This article explains how Inn-Flow Labor and Payroll supports Colorado-specific overtime rules under the Colorado Overtime and Minimum Pay Standards (COMPS) Order. These rules differ from the federal FLSA weekly-only overtime standard and must be followed carefully to maintain compliance.

Note: This only affects client with the new Labor Calculation Engine enabled. Please reach out to your Implementation Manager or CSM for more information on enablement. 

TABLE OF CONTENTS

• Overview
• Colorado Overtime Rules (COMPS Order #38)
• Regular Rate Calculation (Weighted Average)
• Overtime Logic (Colorado)
• How OT Hours Are Identified
• Weekly Overtime (Colorado)
• Summary

Overview

Colorado requires employers to apply overtime based on:

1. Hours worked over 12 in a single workday
2. More than 40 hours in a workweek

Inn-Flow calculates all applicable scenarios and automatically applies the most favorable outcome to the employee.

IMPORTANT: Inn-Flow only accounts for 12+ hours worked within a 24-hour day (midnight–11:59 PM) and does not currently support the 12+ consecutive-hour rule at this time.

Colorado Overtime Rules (COMPS Order #38)

Colorado’s rules fall between federal and California requirements.

1. Daily Overtime (OT)

        More than 12 hours in a single workday is paid at 1.5× the regular rate.

2. Weekly Overtime

        More than 40 hours in a workweek is paid at 1.5×.

3. Excluded Hours Weekly Overtime

        More than 40 hours in a workweek is paid at 1.5×.

4. Excluded Hours

        The following do not count toward daily or weekly overtime:

1. PTO
2. Paid holidays
3. Paid, non-working leave that does not qualify as “hours worked”

Regular Rate Calculation (Weighted Average)

Colorado always requires blended-rate overtime when multiple pay rates are worked.

Blended Regular Rate = Total Straight-Time Earnings ÷ Total Hours Worked

    Multipliers:

1. 1.5× for all overtime

    Unlike California:

1. Colorado does not use Double Time (2×)
2. Colorado does not use the "rate in effect" method — blended rate is always required

Overtime Logic (Colorado)

Inn-Flow inserts OT hours when:

1. A shift exceeds 12 hours in actual time worked
2. Or a calendar day total exceeds 12 hours (after shift-level OT removal)

OT hours:

1. Are paid at Blended Rate × 1.5
2. Are excluded from weekly 40-hour OT eligibility
3. Are stored separately in the calculation engine for audit and payroll export

There is no DOT (double-time) in Colorado.

How OT Hours Are Identified

Colorado OT determination occurs in two steps:

Step 1: Shift-Level OT

    If a single shift exceeds 12 hours:

1. All hours beyond 12 are OT
2. Those hours are applied to the shift’s associated date

Step 2: Daily-Level OT

    After shift-level OT is removed:

1. Combine all hours worked on that date
2. If total remaining hours exceed 12
3. Hours beyond 12 are also OT
4. Applied to the actual date where the hours exceeded the limit

OT Pay Rate

1. Always Blended Rate × 1.5

Weekly Overtime (Colorado)

Weekly OT applies only to regular hours beyond 40. OT hours do not contribute.

Weekly OT rate:

1. Blended Rate × 1.5

Worked Examples

Example 1: Single 13-Hour Shift

OT is applied because the shift exceeds 12 hours.

Example 2: Two Shifts on Same Date

After shift-level evaluation, the date total exceeds 12 → 2 OT hours.

Example 3: Weekly OT Without OT

| Mon–Fri | 9 hours each → 45 total |

1. No day exceeds 12 hours, so no OT
2. Weekly OT = 5 hours @ blended × 1.5

Example 4: Mixed Week – OT + Weekly OT

Totals:

1. Regular = 60
2. OT = 3
3. Weekly OT = (60 – 40) = 20 hours @ blended × 1.5

Example 5: Midnight-Crossing Scenario

Decision Note: Consecutive-hour rule not implemented in current scope.

| Shift 1 | 10 hrs (10/18 → 10/19) |

| Shift 2 | 13 hrs on 10/19 |

OT logic:

1. Shift 2 exceeds 12 → 1 OT
2. Total hours on 10/19 = 15
3. After removing shift-level OT, remaining 14 > 12 → 2 additional day-level OT

Total OT = 3 OT hours at blended × 1.5

Summary

Colorado’s overtime rules require:

1. 1.5× for hours beyond 12 per day
2. Weekly OT after 40 hours
3. Weighted-average overtime for multiple rates
4. No double time

Excluded from all overtime calculations:

1. Inn-Flow only accounts for 12+ hours worked within a 24-hour day (midnight–11:59 PM) and does not support the 12+ consecutive-hour rule
2. PTO
3. Paid holidays
4. Non‑working paid leave that does not qualify as “hours worked”
5. Any consecutive‑hour overtime rules (not supported)

Inn-Flow ensures all calculations follow COMPS Order #38 and always pays whichever outcome provides the employee the greatest benefit. 

For questions, please contact Inn-Flow Support.