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Colorado Employment Laws for Employers

Reviewed Sep 27, 2026 10 of 13 rules verified against official sources How we verify

Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use

Final pay and unused vacation

Unused vacation (PTO) at separation

Do you have to pay out unused vacation when someone leaves?Yes, alwaysVerified Sep 24, 2026 · 2 official pages from the same agency

In Colorado, earned vacation pay counts as wages. If an employer provides paid vacation, it must pay all earned vacation at separation. Policies may cap accrual at one year's worth of vacation pay or more, but they may not forfeit any earned (accrued) vacation pay. (C.R.S. § 8-4-101(14)(a)(III), as quoted in Wage Protection Rules 7 CCR 1103-7, Rule 2.17 (effective February 1, 2026))

““Vacation pay earned in accordance with the terms of any agreement. If an employer provides paid vacation for an employee, the employer shall pay upon separation from employment all vacation pay earned and determinable in accordance with the terms of any agreement between the employer and the employee.””

C.R.S. § 8-4-101(14)(a)(III), as quoted in Wage Protection Rules 7 CCR 1103-7, Rule 2.17 (effective February 1, 2026) · coloradosos.gov

coloradosos.gov · coloradosos.gov

Put it in writing with the PTO policy template for Colorado.

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Pending verification. Not verified for Colorado yet, so no answer is shown. Each link opens the official source to check.

Wages, paydays and breaks

Minimum wage

What is the minimum wage?$15.16 per hourVerified Sep 27, 2026 · 2 official sources

Colorado minimum wage is $15.16 per hour. (Colorado minimum wage (U.S. DOL WHD State Minimum Wage Laws table))

“Colorado Basic Minimum Rate (per hour): $15.16”

Colorado minimum wage (U.S. DOL WHD State Minimum Wage Laws table) · dol.gov

“(A) Full Colorado minimum wage (R. 3.1) 2026 Level (Yearly Calculation) $15.16 per hour”

7 CCR 1103-14, 2026 PAY CALC Order, Rule 1.2.1(A) (Code of Colorado Regulations, Colorado Secretary of State) · coloradosos.gov

dol.gov · coloradosos.gov

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Paydays

How often do you have to pay?MonthlyVerified Sep 25, 2026 · 2 official sources

Colorado requires regular pay periods of no longer than one calendar month or 30 days, whichever is longer. (U.S. DOL WHD State Payday Requirements)

“Colorado X Connecticut X 4”

U.S. DOL WHD State Payday Requirements · dol.gov

“All wages or compensation, other than those mentioned in section 8-4-109, earned by any employee in any employment, other than those specified in subsection (3) of this section, shall be due and payable for regular pay periods of no greater duration than one calendar month or thirty days, whichever is longer,”

C.R.S. 8-4-103(1)(a) (Colorado Wage Act, CDLE compilation revised August 6, 2025) · cdle.colorado.gov

dol.gov · cdle.colorado.gov

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Meal breaks

Do adult employees get a meal break?30 minutesVerified Sep 27, 2026 · 2 official sources

Employees are entitled to an uninterrupted, duty-free meal period of at least 30 minutes (½ hour) when the shift exceeds 5 consecutive hours; when an uninterrupted meal period is impractical, an on-duty meal must be allowed and fully compensated. (Colorado administratively issued Wage Order / COMPS (U.S. DOL WHD meal period table))

“Colorado ½ hour if work shift exceeds 5 consecutive hours. On-duty meal period counted as time worked and permitted when nature of work prevents relief from all duties.”

Colorado administratively issued Wage Order / COMPS (U.S. DOL WHD meal period table) · dol.gov

“Meal Periods. Employees shall be entitled to an uninterrupted and duty-free meal period of at least a 30-minute duration when the shift exceeds 5 consecutive hours.”

dol.gov · coloradosos.gov

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Rest breaks

Do adult employees get paid rest breaks?10 min per 4 hoursVerified Sep 27, 2026 · 2 official sources

Paid 10-minute rest period for each 4 hours of work or major fraction thereof, in the middle of the work period as practicable. (Colorado Minimum Pay Standards (COMPS) Order (U.S. DOL WHD rest period table))

“Colorado Paid 10-minute rest period for each 4 hours of work, or major fractions thereof. As practicable the rest period should be in the middle of the work period.”

Colorado Minimum Pay Standards (COMPS) Order (U.S. DOL WHD rest period table) · dol.gov

“Rest Periods. Every employer shall authorize and permit a compensated 10minute rest period for each 4 hours of work, or major fractions thereof, for all employees, as follows, except as provided in exemptions or variances in Rule 2:”

dol.gov · coloradosos.gov

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Paid sick leave

Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official sources

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Ending employment

At-will employment

Yes. Colorado follows at-will employment, with these exceptions (Colorado Pattern Civil Jury Instructions, Chapter 31, Instruction 31:4, Notes on Use, citing Continental Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo. 1987)):

Public policy exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official sources

Colorado recognizes a tort claim for wrongful discharge in violation of public policy (Martin Marietta Corp. v. Lorenz): a fired employee has a claim if the discharge contravenes a clear mandate of public policy. (Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge), Instruction 31:12, Notes on Use, citing Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992); Order, No. 1:15-cv-02418 (D. Colo.), discussing Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992))

“This instruction and Instruction 31:13 are predicated on Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992), where the court identified the elements of a claim for wrongful discharge under the public-policy exception to the employment at will doctrine.”

