SB 121 — Overtime Threshold for Agricultural Employees

SecondNOTE: Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.

26-0800.01This Reneebill Leonehas x2695been SENATEprepared BILLfor 26-121the SENATEsignatures SPONSORSHIPof Rodriguezthe andappropriate Simpson,legislative Peltonofficers B., Bright, Catlin, Frizell, Kirkmeyer, Liston, Pelton R., Rich HOUSE SPONSORSHIP Martinez and Winterthe T.,Governor. Barron, Bottoms, Bradfield, Bradley, Brooks, Caldwell, DeGraaf,Duran,GarciaSander,GonzalezR.,Hartsook,Johnson,Keltie,Mauro,McCluskie, Richardson, Slaugh, Soper, Suckla, Taggart, Weinberg, Woog d d e 6 a 0 S n , U g 1 H d r e p Senate Committees House Committees R A Business, Labor, & Technology Agriculture, Water & Natural Resources 3 n 6 A BILL FOR AN ACT d 0 S e 2 C ONCERNING THE ESTABLISHMENT OF A THRESHOLD OF FIFTY -SIX U R 5 H n 1i HOURS IN A WORKWEEK FOR WHEN AN AGRICULTURAL d p d A EMPLOYER IS REQUIRED TO PAY OVERTIME TO AN n m AGRICULTURAL EMPLOYEE .

ATo Billdetermine Summarywhether ethe nGovernor 6has msigned 0the (Note:bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

ThisSENATE summaryBILL applies26-121 toBY thisSENATOR(S) billRodriguez as introduced and doesSimpson, TPelton nB., ,Bright, notreflectanyamendmentsthatmaybesubsequentlyadopted.IfthisbillCatlin, AFrizell, UKirkmeyer, 2Liston, EPelton iR., hRich; passes third reading in the house of introduction, a bill summary that S a r applies to the reengrossed version of this bill will be available at R M r http://leg.colorado.gov.) 3 The bill requires an agricultural employer to pay an agricultural employee overtime pay for time worked in excess of 60 hours in a i a 6 workweek.

ealso 0REPRESENTATIVE(S) TMartinez dand ,Winter NT., 2Barron, 2Bottoms, EBradfield, dBradley, hBrooks, ShadingCaldwell, denotesDeGraaf, HOUSEDuran, amendment.Garcia Sander, GonzalezR.,Hartsook,Johnson,Keltie,Mauro,Richardson,Slaugh,Soper, Suckla, Taggart, Weinberg, Woog, McCluskie.

DoubleCONCERNINGTHEESTABLISHMENTOFATHRESHOLDOFFIFTY underlining-SIXHOURSIN denotesAWORKWEEKFORWHENANAGRICULTURALEMPLOYERISREQUIRED SENATETO amendment.PAY OVERTIME TO AN AGRICULTURAL EMPLOYEE .

SBe dit aenacted Capitalby lettersthe orGeneral boldAssembly &of italic numbers indicate new material to be added to existing law.e M Dashes through the wordsState orof numbersColorado: indicate deletions from existing law.

mSECTION A1. Be it enacted by the General Assembly of the State of Colorado:

SECTION1.In Colorado Revised Statutes, repeal and reenact, with amendments, 8-6-120 as follows:

InColoradoRevisedStatutes,repealandreenact, with amendments, 8-6-120 as follows:

OvertimeOvertimewagesforagriculturalemployees-definitions wages for agricultural employees - definitions - rules.

(1) ASA S USED IN THIS SECTI:NSECTION: (a) "AGRICULTURALEMPLOYEE " HAS THE MEANING SET FORTH IN SECTION 8-2-206 (1)(b).

(b)(a) "AGRICULTURALEMPLOYER"A GRICULTURAL EMPLOYEE " HASTHEHAS MEANINGSETTHE MEANING SET FORTH IN SECTION________ 8-3-104Capital (1).letters or bold & italic numbers indicate new material added to existing law;

(c)dashes "Dthrough ECISIONMAKINGwords MANAGERor "numbers MEANSindicate ANdeletions INDIVIDUALfrom PRIMARILYexisting ENGAGEDlaw INand AGRICULTURALsuch WORKmaterial WHOis :not part of the act.

