New Year, New Rules for Colorado Employers

At a Glance

• Colorado employers should review the changes to the Colorado Equal Pay for Equal Work Act as well as the amended Equal Pay Transparency Rules to prepare for the numerous changes in 2024.
• Colorado employees can begin applying for FAMLI leave up to 30 days before their leave, meaning they can already apply for FAMLI leave. As such, Colorado employers should take measures to prepare for 2024, including reviewing the FAMLI rules.
• Colorado employers should use the COMPS Order #39 beginning January 1 in required postings and notices.
• Effective January 1, the minimum wage will be $14.42 per hour. The PAY CALC Order also addresses the minimum pay for various positions.

This year brought many changes to Colorado’s employment laws, as we discussed in our previous Insight. On January 1, 2024, implementing rules for the Colorado Family and Medical Leave Insurance (FAMLI) Act and the Colorado Equal Pay for Equal Work Act (Equal Pay Act) will become effective. In addition, the Colorado Department of Labor and Employment (CDLE) has published an updated Colorado Overtime and Minimum Pay Standards (COMPS) Order, the Publication and Yearly Calculation of Adjusted Labor Compensation (PAY CALC) Order, as well as corresponding amended Interpretative Notice & Formal Opinions (INFOs) (which can be found here).

Below is a summary addressing the new regulations, and suggestions for employers to prepare for the new year.

Amended Equal Pay Transparency Rules

Beginning January 1, 2024, the collection of new disclosure requirements under Colorado’s amended Equal Pay Act becomes effective. Specifically, this includes the disclosure requirements for job opportunities, new hires and employees on a career progression track. As required by the legislation, the CDLE has adopted new Equal Pay Transparency Rules to address the many changes that resulted from last summer’s overhaul of the Equal Pay Act.

The amended Equal Pay Transparency Rules continue to provide requirements related to the timing and content of job postings for Colorado employers. In addition, the amended Equal Pay Transparency Rules include clarifications related to what disclosures must be made and to which employees. For example, the new rules address disclosure requirements (or more accurately the exception for) “Acting, interim, or temporary (“AINT”) hires” as well as the geographic limitations of the postings for job opportunities, new hires and career progression notices.

Colorado employers should review the changes to the Equal Pay Act as well as the Equal Pay Transparency Rules to prepare for the numerous changes to this law in the coming new year.

Adopted FAMLI Rules

Over the past year, the FAMLI division of the CDLE has been amending and adopting various implementing rules related to the FAMLI program, but this process has slowed and the new regulations are generally ready for 2024.

There are FAMLI rules to address the following issues:

• Premiums
• Local Government Participation
• Benefits and Employer Participation
• Coordination of Benefits
• Private Plans
• Program Integrity
• Job Protection, Anti-retaliation and Anti-interference
• Investigations
• Appeals

As Colorado employers know, the state’s long-anticipated FAMLI program will finally permit employees to take leave beginning January 1, 2024. Notably, Colorado employees can begin applying for FAMLI leave up to 30 days in advance of the start of their leave date, meaning employees can already apply for FAMLI leave. As such, Colorado employers should take measures to prepare for 2024, including reviewing the above-noted rules.

The COMPS Order and the PAY CALC Order

The CDLE is also publishing a new COMPS Order and, therefore, creating COMPS Order #39.

COMPS Order #39 includes several changes, including clarifications to the calculation of regular rates for employees with multiple jobs as well as to the “time worked” rule. In addition, Rule 1.8.1 is amended to clarify that tips are not included in the regular rate, which increases 50% for overtime hours. Relatedly, COMPS Order #39 provides an updated definition of “tipped employee” as well as clarification related to which employees that receive tips can be included in the tip pool. There is also to be a new exception to the overtime requirements for interstate airline employees that engage in voluntary shift trade.

By way of reminder, Colorado employers are required to post and include in employee handbooks a copy of the current COMPS Order poster. As such, Colorado employers should use the COMPS Order #39 poster beginning January 1, 2024, in required postings and notices.

Relatedly, the CDLE updated the PAY CALC Order for next year. The PAY CALC Order is updated each year to account for inflation. Effective January 1, 2024, the minimum wage will be $14.42 per hour. The PAY CALC Order also addresses the minimum pay for various positions, such as for highly compensated employees (including as connected to Colorado’s noncompetition agreement law), so Colorado employers should review the new PAY CALC Order.

In addition, the CDLE is also adopted Prevailing Wage and Residency Rules that become effective January 1, 2024, and rules related to the Protections for Public Workers Act (PROPWA), which will become effective July 1, 2024. Information on these rules can be found on the CDLE’s website.

As we near the end of the year and employers are taking stock of their policies, agreements and training programs, they should make sure new laws and requirements have been incorporated. Our summary of those recent Colorado changes can be found here.

Employers should not hesitate to reach out to an employment lawyer to discuss the various amendments effective in 2024 and how employers can comply with all of Colorado’s new employer obligations.