Is 32 hours considered full time in Colorado?

Many Colorado employers provide employee benefits, pay differentials, job assignments and other important benefits on the basis of whether an employee works full time or part time. This can lead to a lot of questions about what is full time under Colorado employment law. These questions typically do not exist when employees work a forty hour workweek but usually arise when employees work thirty-two hours or some other slightly lower number. For example, you might wonder is 32 hours considered full time in Colorado. The answer depends upon to what issue the full time status relates. Today’s post will explore some of the common issues in determining full time status under Colorado employment law.

Basic rule for full time status in Colorado

Colorado labor and employment law does not contain an expansive definition of full time or part time status for employees. In general an employee is full time or part time based upon an employer’s own definition. Full time versus part time is often a dividing line for benefits or certain positions but that line is typically not drawn out of a federal or Colorado employment law.

However, several employment law statutes set minimum or maximum limits for how much an employee may or must work to obtain a specific status under the law. Examples include:

  • Employees must work 1000 hours within a calendar year to obtain FMLA eligibility which might informally be considered a full time employee;
  • Minors generally have limited maximum hours of work within a workweek and cannot be required to miss school hours for work;
  • Employees working in certain transportation jobs may be limited by how many travel hours they may complete in a day or week;

We will talk about some common statutory minimum hours for full time status under federal and Colorado employment law in greater detail although it is important to note that the term “full time” is not common statutory or regulatory language in federal and Colorado law.

When a labor law or employment law does not set a minimum or maximum hourly requirement it is generally up to the employer or an agreement between employees and employer to determine when full time status kicks in for particular benefits, job assignments, compensation and so forth. Many Colorado employers consider full time a forty hour workweek schedule but some draw the line at a smaller number. Some employers set the line at thirty-five or thirty-two hours, particularly in industries like restaurants and retail where employees might work flexible schedules or less than a five day workweek.

The best way to assess whether you are a full time employee in Colorado at thirty-two hours is to focus on the specific subject in which the full time status applies. Review your employer’s documentation and legal resources to determine the answer as it applies to that subject. You might be full time for some subjects and not for others. Applying a single rule to every workplace issue might result in misinforming yourself. Operating on misinformed positions could put your job at risk. As always, if legal issues are involved in your question you should consult employment lawyers in Colorado as soon as possible.

Overtime pay in Colorado

Overtime pay is not exactly a full time versus part time issue but it definitely deals with the work hours for an employee. Federal and Colorado overtime laws calculate overtime pay for all hours in the workweek exceeding forty hours of work for all nonexempt employees. For this purpose an employee can be considered a full time employee at forty hours under the statute. An employee working overtime hours is more than full time. An employer could begin paying overtime pay at thirty-two hours if it wishes but that is an extremely uncommon practice.

Employee benefits and full time status

Most employees care about full time status because employers make benefit plans available to full time employees but may not extend them to part time employees. When we think about employee benefits from an employment law perspective we can think of them in two categories. The differences in categories is important to how and when an employer may make benefits available to employees based on work hours.

Regulated benefit plans under federal and Colorado employment law

First are employee benefit plans regulated by law. For private employers this typically falls under ERISA, the federal law regulating many types of employee benefit plans including:

  • 401k plans
  • Defined benefit pension plans
  • 403b plans
  • Health care plans (e.g. health insurance)
  • Cafeteria plans (e.g. reimbursement benefits)
  • Certain long and short term disability benefits
  • Some severance benefits

Employees of federal and Colorado government agencies often offer similar benefits operated under a plan regulated by state or federal laws as applicable. Although the complex regulatory apparatus behind ERISA does not apply to these plans they still generally follow similar regulatory mechanisms.

Benefits regulated by ERISA or other laws must operate as a plan with established rules. The applicable laws often set requirements for eligibility to the plan. Often employers may establish rules for eligibility based upon hours or length of service with the employer within the permitted confines of the law. Often employers can set eligibility on completion of a certain number of work hours in a year which effectively makes many part time employees ineligible for benefits.

