What Are Your Rights Under Wage and Hour Laws for Overtime Pay?
Understanding your rights under wage and hour laws is essential if you’re working overtime in Colorado. Whether you’re clocking in extra hours to meet deadlines or taking on double shifts, you deserve to be paid fairly for your time.
Both federal and Colorado state laws offer clear protections for workers — but these laws are often misunderstood or overlooked by employers and employees alike.
If you believe you’re being underpaid or your employer is misclassifying your work hours in Denver, Colorado, Anderson Barkley, LLC will help you understand your employment rights under Colorado’s wage and hour laws regarding overtime pay.
Federal and State Wage Laws
Wage and hour laws are governed by both federal and state law. The Fair Labor Standards Act (FLSA) is the federal law that sets minimum wage, overtime pay, and child labor standards. However, states can enact their own laws — and when they provide more generous benefits or stronger protections, state law takes precedence.
In Colorado, the Colorado Overtime and Minimum Pay Standards (COMPS) Order, administered by the Colorado Department of Labor and Employment (CDLE), governs wage and hour rules.
COMPS Order #38 is the most recent iteration as of 2025, and it outlines who qualifies for overtime, how it must be calculated, and which exemptions apply.
Who Is Entitled to Overtime Pay in Colorado?
In Colorado, according to Truein, most hourly (non-exempt) workers are entitled to overtime pay when they work:
More than 40 hours in a workweek, or
More than 12 hours in a workday, or
More than 12 consecutive hours, regardless of the start and end times of shifts.
If you meet any one of these criteria, your employer must pay you overtime — even if the others don’t apply.
What Is the Overtime Rate?
Additionally, under Colorado and federal employment law, the standard overtime rate is:
1.5 times your regular hourly rate, also known as "time-and-a-half."
For example, if you make $20 per hour, your overtime rate would be $30 per hour. You’re entitled to this higher rate for each qualifying overtime hour worked.
Exempt vs. Non-Exempt Employees
Furthermore, not every employee is eligible for overtime pay. The law distinguishes between non-exempt employees, who are entitled to overtime, and exempt employees, who are not.
Exempt Employees in Colorado May Include
Executive, administrative, and professional employees who meet specific duties tests and are paid on a salary basis
Outside sales employees
Certain computer professionals
Highly compensated employees (earning more than a set annual amount and meeting specific criteria)
However, exemptions are often misapplied. Employers may label someone as “exempt” simply because they’re salaried — but salary alone does not determine exemption. The employee must meet detailed job duty requirements as well.
If you’re a salaried worker and working overtime, you may still be entitled to overtime pay unless your job duties clearly fall under one of the legally defined exemptions.
What If You're Misclassified?
To add to that, misclassification is a common issue in wage and hour cases. If your employer incorrectly classifies you as an exempt employee or an independent contractor, you may be losing out on thousands of dollars in unpaid overtime.
You may be misclassified if:
You’re doing manual labor or routine tasks but paid on a salary
You don’t supervise other employees but are still labeled as "manager"
You're expected to be available around the clock without additional pay
You're paid a flat rate regardless of how many hours you work
Colorado law is strict about correct classification. Workers who’ve been misclassified can often recover back pay, interest, and even penalties.
What Counts as “Hours Worked”?
Understanding what qualifies as “work time” is essential for calculating overtime. In Colorado, “hours worked” includes not only time spent performing job duties but also:
Time spent on call (if your freedom is significantly restricted)
Training, meetings, or required seminars
Waiting time if you’re required to remain on-site or nearby
Travel time between job sites during the workday
Prep or cleanup work done before or after shifts (if required)
Meal breaks must be at least 30 minutes and uninterrupted to be unpaid. If your employer expects you to work through lunch — even occasionally — that time must be counted and compensated.
Do Colorado Employers Have to Pay Overtime for Unauthorized Hours?
Yes — in most cases, employers must pay for all hours worked, even if the overtime was not approved in advance. Employers can implement policies requiring overtime to be pre-approved, but they can’t refuse to pay for unauthorized overtime if the work was performed.
Instead, the employer’s remedy is disciplinary action — not withholding pay.
Can You Waive Your Right to Overtime?
No. Employees can’t legally waive their right to overtime. Even if you sign an agreement or contract stating you’ll accept regular pay for overtime hours, that agreement is unenforceable under both Colorado and federal law.
What Remedies Are Available if Your Rights Are Violated?
If your employer fails to pay you correctly for overtime hours, you may be able to recover:
Unpaid wages
Interest on unpaid wages
Statutory penalties
Attorney's fees and legal costs
Liquidated damages (equal to the unpaid amount, essentially doubling your recovery)
You can file a wage complaint with the Colorado Division of Labor Standards and Statistics, or pursue a civil lawsuit in court. Often, pursuing a claim with the help of an employment attorney leads to better and faster outcomes.
Time Limits: Don’t Wait Too Long
Wage claims are subject to strict statutes of limitations:
Under Colorado law, employees typically have 2 years to file a wage claim (3 years for willful violations).
Under federal law (FLSA), the limit is also 2 years, extended to 3 years for willful violations.
If you suspect you’ve been underpaid, it's important to speak with an attorney promptly to preserve your rights.
Special Protections for Tipped and Agricultural Workers
Colorado law also includes overtime protections for workers in traditionally underpaid sectors, such as:
Tipped employees (e.g., servers, bartenders): They’re entitled to the same overtime protections. Employers may claim a tip credit toward minimum wage, but overtime must still be calculated at 1.5x the regular hourly rate (not the reduced tip credit wage).
Agricultural workers: As of recent reforms in Colorado, many farm and ranch workers are now entitled to overtime pay — a significant change from past policies. The details depend on the size of the operation and the type of work, so legal guidance is often necessary in these cases.
When to Speak With an Employment Lawyer
If you believe your employer is:
Failing to pay overtime
Misclassifying your job role
Asking you to work “off the clock”
Retaliating after you raised a wage issue
…you may have a strong legal claim. A qualified Colorado wage and hour attorney can evaluate your case, gather the necessary documentation, and help you pursue compensation.
Many attorneys offer free consultations and handle wage cases on a contingency basis — meaning you pay nothing unless you win or settle.
Reach Out to Anderson Barkley, LLC
Overtime laws are designed to protect workers — but they’re only effective if workers know and assert their rights. In Colorado, you’re entitled to overtime pay for long workweeks, extended shifts, and consecutive work hours. Employers are obligated to follow the law, regardless of job title, industry, or internal company policy. Contact Anderson Barkley, LLC to learn more about employment law in Denver, Colorado.