Many Colorado employers incorrectly classify employees as “exempt” to avoid paying overtime. They often assume that just because they pay you a salary or give you a manager title, you are not entitled to time-and-a-half.
This is often illegal.
At Baird Quinn LLC, we represent employees who have been misclassified under the Fair Labor Standards Act (FLSA) and the Colorado COMPS Order. If you have been denied overtime pay despite working long hours, you may be owed thousands of dollars in back wages and penalties.
Quick Summary: Exempt vs. Non-Exempt in Colorado
Am I entitled to overtime?
- Non-Exempt Employees: Must be paid overtime (1.5x) for hours worked over 40 in a week (or over 12 in a single day, per Colorado law).
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Exempt Employees: Are paid a fixed salary and are not entitled to overtime.
The Rule: To be legally exempt, you must meet BOTH of these requirements:
- Salary Test: You must earn at least the 2025 Colorado Salary Threshold ($56,485/year).
- Duties Test: Your actual daily job duties must match a specific exemption category (Executive, Administrative, or Professional).
The 2025 Colorado Salary Threshold
Colorado law is stricter than federal law.
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2024 Threshold: $55,000 per year ($1,057.69/week)
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2025 Threshold: $56,485 per year ($1,086.25/week)
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Highly Compensated Employee: $127,091 per year (2025)
The Bottom Line: If your salary is below $56,485 in 2025, you are likely non-exempt and entitled to overtime, regardless of your job title.
The “Duties Tests”: Are You Truly Exempt?
Employers often give employees fancy titles like “Assistant Manager” or “Team Lead” to deny them overtime, even though they spend most of their day doing the same work as hourly staff. This is a common form of wage theft.
Review the checklists below. If your job duties do not match these criteria, you may be misclassified.
1. The Executive Exemption Checklist
You are likely exempt only if:
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Your primary duty is managing the enterprise or a recognized department.
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You customarily and regularly direct the work of two or more full-time employees.
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You have the authority to hire or fire (or your recommendations are given “particular weight”).
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Red Flag: If you are a “Manager” but spend 90% of your time stocking shelves or serving customers, you may be entitled to overtime.
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2. The Administrative Exemption Checklist
You are likely exempt only if:
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Your primary duty is office or non-manual work directly related to management or business operations (e.g., HR, Accounting, Marketing).
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You exercise discretion and independent judgment on significant matters.
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Red Flag: If you just follow a manual and have no authority to make big decisions, you are likely non-exempt.
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3. The Professional Exemption Checklist
You are likely exempt only if:
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Your work requires advanced knowledge in a field of science or learning (e.g., Doctors, Lawyers, Engineers, CPA Accountants).
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This knowledge is customarily acquired by a prolonged course of specialized intellectual instruction (a degree).
Common Misclassification Scams We Fight
Our Denver employment lawyers frequently see employers use these tactics to avoid paying overtime:
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The “Salaried” Myth: Telling you that “salary means no overtime.” (False. You must meet the duties test).
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The Title Trap: Promoting a line cook to “Kitchen Manager” without changing their duties.
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The Independent Contractor Ruse: Labeling you a 1099 contractor when they control your schedule and work (a violation of the Colorado Employment Security Act).
Damages You Can Recover
If you have been misclassified, the law is on your side. Under the FLSA and Colorado Wage Act, you may be entitled to recover:
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All unpaid overtime premiums for the last 2–3 years.
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Liquidated Damages: Double the amount of wages owed (Federal).
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Attorney Fees: Your employer may be required to pay your legal costs.
Protect Your Right to Fair Pay
Determining if you are exempt is a complex legal analysis. Do not rely on your HR department’s opinion—they look out for the company, not you.
Contact Baird Quinn LLC today. We will review your job description, salary, and actual daily duties to determine if you are owed back wages.
Frequently Asked Questions: Overtime Exemptions & Misclassification
Can my employer refuse to pay overtime if I agreed to a salary?
Yes, but only if you meet the specific legal criteria for an exemption. In Colorado, you cannot waive your right to overtime pay just by signing an agreement or accepting a salary. If your job duties or your salary level do not meet the strict requirements of the FLSA or the Colorado COMPS Order, you are entitled to overtime regardless of any contract you signed.
What is the “White Collar” exemption in Colorado?
“White Collar Exemption” is a general term for the Executive, Administrative, and Professional exemptions. To qualify, an employee must generally be paid on a salary basis at or above the Colorado state threshold and perform high-level office or management work. These exemptions do not apply to manual laborers or “blue-collar” workers, regardless of how much they are paid.
What is the 2025 Colorado salary threshold for overtime exemption?
To be considered exempt from overtime in Colorado in 2025, an employee must earn at least $1,086.25 per week ($56,485 per year). This threshold is significantly higher than the federal standard. If you earn less than this amount, you are likely entitled to overtime pay for all hours worked over 40 in a week or 12 in a single day.
How far back can I claim unpaid overtime in Denver?
Under the FLSA and Colorado law, you can typically recover unpaid wages for the past two years. However, if your attorney can prove the employer’s violation was “willful” (meaning they knew they were violating the law or showed reckless disregard), the statute of limitations is extended to three years.
What happens if I am a manager but spend most of my time doing hourly work?
This is a major “red flag” for misclassification. Under the “primary duty” test, if your main job functions are actually manual labor, customer service, or clerical tasks—even if you have a manager title—you are likely non-exempt and owed back pay for all overtime hours worked.