A specific weekly hour threshold exists in the Affordable Care Act. Under the ACA employers must make available compliant health insurance to all employees who regularly work at least thirty hours in a work week. For the purposes of the ACA an employee is full time if the employee works thirty hours in a regular work week. Employers cannot set a higher limit for full time like thirty-two hours or forty hours.

Other benefits or fringe benefits

Employers may offer other benefits not regulated by ERISA or other laws. For these benefits an employer can generally set whatever constraints on eligibility it wishes. (Employers cannot use an unlawful motivation to extend benefits, such as unlawful forms of employment discrimination or in retaliation for complaining about a minimum wage violation.) These benefits include:

  • Paid time off (e.g. vacation pay, sick pay, personal days)
  • Company car
  • Most bonus programs
  • Training programs
  • Company sport programs
  • Free tickets to events
  • Raffles

Employers can set limits for work hours, length of service, job title and so forth to make these benefits available. If an employer sets a threshold for work hours as a full time employee for these benefits it may do so and even set different standards for each benefit. Often employers try to target a specific number for consistency, such as fort hours or thirty-two hours for full time employment across benefits; but an employer is free to have a more confusing policy.

Unemployment benefits in Colorado and employment status

Colorado unemployment benefits require that employees work for a given length of time and earn a minimum of $2500 during that period. It does not require an employee to work any specific number of hours in a workweek or for an employer to designate employees as full time employees. So long as an employee meets the length of service and wage minimums then the employee qualifies for a claim. (Assuming the employee otherwise qualifies.)

Some employers as a matter of course pay severance benefits to employees designated as full time employees. Here the issue may be complicated because a severance plan may fall under ERISA regulation but does not necessarily fall under ERISA regulation. The best way to begin answering that question is to review the severance information available from your employer which may include ERISA language.

Do Colorado employees get paid for snow days?

With winter weather in full swing employees in Denver and other parts of Colorado wake up to a lot of snow and ice days. Employers make decisions to open for limited hours or to close entirely for those days. For some workers that can mean an extra day off; but for other employees that can mean losing work hours and badly needed pay. That can leave many employees wondering if work is closed on a snow day, do I get paid? The answer is sometimes depending upon the worker’s status as an employee or independent contractor and exempt or non-exempt. Let’s explore this answer for Colorado workers.

Exempt employees vs. Nonexempt employees

Rules for payment of wages to employees differ depending upon whether an employee is appropriately classified as an exempt or nonexempt employee under the Fair Labor Standards Act and Colorado employment law. Under federal and Colorado wage law an exempt employee is exempt from overtime pay and minimum wage rules. Exempt employees are generally salaried employees who meet one or more statutory exemptions.

An employee is not exempt merely because he or she receives pay on a salary basis or because the employer says the employee is exempt. Most nonexempt employees receive hourly pay on the basis of hours worked in the workweek; but there are employees properly classified as nonexempt who receive a salary. Many employers misclassify nonexempt employees as exempt employees which often results in unpaid overtime pay and minimum wage violations. If you believe you may be misclassified then you should talk to a Colorado unpaid wages lawyer right away.

Snow day pay for nonexempt employees in Colorado

Nonexempt employees are not entitled to pay for hours the employer closes a work site under federal or Colorado employment law. Nevertheless, you may receive wages for an inclement weather day under an employer’s voluntary policy or under a contracted benefit such as:

  • An employer’s elective policy to pay wages for an inclement weather day;
  • The employer allows employees to elect to receive vacation pay or other PTO instead of taking the snow day unpaid;
  • A collective bargaining agreement between your union and employer includes required paid time for inclement weather days;
  • An individual employment contract includes provisions requiring the employer to pay wages for inclement weather days.

You should review the employer’s handbook or any employment contract for these provisions.

Snow day pay for exempt employees in Colorado

The rules for salaried exempt employees under the Fair Labor Standards Act and Colorado employment law are more complex. Employers must pay salaried exempt employees within specific rules to maintain the exemption from overtime pay and minimum wage. If an employer violates these rules then the exemption is destroyed and the employer must pay the employee at least minimum wage plus overtime pay for applicable hours. One of these rules applies to situations where an employer closes for a partial or full day due to weather.

