Inn-Flow Labor and Payroll applies Colorado's overtime rules under the Colorado Overtime and Minimum Pay Standards (COMPS) Order #38. Overtime is owed for more than 12 hours worked in a single workday and for more than 40 hours worked in a workweek, both paid at 1.5x the regular rate. Inn-Flow calculates every applicable scenario and automatically applies the outcome that is most favorable to the employee. Colorado does not use double time (2x).
This applies only to clients with the new Labor Calculation Engine enabled. Contact your Implementation Manager or CSM for more information on enablement. |
Inn-Flow only accounts for 12+ hours worked within a 24-hour calendar day (midnight to 11:59 PM) and does not currently support the 12+ consecutive-hour rule. |
Colorado Overtime Rules (COMPS Order #38)
Daily overtime: more than 12 hours in a single workday is paid at 1.5x the regular rate.
Weekly overtime: more than 40 hours in a workweek is paid at 1.5x the regular rate.
No double time: unlike California, Colorado does not use a 2x rate.
The following hours do not count toward daily or weekly overtime:
PTO
Paid holidays
Paid, non-working leave that does not qualify as "hours worked"
Regular Rate Calculation (Weighted Average)
Colorado always requires blended-rate overtime when an employee works more than one pay rate in a workweek. The blended regular rate is calculated as Total Straight-Time Earnings divided by Total Hours Worked, and all overtime is paid at that blended rate times 1.5. Unlike California, Colorado does not use double time and does not use the "rate in effect" method – the blended rate is always required.
How OT Hours Are Identified
Colorado daily overtime is determined in two steps:
Shift-level OT: if a single shift exceeds 12 hours, all hours beyond 12 are OT and are applied to that shift's date.
Daily-level OT: after shift-level OT is removed, combine all remaining hours worked on that date. If the total still exceeds 12, the hours beyond 12 are also OT, applied to the date where the limit was exceeded.
All daily OT hours are paid at the blended rate times 1.5 and are stored separately in the calculation engine for audit and payroll export.
Weekly Overtime
Weekly overtime applies only to regular hours beyond 40; hours already classified as daily OT do not count toward the 40-hour threshold. Weekly OT is paid at the blended rate times 1.5.
Worked Examples
Example 1 -- Single 13-hour shift. The shift exceeds 12 hours, so 1 hour is OT.
Date | Hours Worked | Breakdown |
10/14 | 13 | 12 Regular + 1 OT @ 1.5x |
Example 2 -- Two shifts on the same date. After shift-level evaluation, the date total exceeds 12, producing 2 OT hours.
Date | Shifts | Combined Total | OT |
10/15 | 8 hrs + 6 hrs | 14 hours | 2 OT |
Example 3 -- Weekly OT without daily OT. The employee works 9 hours each day, Monday through Friday, for 45 total hours. No single day exceeds 12 hours, so there is no daily OT. Weekly OT is 5 hours (45 minus 40) at the blended rate times 1.5.
Example 4 -- Mixed week with daily OT and weekly OT.
Day | Total Hours | Breakdown |
Mon | 13 | 12 Regular + 1 OT |
Tue | 12 | 12 Regular |
Wed-Fri | 8 each | Regular |
Sat | 14 | 12 Regular + 2 OT |
Totals: 60 regular hours and 3 daily OT hours. Weekly OT is 20 hours (60 minus 40) at the blended rate times 1.5.
Example 5 -- Midnight-crossing scenario. A 10-hour shift runs from 10/18 into 10/19, and a 13-hour shift is worked on 10/19. Shift 2 exceeds 12 hours, producing 1 OT hour. Total hours on 10/19 equal 15; after removing the shift-level OT, the remaining 14 hours exceed 12, producing 2 more day-level OT hours – 3 OT hours total at the blended rate times 1.5. (The consecutive-hour rule is not implemented in the current scope.)