Holiday Incentive Pay
The Colorado Supreme Court recently held that holiday incentive pay should be included in the calculation of the “regular rate of pay” when determining overtime rates. In other words, if employees are provided an incentive to work on holidays—for example, a $5.00 per hour premium to work on Christmas—then this amount should be included within the employee’s overtime calculations.
It is important to note that the court also observed that “Colorado law is not identical or substantially similar to the FLSA with regard to the issue.” This is because federal law excludes “extra compensation provided by a premium rate paid for work by the employee on . . . holidays,” whereas “Colorado law provides no such exclusion or credit.” See Hamilton v. Amazon.com Servs. LLC, No. 24SA12 (Co. Sept. 9, 2024) for additional information.