Under the Fair Labor Standards Act an employer generally must pay a salaried exempt employee for an entire week of pay if the employee worked any part of the workweek. Under this rule the employee must be willing to work but is unable to work due to conditions not caused by the employee. This certainly includes days the employer shuts down work, such as snow days. It also includes days in which weather prevents you from getting to the office but the employer is open. (By contrast, an employer can make deductions for narrow reasons, such as the salaried, exempt employee’s FMLA leave.) Although employers cannot deduct salaried exempt employee’s pay for snow days it may deduct the time the employer closes from the employee’s PTO bank.

Employment discrimination lawyers in Colorado

Independent Contractors in Colorado and snow day pay

Independent contractors are not employees and therefore only receive pay under the conditions of their contracts. Often contractors only receive pay for days they work or generally for performing services; therefore, it is not common for contractors to receive pay for snow days. Independent contractors must review the terms of their contracts to determine whether the contract gives them snow day pay.

However, it is common for employers to misclassify employees as independent contractors to avoid employee rights laws and wage requirements. Misclassified employees may have remedies against their employer including overtime pay and FMLA rights. If you believe your employer misclassified you as an independent contractor then you should talk to a Colorado unpaid wages lawyer right away.

What is considered a living wage in Colorado?

Living wage has been a growing issue in labor politics and economic discussions in this country, particularly as unions and other worker groups began aggressively championing raising minimum wage over the past few years. Living wages are of concern here in Colorado as rent and home prices soared over the past decade. When living costs in Denver and other Colorado cities exceed local wages it prices workers out of their homes. Rising costs partially drove the push to increase Colorado minimum wage; however, minimum wage often fails to provide a living wage for Colorado workers. Today’s post will explore what is considered a living wage in Colorado and some of the legal concerns that arise in the debate.

What is a living wage?

A living wage is the hourly rate an individual must earn to support his or her family when that person is the sole provider and works full time. Living wage is not the same thing as minimum wage. Minimum wage is a minimum amount an employer may pay to an employee covered by the minimum wage law for work. Living wage considers the costs to that family to meet their minimum needs for self-sufficiency where the family lives. These costs change across regions rather than assume equal costs across the board. Note that a living wage is not a calculation of the wage necessary to live comfortably or move up the economic ladder.

Typically economists calculate living wages in light of the size of the family supported by the sole provider. For example, a Colorado employee without a significant other or children needs to earn far less than an employee supporting a family of four. This is for obvious reasons. Feeding four people costs more than one. Therefore, living wage varies not only by location but also by the size of the family supported.

Living wage in Denver, for example, requires a single employee to earn $12.95 which is above the current minimum wage. If that employee supports another adult and two children that number rises to $28.01, almost three times minimum wage. See your local living wage calculated using this calculator from MIT.

Colorado labor law final paycheck infographic

Colorado minimum wage vs. living wage

Minimum wage laws began as a way to end sweatshops and require employers to pay a living wage. Generally over time minimum wage laws in the United States failed to keep up with living wage requirements. Federal minimum wage set by the Fair Labor Standards Act is far below the living wage calculated in most parts of the country. Twenty-nine states have state minimum wages higher than federal law, including Colorado. Amendment 70 to the Colorado Constitution set minimum wage on a stair step to 2020 when increases tie to inflation.

Employees earning the Colorado minimum wage may still not reach a living wage. Considerations for calculating living wage include home prices, rent costs, utilities, food, transportation and healthcare. Although these are basic costs they do not include many expenses that Colorado employees may face. Nor do they include other financial considerations like retirement savings or entertainment.

Considerations for Colorado living wage

A living wage is not uniform across Colorado. Basic family expenses vary considerably across the state. For example, rent and home prices in Denver are far more expensive than most rural parts of Colorado. As expenses increase, so too does the living wage required to afford those expenses. Living wage is not always a linear increase with the urban density. For example, the Colorado Springs metro area requires only a slight decrease from the Denver metro area. Generally, however, urban areas are more expensive than rural areas in Colorado.

