Frequently Asked Questions
Brief answers to some of the most-asked questions we get from our clients.
What government posters must I display?
Both the Federal government as well as individual states require posters to be displayed at their workplace. For Federal requirements please visit (http://www.dol.gov/compliance/topics/poster.htm). State of Colorado requirements can be viewed here (http://www.colorado.gov/cs/Satellite?c=Page&childpagename=CDLE-LaborLaws%2FCDLELayout&cid=1249907618881&pagename=CDLEWrapper)
How do I download the required Colorado minimum wage poster?
For 2012, the minimum wage for the State of Colorado is $7.64 per hour. The Colorado minimum wage poster can be downloaded at: http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=application%2Fpdf&blobkey=id&blobtable=MungoBlobs&blobwhere=1251757685459&ssbinary=true In addition, every year the State of Colorado reviews and changes the minimum wage based on the CPI for the Denver Metro Area. This rate will increase or decrease depending on the change. As this occurs, a new minimum wage poster should be printed and displayed in a location frequently viewed by all employees such as a break room. However, please be aware that if the Federal minimum wage rate is higher, you are required to pay the Federal amount.
Do I need to keep time records?
Yes. According to the Department of Labor and the Fair Labor Standards Act (FLSA), three years of records must be retained.
Can I exclude paying overtime to my employees if we have an agreement?
No. Employees are not allowed to waive their rights to fair wages under the Fair Labor Standards Act (FLSA) regardless of any agreement or contract. All non-exempt employees must be paid overtime for all hours worked in excess of 40 per week according to Federal rules. Individual State may have additional requirements. In Colorado, overtime must be paid for all hours work over 12 in a workday, in addition to the 40 hours per work week.
Are salaried employees exempt from overtime?
It depends. Paying a salary to your employee does not always qualify them for exempt status. Certain qualifications are required to meet exempt status. If the qualifications are not met, hours worked must still be tracked and overtime must be paid even if paid on a salary basis. For more information on exempt status qualifications, please contact StaffScapes or visit the DOL webpage. http://www.dol.gov/dol/topic/workhours/hoursrecordkeeping.htm
Can I pay my nonexempt employees on a salary basis?
Yes. However, hours must be tracked and overtime is required to be paid for time worked over 40 hours in a workweek. Please note other States may have additional requirements. In Colorado, overtime must be paid for anything over 12 hours in a workday as well.
How do I determine if my employee is exempt from minimum wage and overtime?
According to the Department of Labor (DOL) there are specific requirements that must be met to be eligible for exempt status. More information can be obtained HERE http://www.dol.gov/dol/topic/workhours/hoursrecordkeeping.htm
Can I hold an employee’s paycheck because of theft?
It depends. If you have filed a police report and pressed charges, Colorado law allows you up to 10 calendar days to conduct an audit after termination before payment is required. If criminal charges are not filed within 90 days or the employee is found not guilty in a court of law and charges are dismissed, the accused employee is entitled to recover any withheld amounts. Individual State Law may differ. Currently, there is no Federal Law covering theft.
What type of deductions can I make to my employees’ paycheck? Do I have to obtain written authorization from the employee for de
According to the Department of Labor (DOL), you as an employer are allowed to withhold standard payroll deductions such as taxes, insurance, 401k contributions, elective benefits and garnishments or other court ordered deductions. Other deductions may be eligible if agreed upon in advance and documented in writing such as loans, pay advances, goods or services, equipment, property or union dues.
I pay my non-exempt employees commission or piecework. Do I have to pay overtime?
Yes. You are required to track time worked on a time card and pay any overtime completed above 40 hours in a workweek. Individual States may have additional requirements. Here in Colorado, you are required to pay overtime for any hours worked over 12 on a workday.
When is an employee’s final paycheck due?
At this time, no Federal rule is in place; however, all employers must conform to State law. Currently in Colorado, if the employee resigns, their check may be issued on the next pay period pay date. If an employee is terminated and your Human Resources department is on-site, you must issue the check at the time of termination. If the department is not regularly scheduled for operation, the check must be issued within six (6) hours of the start of the workday. If your payroll processing department is located off-site, you must issue the check within 24 hours of the next workday.
What is the youngest age for employment?
According to Federal Law, no individual under the age of 14 is allowed to perform any work covered by FLSA.. Ages 14-15 may participate in non-hazardous and non-manufacturing job with limitations to the hours worked. Ages 16-17 have no hour restrictions, however, are not allowed to work in industries that are considered hazardous. Ages 18 and above are not subject to restrictions.
Do I have to give breaks?
No, not according to Federal law. However, Colorado law requires a 10 minute break for every four hours worked. In addition a one half hour unpaid lunch break is required if your employee works more than five consecutive hours. Individual State law may differ, please check with your government to verify requirements.
My employees are claiming only enough tips to bring them up to minimum wage. Is this enough?
No. All tips in excess of $20 per month must be reported to you as the employer. All tip earnings regardless of monthly amount must be claimed as income and taxes paid accordingly. For more information, please visit http://www.irs.gov/taxtopics/tc761.html
Do I have to pay my employees for meetings, lectures, training, travel time, waiting time and on-call time?
It depends. Generally, most of the time the answer is yes. However, individual circumstances impact compensable time. Please contact StaffScapes for guidelines.
What is the minimum wage for employees?
Currently, the Federal minimum wage is $7.25 per hour. However, Colorado has its own established minimum wage which is currently $7.64 per hour. Whichever amount benefits the employee the most should be used as the effective minimum wage.
How often do I have to pay my employees?
Wages must be paid regularly and no more than one calendar month apart. Colorado requires that all employees are paid within 10 days of the last day of the pay period. Each State may be different and we suggest visiting the website for your State.
What are my requirements to pay overtime?
Federal Law requires overtime must be paid when an employee works over 40 hours in a work-week. Individual States may have additional requirements. In Colorado, you must pay over-time for any time worked over 12 hours per work day in addition to the 40 hours worked in a week.
What records do I need to keep regarding my employees?
It is important that you maintain records for payroll, time sheets, employee files etc. Each of these areas has individual required time frames in which you must retain the documents. These can range from a few years to permanent. Consult your individual State requirements for more information.
If Federal & State wage laws differ, which one do I use?
It depends. Generally, whichever one benefits the employee the most. However, if only one law is enacted, either Federal or State, you must follow those guidelines.