The Colorado Department of Labor and Employment (CDLE) adopted its final rules for the Colorado Overtime & Minimum Pay Standards (COMPS), formerly named the Minimum Wage Order, on Wednesday. As the department considered updates to COMPS, the Chamber met with CDLE team members, submitted two rounds of public comment and shared concerns with the House Business Affairs and Labor Committee. COMPS covers overtime pay, exempt employee status and meal and break times. Colorado has always followed the federal standards for these requirements. On Jan. 1, the federal threshold increased to $35,568, meaning, generally, that those employees paid less than that amount must receive overtime pay for working over 40 hours in one week.
The new state rules keep the wage threshold at its current federal level this year. The Chamber was successful in advocating for this delay in increasing the overtime threshold, which was initially proposed to increase to $42,000 in July 2020. It now requires an increase to $40,500 in 2021 and increases by $4,500 in 2022 and then $5,000 every year after that until it reaches $55,000 in 2024, after which it will be adjusted by the same consumer price index as the Colorado minimum wage.
We remain concerned that the steep increases will be difficult for businesses, especially in rural Colorado, to balance and may negatively impact opportunities for employees.
“This can really negatively impact workers, not just employers,” Chamber President and CEO Kelly Brough told The Colorado Sun. “That did not feel thoughtful, from our perspective.”
The rule goes into effect on March 16, 2020.
Ballot Titles Filed for Paid Family Leave
On Tuesday, proponents of paid family and medical leave filed two measures with the Colorado Legislative Council, beginning an effort to put an initiative on the November ballot should a paid leave policy not pass this legislative session. As you’ll recall, the paid leave proposal was a top priority for the Chamber last session, with strong efforts made to oppose a state-run mandate. That legislation was amended into a study, creating a task force that crafted recommendations on what a program should look like. Earlier this month we shared with you what those recommendations are and our position. It’s now up to legislators to craft the legislation, but no draft has been released yet.
“While we strongly support employers providing paid leave, a $2 billion tax increase to fund a state startup is the most inefficient, risky and ineffective way to do it. A state-run program that mandates a one-size-fits-all approach for our smallest businesses up to our largest corporations isn’t the answer. It’s shocking that we’re discussing a government expansion of this size when our state isn’t delivering on the current things we’ve been promised, like safe roads and bridges and schools that can afford to operate five days a week,” said Chamber President and CEO Kelly Brough. “We will continue to work with legislators to develop a solution that ensures more Coloradans have access to leave, but in a manner that assures it’s there when they need it most.”
Read more coverage of this issue in the Denver Business Journal, The Denver Post, Colorado Public Radio and Fox 31.
Notifications for Rule-Making
This week, the Chamber supported House Bill 1039, a bipartisan effort to make it easier for businesses to become aware of rule-making proceedings being conducted by state agencies. The bill requires agencies that are or will be conducting rule-making proceedings to post notifications on a rule-making transparency website and mobile app that will be created and hosted by the state. While most of our updates during the legislative session are on legislation affecting the business community, rule-makings often have just as big of an impact on businesses. We applaud the efforts of bill sponsors, who are proactively tackling an issue that will help our businesses understand changes that are coming and get involved in the process.
As always, Chamber staff will continue working on your behalf, analyzing and weighing in on legislation that can impact your business. We list all our bill positions online. Stay in touch with us by checking our website and sharing with us your concerns as the session progresses.