(I)SECTION IS8-2-206 PAID(1)(b). AT LEAST THE MINIMUM SALARY THRESHOLD FOR CERTAIN EXEMPTIONS CONTAINED IN THE PROVISIONS CONCERNING AGRICULTURAL WORKERS IN THE DIRECTOR S RULES RELATED TO C OLORADO OVERTIME AND MINIMUM PAY STANDARDS ;

(II)(b) INOTEMPLOYEDONASEASONALORTEMPORARYBASIS"AGRICULTURAL ;ANDEMPLOYER (III)"HAS ASPRIMARYDUTIES THAT REQUIRE THE ROUTINEMEANING EXERCISESET OFFORTH INDEPENDENT JUDGMENT AND DISCRETION IN MATTERSSECTION OF8-3-104 SIGNIFICANCE(1). AND WHO EITHER:

(A)(c) SUPERVISES"D TWOECISIO-MAKING ORMANAGER MORE" FULLMEANS TIME EMPLOYEES ,OR (B) REPORTSDIRECTLYTOANOWNERORTOANEXECUTIVE -LEVEL EMPLOYEE WHO REPORTS DIRECTLY TO AN OWNERINDIVIDUAL WHOPRIMARILY ROUTINELYENGAGED EXERCISES INDEPENDENT JUDGMENT AND DISCRETION IN MATTERSAGRICULTURAL OFWORK SIGNIFICANCEWHO IN: MANUAL OR IN NONMANUAL LABOR .

(d)(I) "FAMILYMEMBERIPAIDATLEASTTHEMINIMUMSALARYTHRESHOLDFORCERTAIN "MEANSACHILDEXEMPTIONS ,SIBLIN,SPOUSECONTAINED PARENTIN ,THE -2-PROVISIONS 121CONCERNING AUNTAGRICULTURAL ,WORKERSINTHEDIRECTOR UNCLE,'SRULESRELATEDTO NEPHEWC ,OLORADOOVERTIMEAND NIECE,MINIMUM FIRSTPAY COUSINSTANDARDS ,; GRANDCHILD , OR GRANDPARENT BY BLOOD ,ADOPTION ,OR MARRIAGE .

(2)(II) BEGINNINGJANUARYI 1,NOT 2027ANEMPLOYED AGRICULTURALON EMPLOYERA SHALLPAYANAGRICULTURALEMPLOYEEATANOVERTIMERATEFORANYSEASONAL TIMEOR WORKEDTEMPORARY INBASIS EXCESS;AND OF(III) FIFTSIXASPRIMARYDUTIESTHATREQUIRETHEROUTINEEXERCISEOF HOURSINDEPENDENT INJUDGMENT AAND WORKWEEKDISCRETION ,EXCEPTIN FORMATTERS ANOF AGRICULTURALSIGNIFICANCE EMPLOYEEAND WHO IS:EITHER :

(a)(A) PRINCIPALLYS ENGAGEDUPERVISES INTWO THEOR RANGEMORE PRODUCTIONFULL-TIME OFEMPLOYEES LIVESTOCK;OR ON(B) THER OPENEPORTS RANGE,DIRECTLY ASTO DESCRIBEDAN I29OWNER CFROR 780.323TO AN EXECUTIVE LEVEL EMPLOYEE WHO REPORTS DIRECTLY TO 780.329;AN OWNER WHO ROUTINELY EXERCISES INDEPENDENT JUDGMENT AND DISCRETION IN MATTERS OF SIGNIFICANCE IN MANUAL OR IN NONMANUAL LABOR .

(b)(d) "FAMILY MEMBER "MEANS A DECISION-MAKINGCHILD MANAGER,SIBLING,SPOUSE,PARENT WHO, ISAUNT EMPLOYED, BYUNCLE AN, AGRICULTURALNEPHEW EMPLOYER, ;ORNIECE, (c)AFIRST FAMILYMEMBEROFAFAMILYOWNEROFANAGRICULTURALCOUSIN EMPLOYER, GRANDCHILD , OR GRANDPARENT BY BLOOD ,ADOPTION ,OR MARRIAGE .

(2) B EGINNING JANUARY 1, 2027,AN AGRICULTURAL EMPLOYER SHALL PAY AN AGRICULTURAL EMPLOYEE AT AN OVERTIME RATE FOR ANY TIME WORKED IN EXCESS OFFIFTY-SIXHOURSINAWORKWEEK EXCEPT FOR AN AGRICULTURAL EMPLOYEE WHO IS :

(a) PINCIPALLYENGAGEDINTHERANGEPRODUCTIONOFLIVESTOCK ON THE OPEN RANGE ,AS DESCRIBED IN29 CFR 780.323 TO 780.329;

(b) A DECISIONMAKING MANAGER WHO IS EMPLOYED BY AN AGRICULTURAL EMPLOYER ;OR PAGE 2-SENATE BILL 26-121 (c) A FAMILY MEMBER OF A FAMILY OWNER OF AN AGRICULTURAL EMPLOYER .

Fines pursuant to enforcement - wage theft enforcementfund-created-administrativelienandlevyofemployerenforcement fund - created - administrative lien and levy of employer assets - wage claim payments from the fund - definition - rules.

