Does Colorado have daily overtime?
Yes. Colorado pays overtime after 40 hours in a workweek, 12 hours in a workday, or 12 consecutive hours — whichever calculation yields the most pay — under the state COMPS order. That is on top of the federal baseline, so a Colorado worker can earn overtime even in a week under 40 hours if a single day runs long.
Confirm the current rule and exemptions with the official source: Colorado Division of Labor Standards & Statistics.
The Colorado exceptions worth knowing
The COMPS order's minimum wage and overtime provisions apply to the retail and service, commercial support service, food and beverage, and health and medical industries. This is a narrow rule rather than a general one — it changes the answer only for the workers it names, and everyone else in Colorado is on the standard rule described above. Source: U.S. Department of Labor, State Minimum Wage Laws.
The federal rule that always applies in Colorado
Under the federal Fair Labor Standards Act (FLSA), covered non-exempt employees in Colorado must be paid at least 1.5 times their regular rate for every hour worked over 40 in a workweek. The math is two steps: overtime rate = regular rate × 1.5, then overtime pay = overtime rate × overtime hours. The authoritative federal reference is the U.S. Department of Labor overtime page. Rules change — confirm anything time-sensitive with Colorado's state labor department before relying on it.
No tax on overtime in Colorado
Overtime has never had a special higher tax rate — it is ordinary income. And under the 2025 federal law commonly called “no tax on overtime,” eligible workers in Colorado can deduct the premium portion of FLSA overtime (the extra 0.5x) from federal taxable income, up to annual caps, for tax years 2025 through 2028. Because it is federal, it applies in Colorado the same as every other state. Estimate what it is worth with the no tax on overtime calculator.
Run your Colorado numbers
Use the calculator above for a quick 1.5x figure, add double-time hours in the overtime calculator if your schedule qualifies, and compare every state's rules on the overtime rules by state page. This site does the math; your Colorado labor department and the U.S. DOL are the authorities on classification and eligibility.