An important issue in Colorado is that living expenses are increasing at a rapid rate compared to wages. Studies of government data reflect living expenses increased three times as fast as wages. You can easily see how this happened with the explosion of both home and rent costs compared to even the increase in Colorado minimum wage. This is not a Denver problem. Growth in other large Colorado cities like Greeley, Loveland and Pueblo face the same struggles. Urbanization is not the only factor driving higher living costs. Many mountain communities have high living wages due to expensive housing costs, particular around tourist destinations.

A living wage in Colorado

Colorado employees must consider their location and how local cost variance affects their ability to support their families. The size of the family and location are key issues in self-sufficiency. An individual employee in Colorado needs to earn between $10.75 and $13 hourly just to sustain basic living costs. Note that even the lowest cost area of the state is above the Colorado minimum wage. For a family of four the living wage ranges from $24.00 to $29.00 far above the state minimum wage.

Unfortunately two income households do not fare better on minimum wage. In Denver a two income household with no children needs two earners making $10.55 hourly which is still above minimum wage. In lower cost areas a two income household with no children earn a living wage at minimum wage but fall below if they have a child.

This demonstrates how financially precarious life can be for many Colorado families. Lost wages or a lost job can send a family already struggling to meet their basic needs into complete financial collapse.

Legal issues and a living wage in Colorado

Families earning at or below a living wage in Colorado often work jobs at or near minimum wage. They may rely upon working multiple jobs (full or part time) and earning overtime pay. An employer refusing to pay wages earned by employees can have substantial effect on the employees and their families.

Employers who pay non-exempt employees below minimum wage steal from their workers and violate federal and state minimum wage laws. Employees in this situation have rights under federal and state law to recover unpaid wages through administrative or judicial means.

The same happens when employers fail to pay overtime pay owed to non-exempt employees. Employees earn overtime pay under federal and state wage laws. This is a higher rate of pay than minimum wage or the employee’s regular rate of pay. Employees can recover unpaid overtime pay through Colorado administrative procedures or in court.

Employers also sometimes fail to pay wages at all. Some ways employers fail to pay wages owed include:

  • Not issuing paychecks at all;
  • Failure to pay a final paycheck;
  • Shifting hours from one workweek to another to turn overtime hours into regular pay hours;
  • Removing hours from timesheets;
  • Requiring employees to work off the clock during lunches or before/after shifts;
  • Deducting hours or pay for impermissible deductions.

If your employer failed to pay some or all of your wages then you have rights to recover unpaid wages and other relief under federal and state wage laws. These laws may allow you to recover liquidated damages doubling the amount of unpaid wages, out of pocket losses caused by the failure to pay wages, attorney’s fees and court costs.

Additionally, your employer may not retaliate against you for complaining about or reporting unpaid wages. If your employer terminates you or takes other legal action for complaining about unpaid wages or reporting unpaid wages to a government agency then you have rights to recover for lost wages and other harm.

If you believe any of these unlawful acts occurred to you then you should talk to an unpaid wage lawyer in Colorado right away. An employment lawyer can advise you on your rights and how to proceed to receive the wages you earned. Speak to an unpaid wage lawyer as soon as possible. Many wage claims have short periods that require you to act to preserve your claim. The longer you wait to talk to a lawyer the more you risk not receiving the wages you earned.

FLSA overtime pay exemption dealership service advisors

Supreme Court veers on Fair Labor Standards Act exemptions

The Fair Labor Standards Act (FLSA) establishes minimum wage and overtime pay protections for all employees in the United States who are not exempt from its provisions by statutory exemption who work for covered employers or they are individually covered by the statute. FLSA contains many exemptions for minimum wage and overtime pay for a range of jobs and job duties (including lawyers). At stake in these exemptions is the right for employers to pay employees on a salary basis, free from overtime pay. As employees continue to work more hours both inside and outside the workplace, employers have an increasing incentive to expand the scope of these exemptions to avoid paying overtime pay. The Supreme Court handed employers a huge signal that it would be an ally to that goal in Encino Motorcars, LLC v. Navarro decided this month.

