United States for over thirty years. HR Works provides scalable strategic human resource management and consulting services, including: affirmative action programs; benefits administration outsourcing; HRIS self-service technology; full-time, part-time and interim on-site HR managers; HR audits; legally reviewed employee handbooks and supervisor manuals; talent management and recruiting services; and training of managers and HR professionals.