Colorado Expands Overtime Pay Calculation Requirements - Colorado Supreme Court Ruling Expands Overtime Pay Calculations to Include Holiday Incentive Pay
Effective: Immediately
The Colorado Supreme Court has issued a new ruling that affects how overtime pay is calculated for non-exempt employees. As of September 9th, 2024, holiday incentive pay must be included in the “regular rate of pay” when calculating overtime. This ruling is in response to the Hamilton v. Amazon.com Services LLC case, where it was determined that holiday incentive pay constitutes part of an employee’s total compensation.
What This Means:
Employers must ensure that holiday incentive pay, or similar bonuses, are factored into overtime calculations. The change applies to all non-exempt employees working overtime in weeks where holiday incentive pay is earned.
isolved Client Update:
We are already updating isolved to reflect this change, and no action is needed on your part. The system will automatically calculate overtime based on the new requirement going forward.
Get day-to-day updates on Colorado Overtime Pay Calculation Requirements visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).
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