(1)(a)(I)(A)(1) XCEPTASPROVIDEDINSUBSECTION(a) (1)(a)(I)(OF(I) (A)XCEPT AS PROVIDED IN SUBSECTION (1)(a)(I)(B)OF THIS SECTION, if a case against an employer is enforced pursuant to section 8-4-111, anyemployerany employer who without good faith legal justification failstopaythewagesoffails eachofto theemployer'semployeesshallforfeittopay the wages of each of the employer's employees shall forfeit to the people of the state of Colorado a fine in an amount determined bytheby the director or hearing officer but no more than the sum of fiftyfiftydollars dollars per day for each such failurefailuretopayeachemployee,commencingfromthedate to pay each employee, commencing from the date that such wages first became due and payable.

(B) FORF OR AN AGRICULTURAL EMPLOYER ,AS, AS DEFINED IN SECTION -3-8-3-104(1),WHO 121,WITHOUTAGOODFAITHLEGALJUSTIFICATION 8-3-104,WILLFULLY (1), WHO ,WITHOUT A GOOD FAITH LEGAL JUSTIFICATION , WILLFULLY FAILS TO PAY THE WAGES OF EACH OF THE AGRICULTURAL EMPLOYER S EMPLOYEES AT LEAST THREE TIMES IN A FIYEARFIVE -YEAR PERIOD , THE TOTAL AMOUNTAMOUNTFORFEITEDTOTHEPEOPLEOFTHESTATEOF FORFEITEDC OLORADOPURSUANT TO THESUBSECTION PEOPLE(1)(a)(I)(A)OF OFTHIS THESECTION STATEMAY OF C OLORADOPURSUANTTOSUBSECTION (1)(a)(I)(OFTHISSECTIONMAY BE INCREASED BY TEN PERCENT.PERCENT .

(I.5) An employer found to have misclassified an employee as a nonemployee in a way that may affect a wage and hour payment or reportingobligationunderastate,federal,orlocallaw,rule,orregulationreporting shallpayafineinthefollowingamounts,increasedbythedirectorbyruleobligation byunder Januarya 1,state, 2028,federal, andor local law, rule, or regulation shall pay a fine in the following amounts, increased by the director by rule by January 11, every2028, otherand by rule byJanuary1 everyother year based on the prior two years' increase, if any, in the United States department of labor's bureau of labor statistics consumer price index, or a successor index,forDenver-Aurora-Lakewoodforurbanwageearnersandclericalindex, workers,for perDenver-Aurora-Lakewoodforurbanwageearnersandclericalworkers,per employee, in addition to any other relief ordered:

(E) F OR AN AGRICULTURAL EMPLOYER ,AS DEFINED IN SECTION 8-3-1048-3-104(1),WITHATHIRDORSUBSEQUENTWILLFULVIOLATIONWITHINFIVE (1)WITHYEARS A, THIRDTHE ORFINE SUBSEQUENTUNDER WILLFULSUBSECTION VIOLATION(1)(a)(I.5)(COF WITHINTHIS FIVESECTION YEARS,THEIS FINEPAGE UNDERSUBSECTION3-SENATE (1)(a)(I.5)(OFTHISSECTIONBILL IS26-121 INCREASED BY TWENTY THOUSAND DOLLARS ;AND (F) F OR AN AGRICULTURAL EMPLOYER ,AS, AS DEFINED IN SECTION 8-3-1048-3-104(1),WITHATHIRDORSUBSEQUENTWILLFULVIOLATIONTHATISNOT (1)WITH A THIRD OR SUBSEQUENT WILLFUL VIOLATION THAT IS NOT REMEDIED WITHIN SIXTY DAYS AFTER THE DIVISIONSDIVISION S FINDING,THE FINEUNDERSUBSECTIONFINE (1)(a)(I.5)(OFTHISSECTIONISINCREASEDBYUNDERSUBSECTION FORTY(1)(a)(I.5)(DOFTHISSECTIONISINCREASEDBYFORTY THOUSAND DOLLARS .

This actappliestotimeworkedact applies to time worked and contractsenteredintoorrenewedonoraftertheeffectivedateofcontracts thisact.entered into or renewed on or after the effective date of this act.

The general assembly finds, -4- 121 determines, and declares that this act is necessary for the immediate preservationofthepublicpeace,health,orsafetyorforappropriationsforpreservation of the public peace, health, or safety or for appropriations for PAGE 4-SENATE BILL 26-121 the support and maintenance of the departments of the state and state institutions.

-5-____________________________ 121____________________________ James Rashad Coleman, Sr.

Julie McCluskie PRESIDENT OF SPEAKER OF THE HOUSE THE SENATE OF REPRESENTATIVES ____________________________ ____________________________ Esther van Mourik Vanessa Reilly SECRETARY OF CHIEF CLERK OF THE HOUSE THE SENATE OF REPRESENTATIVES APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 5-SENATE BILL 26-121