SB26-121 Overtime Threshold for Agricultural Employees

A few weeks ago, SB26-121 Overtime Threshold for Agricultural Employees passed both the Senate and House before being signed by Governor Polis on May 4. The bill addresses the unintended consequences created by Colorado’s previous agricultural overtime structure, making it a significant win for farmers, ranchers, and agricultural employees.  

Under the previous system, farmers and ranchers had to cap worker hours in response to rising labor costs, resulting in increased shift-based schedules on operations. These extra shifts were difficult to fill because Colorado already lacks the domestic workforce needed to fill agricultural jobs, which likely resulted in the opposite effect of the intended overtime “fix”.  

A University of California, Berkeley study found that after California’s agricultural overtime threshold moved to 40 hours, workers averaged 3–5 fewer hours per week, losing roughly $100 in weekly pay and $2,000 annually. Similar results were found in Oregon, where farms operating under a 55-hour threshold also saw reductions in worker hours and earnings. 

 At the same time, the national labor market remains tight, with low unemployment, low labor force participation, and limited domestic interest in agricultural work. U.S. agriculture simply cannot meet its entire labor needs to sustain production under rigid systems that mirror the traditional 9-5 industries. Without this new law, Colorado risked losing workers to neighboring states that offered greater earning opportunities, but often less worker protection. This law will keep workers working in Colorado Agriculture and keep family farmers and ranchers in business.