Colorado Compliance Connection - May 2026

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Federal  Compliance Update  

DOL Rescinds 2024 FinalOvertime Rule

On May 14, 2026, the U.S.Department of Labor (DOL) announced a technical amendment rescinding the department’s 2024 final overtime rule. The 2024 final rule amendedrequirements that employees in white-collar occupations must satisfy to qualifyfor an overtime exemption under the Fair Labor Standards Act (FLSA). Thisaction formalizes the removal of the regulatory text of the now-vacated 2024final rule from the Code of Federal Regulations and, in its place, republishesthe regulatory text that existed prior to the final rule’s effective date.

Background

The FLSA white-collarexemptions apply to individuals in executive, administrative and professional(EAP) occupations, as well as in some outside sales and computer-relatedoccupations. Some highly compensated employees (HCEs) may also qualify for theFLSA white-collar overtime exemption. To qualify for this exemption,white-collar employees must satisfy the standard salary level test, among othercriteria. This salary level is a wage threshold that white-collar employeesmust receive to qualify for the exemption.

2024 Final Rule

On April 26, 2024, theDOL published a final rule amending the requirements that employeesin white-collar occupations must satisfy to qualify for an FLSA overtimeexemption. The final rule increased the standard salary level, starting July 1,2024, from:

·      $684 to $844 per week ($35,568to $43,888 per year) for EAP employees; and

·      $107,432 to $132,964 per yearfor HCEs.

·      On Jan. 1, 2025, the standardsalary level was set to increase again from:

·      $844 to $1,128 per week($43,888 to $58,656 per year) for EAP employees; and

·      $132,964 to $151,164 per yearfor HCEs.

The rule also enabled the DOLto update salary levels automatically every three years starting July 1, 2027.

Employer Takeaway

The DOL’s technical amendmentformally reinstates the pre-July 2024 salary threshold that white-collaremployees must receive to qualify for the FLSA overtime exemption. Thedepartment’s action does not change employers’ compliance obligations, as thestandard salary level of $35,568 per year for EAP employees and $107,432 peryear for HCEs has been in place since the District Court vacated the final ruleon Nov. 15, 2024.

    State  Compliance Update  

Update on ColoradoEmployment Law Proposed Legislation

HB26– 1005  Worker Protection CollectiveBargaining https://leg.colorado.gov/bills/HB26-1005 - Passed

·      Forfinal act information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      TheFinal Act has not been signed by the Governor.

HB26– 1010  Older Adult Support &Representation In Workforce https://leg.colorado.gov/bills/HB26-1010 - Passed

·      Formost recent information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      Thelast notation is that this has been “Rerevised”.

HB26– 1054  Protections for Worker Safety https://leg.colorado.gov/bills/HB26-1054 - Lost

HB26– 1143  Non-Employment EducationalOpportunities Background Check Information https://leg.colorado.gov/bills/HB26-1143 – Passed

·      Formost recent information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      Thelast notation is that this has been “Rerevised”.

HB26– 1207  Disclosure of DemographicWorkforce Data https://leg.colorado.gov/bills/HB26-1207 - Passed

·      Forfinal act information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      TheFinal Act has not been signed by the Governor.

HB26– 1210  Prohibit Surveillance Price &Wage Setting https://leg.colorado.gov/bills/HB26-1210 - Passed

·      Forfinal act information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      TheFinal Act has not been signed by the Governor.

HB26– 1272  Extreme Temperatures WorkerProtections https://leg.colorado.gov/bills/HB26-1272 – Passed

·      Formost recent information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      Thelast notation is that this has been “Rerevised”.

SB26– 045  Nuclear Workforce Development& Education Program https://leg.colorado.gov/bills/SB26-045 - Lost

SB26– 047  Colorado Firefighter Safety ActPetition Elections https://leg.colorado.gov/bills/SB26-047 – Became Law

·      Forfinal act information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      TheFinal Act has been signed by the Governor.

·      Tentativeeffective 90 days after final adjournment of the general assembly (August 12,2026).

SB26– 052  Coal Transition CommunityInvestment https://leg.colorado.gov/bills/SB26-052 – Became Law

·      Forfinal act information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      TheFinal Act has been signed by the Governor.

·      Generaleffective date is March 9, 2026.

·      Themandate requiring covered businesses operating in coal transition communitiesto provide hiring preferences to qualified coal transition workers becomeseffective on January 1, 2027.

SB26– 081  Increase Agricultural EmployeeOvertime Protections https://leg.colorado.gov/bills/SB26-081 - Lost

SB26– 087  Create Legislative Leave JobProtection for General Assembly Members https://leg.colorado.gov/bills/SB26-087 - Lost

SB26– 093  Workers’ Compensation InsuranceCoverage Verification https://leg.colorado.gov/bills/SB26-093 - Passed

·      Forfinal act information, click the link above and scroll down to the “RelatedDocuments & Information” section.

·      TheFinal Act has not been signed by the Governor.

    Compliance  Calendar  

June

06/01 – Prescription Drug DataCollection Reporting

July

7/31 – Form 5500 Filing Deadline(Calendar Year Plans)

7/31 – PCORI Fee Deadline

August

8/1 – VETS – 4212 Filing Open (federalcontractors)

Disclaimer:

Lighthouse HR Support (LHRS) providespractical human resource information and guidance based upon our knowledge andexperience in the industry and with our clients.  LHRS services are not intended to be asubstitute for legal advice.  LHRSservices are designed to provide general information to human resources and/orbusiness professionals regarding human resource concerns commonlyencountered.  Given the changing natureof federal, state, and local legislation and the changing nature of courtdecisions, LHRS cannot and will not guarantee that the information iscompletely current or accurate.  LHRSservices do not include or constitute legal, business, international,regulatory, insurance, tax, or financial advice.  Use of our services, whether by phone, emailor in person shall indicate your acceptance of this knowledge.  Information provided in part by Mineral andZywave.  

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