The Colorado Department of Labor and Employment drafted a policy change that would extend the number of employees subject to overtime regulations.
The Colorado Department of Labor and Employment released a draft policy change late last month that would extend overtime and break regulations to new classes of employees.
Under the proposed changes, salaried workers making less than $42,500 per year would receive overtime pay beginning in March 2020, with the threshold increasing by $,3000 annually to $57,500 in 2026. Currently, salaried workers are not paid overtime as long as their annual salary is equivalent to minimum wage.
“When labor costs increase, small businesses have to adjust,” said NFIB’s Colorado State Director Tony Gagliardi. “A lot of times that adjustment is made by reducing hours, not hiring, or slowing the hiring growth.”
NFIB expressed concerns with the draft rules.
A public hearing on the draft proposal is scheduled for December 16 and the deadline for comments is December 31. The final rules are scheduled to be issued on January 10, 2020.
