As discussed here, Colorado’s SB26-121 originally proposed significant changes to the state’s agricultural overtime requirements. Signed into law on May 4, 2026, the new law takes effect January 1, 2027 and establishes a 56-hour workweek threshold before most agricultural employees must receive overtime pay. This replaces the lower thresholds that were scheduled to take effect under Colorado’s existing framework. SB26-121 also increases penalties for certain wage theft and employee misclassification violations.
As introduced, SB26-121 would have created a uniform 60-hour overtime threshold for agricultural employees. During the legislative process, however, the bill was amended, and the enacted version ultimately adopted a 56-hour weekly overtime threshold.
For Colorado agricultural employers, the new law provides greater certainty regarding overtime obligations and may offer additional flexibility during peak production periods when longer workweeks are common.
Employers should use the lead time before the January 2027 effective date to evaluate labor budgets, review payroll practices and workforce scheduling, and confirm that employee classifications are accurate. Employers should also coordinate with payroll providers or internal payroll teams to ensure systems are prepared to apply overtime correctly under the new 56-hour threshold when the law takes effect.