Compliance & Policies for Compensation
The benefited staff compensation program is designed to provide salary opportunities that are market competitive and internally equitable to enable DU to attract, retain, and engage our workforce. Guidelines are established to ensure consistency, transparency, and a sustainable compensation program into the future. Our compensation guidelines are a useful resource for business officers and supervisors in determining the compensation for a new role, and making compensation decisions for current employees.
Federal & State Regulations
Click below to review the latest updates regarding State and Federal laws regarding compensation and wages:
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New Fair Labor Standards Act Rule for White-Collar Job Exemptions from Overtime Pay – March, 2019
Background
In 2019, the Department of Labor (DOL) proposed updates to the regulations governing the exemption of executive, administrative, and professional employees from the minimum wage and overtime pay protections of the Fair Labor Standards Act of 1938 (FLSA).
FLSA is the federal law that establishes minimum wage, overtime pay eligibility, record-keeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments.
The DOL published a notice of proposed rule-making on March 7, 2019. The new minimum salary threshold to be eligible for overtime pay has been set at $35,568 per year. The previous threshold was $23,660 annually. This means that employees paid up to $35,308 can be eligible for overtime pay.
What This Means for DUThe new rule changes the federal guidelines for overtime pay requirements under FLSA for higher education institutions along with all other organizations. As with most federal regulations, it will take time to fully understand the impact of this rule. So, while it's too soon to talk about specific impacts to individual positions within units, we will be meeting with division/unit leaders and sharing information as it relates to their units.
More InformationHere are some articles and websites that give you some idea of the complexity around this change while helping you understand it better.
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Fair Labor Standards Act (FLSA)
Fair Labor Standards Act (FLSA) is the federal law which establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting full-time and part-time workers in the private sector and in Federal, State and local governments.
COMPS Order #38 is the state law (Colorado Overtime and Minimum Pay Standards Order (COMPS Order)) that regulates wages, hours, working conditions, and procedures for private employers and employees for work performed within Colorado.
- The federal government establishes the salary threshold for exempt status, but local and state governments may set their own (as is the situation with COMPS Order #38) in which case, the highest of the wages prevails. See Salary Exemption Threshold chart.
Non-Exempt vs Exempt – The FLSA overtime rule determines whether positions are eligible or exempt from overtime pay. Job duties determine exempt status, not job titles.
Non-Exempt – non-exempt positions must be paid time and one-half of the regular rate of pay for any work more than: (1) forty hours per workweek (Monday – Sunday), (2) twelve hours per workday, or (3) twelve consecutive hours without regard to the starting and ending time of the workday (excluding duty free meal periods), whichever calculation results in the greater payment of wages. Reference: Colorado Department of Labor and Employment
Exempt - exempt positions are not eligible for overtime pay for hours worked over 40 in a workweek and must qualify by meeting certain criteria:
- Be paid a salary above a certain level (see Salary Exemption Threshold chart); and
- pass a duties test.
*Passing the duties test is generally accomplished by working in an executive, administrative, professional, or computer role.
Certain position categories need not receive any particular salary to be classified as exempt. These include:
- Teachers and coaches if their primary duty is teaching, tutoring, instructing or lecturing.
- Positions practicing law or medicine if they hold a valid license or certificate and are engaged in such a practice.
Compensation will review job descriptions and is the final approver on determining exemption status for all jobs.
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More Information - FLSA
There are many websites covering the FLSA rule. Here are some articles and websites with additional information:
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Equal Pay for Equal Work
The Equal Pay for Equal Work Act SB19-085 (EPEW) was signed into Colorado law in May of 2019 and implemented in January of 2021. The EPEW Act was implemented to further rectify pay disparities based on gender, or gender combined with another protected status, for employees doing substantially similar work.
The Act requires employers to:
- Post all employment opportunities, at least internally, excluding temporary, interim, and career progression promotions.
- Post the pay range for each employment opportunity.
- See open employment opportunities at DU
- Keep job descriptions and wage history for each employee while employed and for two years after termination.
The Act prohibits employers from:
- Seeking wage history from potential employees.
- Relying on a prior wage rate to determine a wage rate.
- Discrimination against or retaliation against a prospective employee for failing to disclose previous wage history.
- Discharging or retaliating against an employee for asserting the rights established by the EPEW Act.
- Discharging, disciplining, discriminating against, or otherwise interfering with an employee for inquiring about, disclosing, or discussing the employee's wage rate.
The Act outlines the following post-hire information is disclosed:
- The name of the candidate selected for a job opportunity.
- The selected candidate’s former job title if that individual was an internal hire.
- The selected candidate’s new job title.
- Information on how employees may demonstrate interest in applying for similar jobs in the future.
Notice need not be given if it will violate a candidate’s privacy rights or health and safety.
The University of Denver is committed to complying with the EPEW Act and creating a culture of equity and transparency. If you have any questions or concerns regarding the EPEW Act, please contact HR.Compensation@du.edu.
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Colorado Overtime and Minimum Pay Standards (COMPS) Order #38
On November 10, 2021, the Colorado Department of Labor and Employment adopted the Colorado Overtime and Minimum Pay Standards Order #38 (COMPS Order 38 Poster and Notice) (as a replacement for the previous order #37) and made it effective January 1, 2022. The Order provided minimum weekly salary thresholds to meet the “Salary Requirement” rules of the federal Fair Labor Standards Act for employees to be considered “exempt” from earning overtime. Each year, after 2024, moving forward will be based on the previous year’s threshold plus the consumer price index (CPI).
Effective Date
Salary Exemption Threshold
Weekly Threshold*
January 1, 2021
$40,500
$778.85
January 1, 2022
$45,000
$865.38
January 1, 2023
$50,000
$961.54
January 1, 2024
$55,000
$1,057.69
Each year after 2024
Prior year's salary + Consumer Price Index
Prior year's salary + Consumer Price Index
*Both weekly and annual threshold must be met.
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Denver's Minimum Wage Overview
In 2019, the Colorado legislature enacted a new statute permitting local governments to set a jurisdiction-wide minimum wage. In November 2019, the Denver City Council created Denver Revised Municipal Code Chapter §58-16, which sets the local minimum wage for Denver and prescribes the means for setting, enforcing, and complying with the new local minimum wage.
Effective Date
Denver's Local Minimum Wage
January 1, 2022
$15.87
January 1, 2023
$17.29
January 1, 2024
$18.29
Each year after 2024
Prior year's wage + Consumer Price Index