The details on Encino Motorcars, LLC v. Navarro

Encino Motorcars deals with whether service advisors are exempt under the FLSA exemptions related to car salespeople, mechanics and partsmen at dealerships. Service advisors are the people you talk to when you take a car to a dealership for repairs or maintenance. Although their jobs definitely involve sales on behalf of the mechanic shop, the question before the Supreme Court was whether the service advisors are mechanics or car salespeople within the meaning of the FLSA’s exemption for these roles.

A 5-4 majority of the Supreme Court held service advisors are exempt from minimum wage and overtime pay requirements under the FLSA’s exemption applying to mechanics and car salespeople. The majority opinion, written by silent but deadly Justice Thomas, provides a fairly tortured reading of the statute and casually abandons precedent to reach its decision.

Statutory FLSA exemption for certain dealership employees

The exemption at issue is found at 29 U.S.C. §213(b)(10)(A) which reads:

any salesman, partsman, or mechanic primarily engaged in selling or servicing automobiles, trucks, or farm implements, if he is employed by a nonmanufacturing establishment primarily engaged in the business of selling such vehicles or implements to ultimate purchasers;

The majority acknowledges that service advisors are neither car salespeople nor mechanics. The majority also acknowledges that they are not partsmen (who manage the parts supply for the dealership) but suggests at least that maybe service advisors are pretty much partsmen. The majority rephrases the statutory exemption to say it applies to, “any salesman…primarily engaged in…servicing automobiles” for which the majority finds they do because they provide service to owners related to their cars.

The core of the majority’s analysis is that:

  1. The service advisor is a salesperson because he or she sells mechanic and maintenance services to car owners; and
  2. The service advisor provides car owners a service by selling repair services and acts as customer service for the mechanic department.

The majority calls this the “best reading” of the statute. Wut.

It’s clear that service advisors are salespeople. They are the sales and customer service face of the mechanic department. However, are they, “primarily engaged in selling or servicing automobiles”? The majority points out that both parties agree they neither sell cars nor repair them. However, the majority insists “servicing automobiles” means anything that services the car physically or customers in seemingly any manner possible–so selling repair services means servicing the automobile.

It’s hard to take the majority’s interpretation with a straight face, especially if you read the sad attempt to change the meaning of the word “or” as the majority does. But let’s pretend the majority is right that the statute really means a “salesman” meets the exemption if he or she is “primarily engaged in…servicing automobiles”. If “servicing automobiles” includes sales and customer service then the statutes doesn’t need to state “selling” as independent of “servicing”. The majority makes part of the statute superfluous in its interpretation which is a statutory interpretation no-no.

The dissent goes into greater detail why the meaning of “servicing” and the roles of the three jobs listed do not find a logical home for the majority’s interpretation. An important aspect raised by the dissent is the legislative history of the FLSA. In 1961 Congress added an exemption for all dealership employees but in 1966 amended the act to just three roles. Unlike many instances where legislative history is plucked over for helpful comments by individual members, here we have the entire body taking a specific act to restrict the exemption within dealerships. Rarely do we get such clear and singular language from Congress. The majority says we don’t need to look at the history when the language is clear. The majority might be right–but the language is clearly not what they say it is.

Narrow interpretation of the statutory exemption

The majority’s casual rewrite of the language of the statute is perhaps beaten by its casual rewrite of precedent. The majority rejects the intermediate appellate court’s argument that FLSA exemptions should be interpreted narrowly. It says, “gee, we just can’t find a textual message in the statute that we should interpret these exemptions narrowly”. The majority importantly opposes the normal cannon that remedial statutes like the FLSA are interpreted broadly in favor of its protected class to give effect to the remedial purpose.

The majority says the remedial purpose needs balance, so a “fair reading” is necessary, citing to precedent in the court’s regressive posture of the past thirty years undermining remedial statutes. The dissent plucks this argument apart by citing to cases in the years following passage of the FLSA explicitly rejecting the premise that the statute’s exemptions should be read expansively and that they are necessarily narrow.

