Colorado private sector employers, take note: The minimum salary that must be paid to an employee to maintain exemption from overtime is increasing as of January 1, 2023, to $961.54 per week, which equates to $50,000 per year. An employee paid less than this amount is classified as non-exempt and eligible for overtime pay.
The new amount is significantly higher than the federal minimum salary of $684 per week ($35,568 per year). The requirement is defined in the Colorado Overtime and Minimum Pay Standards Order (COMPS), which also defines statewide minimum wages for non-exempt employees. Changes to minimum wages in various states for 2023 are described in this article.
State, federal, and municipal government employers and their corresponding political subdivisions are exempt from COMPS. Some states do not have a state-defined salary level for exemption, including Arizona, Idaho, New Mexico, Utah, and Wyoming.
For more information, this whitepaper provides guidance. Contact us for additional assistance.
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