COMPS Order #36

COMPS Order #36
COMPS Order #36 Poster

The final ruling on COMPS Order #36 was adopted January 22, 2020, and takes effect March 16, 2020 (except for the overtime exemption threshold, which will go into effect July 1, 2020). Find the Order here. Highlighted changes:

Minimum Wage
Effective January 1, 2020, State minimum wage is $12 per hour. This means the tipped minimum wage is $8.98 per hour. (Note: Denver minimum wage is $12.85/hour and the tipped minimum wage is $9.83/hour.)

Overtime exemption threshold
Beginning July 1, 2020, employees must be paid a salary of AT LEAST $684 per week (which equates to $35,568 annually) to be EXEMPT from overtime. This is consistent with the Federal that went into effect January 1, 2020. Importantly, tips DO NOT count toward this total -- and hourly workers are never exempt from overtime. They must also meet the duties test for exempt employees to be exempt from overtime, which is not changing. Find the duties test here, and expected exempt salary increases below.

Date                                        Weekly Overtime-Exempt Salary
July 1, 2020                           $684.00/week ($35,568 per year)
January 1, 2021                     $778.85/week ($40,500 per year)
January 1, 2022                     $865.38/week (45,000 per year)
January 1, 2023                     $961.54/week ($50,000 per year)
January 1, 2024                     $1,057.69/week ($55,000 per year)
January 1, 2025                     The 2024 salary adjusted by CPI

Employees who work at least five consecutive hours are entitled to an uninterrupted and duty-free meal period of at least 30 minutes. The 30-minute meal break is uncompensated unless the employee is interrupted with something work-related before the full 30 minutes is up. If the employee is interrupted in the middle of the break, the employer must then pay them for that full 30-minute break. Employees must also be given a compensated 10-minute rest period for each 4 hours of work. If an employee doesn’t get a 10-minute break, you have to pay for that extra ten minutes — and backpay can add up quickly if you fail to do so. The only exception to the rest period rule is if on a given workday, or in writing covering up to a one year period that is signed by both parties, the employee and employer agree voluntarily and without coercion to have two 5 minute breaks. Rest breaks must be long enough for an employee to use the restroom or rest in the designated break room. Make sure your employees are not only getting their rest periods, but also acknowledging that they received them by either signing a statement before getting their paycheck or otherwise confirming this electronically.

Sample timeclock waiver language: I hereby verify that my time entries for the prior week(s) have been recorded accurately, and that I have been provided all meal and rest breaks to which I am entitled in accordance with state law and company policy.

Break signature page: click here.

If you require employees to wear a uniform (such as a logoed shirt), you must provide one free. This is a change from prior law, when you could take a 50 percent deposit on the uniform. This applies only to dress or equipment that an employee would not already reasonably own -- if part of your dress is something the employee would already own (e.g. black pants), then you do not need to provide it.

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