What this will mean for FLSA overtime and minimum wage protections

Sadly, the Supreme Court’s turn away from narrowly reading FLSA exemptions to minimum wage and overtime pay likely means this is the first, rather than the only, exemption that will receive “fair reading” rather than a narrow interpretation. This case will likely serve as the lighthouse for future cases seeking to expand FLSA minimum wage and overtime pay exemptions, illuminating the way for employers to underpay hard-working employees. The direct impact of this case might be small but its long term effect will likely reach a broad group of workers.

This decision is completely unsurprising in every way. The regressive robes in this country, like Thomas and his allies on the bench, are part of the wave of conservative lawmakers, lobbyists and jurists rolling back worker rights and protective measures in many other areas of law. The willingness to so casually rewrite statutes and ignore precedent as the majority does here will only lower the bar for future cases pursuing expansion of overtime pay exemptions.

 

 

 

Denver employment lawyers

Colorado Labor Law

Employees in Denver and other parts of Colorado enjoy protection under federal, state and local laws. Employees enjoy protections under wage laws, labor organizing laws, anti-employment discrimination laws, worker safety laws, benefit plan laws, worker’s compensation, contract law, medical leave laws and a variety of other statutes and regulations. On several areas of labor and employment law, an employee’s claim may fall under both federal and state law. Colorado employment lawyers understand the fit between these laws and how to best represent their clients claims. Filing claims under federal or state law can dictate what courts a worker can enter. Which court hears an employee’s case may affect the available remedies, the available jury pool and other factors that affect the worker’s probability of a successful claim.

Colorado Revised Statutes Title 8: Labor and Industry

Most Colorado labor and employment laws exist within Colorado Revised Statutes title 8. This includes wage and hour laws, workers compensation and the Colorado unemployment benefits system. Like most states, the wage and hour sections of the Colorado Revised Statutes contains some provisions that mirror federal wage and hour laws but also includes provisions expanding upon federal law. The Colorado Revised Statutes provides greater specification on the timing and method of wage payments, such as payroll deductions, pay dates, pay frequency and payment of wages after termination. Workers compensation and unemployment benefits are solely state law issues.

Colorado Revised Statutes Title 24: Government

Title 24, Article 34 of the Colorado Revised Statutes (C.R.S. 24-34-401 et seq) includes the Colorado state law prohibiting employment discrimination. Title 24 of the Colorado Revised Statutes makes it unlawful for an employer, employment agency, or labor union to discriminate on the basis of:

  • Age
  • Disability
  • Creed
  • Color
  • Ancenstry
  • National origin
  • Sex
  • Sexual orientation
  • Race
  • Pregnancy and childbirth

The protected classes of employees under Colorado law closely mirrors federal law with the exception that it specifically prohibits sexual orientation. Currently federal courts hold that sexual orientation is not prohibited by Title VII of the Civil Rights Act or any other federal anti-discrimination law. Colorado law closely follows the meanings and usage of reasonable accommodations, harassment and retaliation related to employment discrimination.

Additional protections for employees under Title 24

This title of the Colorado Revised Statutes also prohibits employers from discharging employees for off premises work activity unless that activity is closely related to a bona fide occupational requirement or the activity would create a conflict of interest for the employer.

Additionally, this section of the Colorado Revised Statutes protects the right to three days of leave for the victim of domestic abuse or sexual assault for medical care, seeking legal help, or protecting himself or herself from further abuse.

A claim under Title 24 of the Colorado Revised Statutes must be filed with the Colorado Civil Rights Commission within six months. The exception is for claims that the employer discharged the employee for off work activity. Those claims may be filed in district court within the applicable limitations period for filing a civil suit. (Galvan v. SPANISH PEAKS REG. HEALTH CENTER, 98 P.3d 949 (Colo. Ct. App. 2004))

Colorado labor and employment laws and employment lawyers

This post is just the tip of the iceberg of the labor and employment laws that cover Colorado workers. If you believe your employer mistreated you in hiring decisions, termination decisions, or during your employment then you should speak with employment lawyers in Denver, Colorado right away about your concerns. Many claims have brief limitations periods that require employees to take action to preserve claims.