Overview
Employees in Colorado are entitled to overtime pay at a rate of 1.5 times their regular hourly wage for hours worked exceeding:
- 40 hours per workweek
- 12 hours per workday, or
- 12 consecutive hours regardless of the workday’s start and end times
This means that if an employee works more than 40 hours in a week, more than 12 hours in a single day, or 12 consecutive hours across two days, they should receive overtime pay for whichever calculation results in the highest number of OT hours worked.
Note: Customers are responsible for partnering with their representative at TrackTik to ensure that this payroll is configured as per the regulations in Colorado. Once configured, the customer is also responsible for ensuring that these rules are correctly assigned to eligible employees and that payroll calculations are correct.
How is overtime calculated?
The system verifies the previous week to determine consecutive overtime hours. These hours are based on the time between the first clock-in and the last clock-out. Consecutive hours can occur in a single shift or across back-to-back shifts, and meal breaks are excluded from the calculation. A grace period allows you greater flexibility in defining consecutive hours.
Calculation method for Colorado overtime
- The system compares daily hours, shift overtime (including consecutive hours of overtime), and weekly overtime.
- The system selects the calculation that gives the employee the highest payment.
Conclusion
Ensure that overtime is calculated properly for Colorado employees by contacting our team to have it configured.