Colorado Pattern Civil Jury Instructions, Chapter 31 (Wrongful Discharge), Instruction 31:12, Notes on Use, citing Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992) · coloradojudicial.gov

“The Colorado Supreme Court first recognized a claim for termination in violation of public policy in Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992).”

Order, No. 1:15-cv-02418 (D. Colo.), discussing Martin Marietta Corp. v. Lorenz, 823 P.2d 100 (Colo. 1992) · govinfo.gov

coloradojudicial.gov · govinfo.gov

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Implied contract exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official sources

Colorado recognizes an implied-contract exception: termination policies in a handbook or manual can bind the employer if they were an offer the employee accepted by starting or continuing work (Continental Air Lines v. Keenan); a clear and conspicuous disclaimer defeats the claim. (Colorado Pattern Civil Jury Instructions, Chapter 31, Instruction 31:4, Notes on Use, citing Continental Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo. 1987); Order, No. 1:19-cv-00694-WJM (D. Colo. Sept. 28, 2020), citing Cont'l Air Lines v. Keenan, 731 P.2d 708, 711 (Colo. 1987))

“The Colorado Supreme Court first recognized the implied-contract exception to the employment-at-will doctrine in Keenan, 731 P.2d at 711-12. Under this theory, the employee must show that the employer’s promulgation of termination policies or procedures was an offer and that the employee’s initial or continued employment constituted an acceptance of that offer.”

Colorado Pattern Civil Jury Instructions, Chapter 31, Instruction 31:4, Notes on Use, citing Continental Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo. 1987) · coloradojudicial.gov

“To show the existence of an implied employment contract, an employee must show that, in promulgating a written employment manual or policy or making a similar oral policy statement, the employer was making an offer to the employee.”

Order, No. 1:19-cv-00694-WJM (D. Colo. Sept. 28, 2020), citing Cont'l Air Lines v. Keenan, 731 P.2d 708, 711 (Colo. 1987) · govinfo.gov

coloradojudicial.gov · govinfo.gov

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Good faith and fair dealing exception: recognized?Not recognizedVerified Sep 24, 2026 · 2 official sources

Colorado does not allow a tort claim for breach of the covenant of good faith and fair dealing in an employment contract (Decker v. Browning-Ferris); the public-policy wrongful discharge tort serves that role. (Colorado Pattern Civil Jury Instructions, Chapter 31, Notes on Use, citing Decker v. Browning-Ferris Indus., Inc., 931 P.2d 436 (Colo. 1997); Order, No. 1:15-cv-02418 (D. Colo.), discussing Decker v. Browning-Ferris Industries of Colorado, Inc., 931 P.2d 436 (Colo. 1997))

“A breach of a covenant of good faith and fair dealing in an employment contract does not give rise to a tort claim.”

Colorado Pattern Civil Jury Instructions, Chapter 31, Notes on Use, citing Decker v. Browning-Ferris Indus., Inc., 931 P.2d 436 (Colo. 1997) · coloradojudicial.gov

“Furthermore, in Decker v. BrowningFerris Industries of Colorado, Inc., 931 P.2d 436 (Colo. 1997), the court was deciding whether to permit a claim for breach of implied covenant of good faith and fair dealing in the employment contract context, just as in the insurance contract context. In rejecting this new theory of recovery, the court stated that “[t]o the extent the contents of employment contracts and insurance contracts are similar, the tort of wrongful termination of an employment contract in violation of public policy represents an appropriate analog to the tort of bad faith breach of the implied covenant of good faith and fair dealing of an insurance contract.””

Order, No. 1:15-cv-02418 (D. Colo.), discussing Decker v. Browning-Ferris Industries of Colorado, Inc., 931 P.2d 436 (Colo. 1997) · govinfo.gov

coloradojudicial.gov · govinfo.gov

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Separation notice

Do you have to give a separation notice when someone leaves?YesVerified Sep 24, 2026 · 2 official sources

Colorado employers must give every worker, upon separation from employment, a notice of the availability of unemployment insurance (hard copy or electronic). CDLE's form 'Notice of Potential Availability of Unemployment Insurance Benefits' also asks for the employee's dates, earnings and the reason for separation. (7 CCR 1101-2, Rule 7.3.2.2)

“Notice Provided To Employee Upon Separation. The employer must also provide such notice to every worker upon separation from employment.”

“NOTICE OF POTENTIAL AVAILABILITY OF UNEMPLOYMENT INSURANCE BENEFITS ATTENTION EMPLOYER: You are legally required to provide a form, in hard copy or electronic format, to an employee upon separation.”

CDLE, Notice of Potential Availability of Unemployment Insurance Benefits (form) · cdle.colorado.gov

coloradosos.gov · cdle.colorado.gov

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Pending verification:

Colorado and its neighbors

StateFinal pay after firingFinal pay after quittingMinimum wagePaid sick leave
ColoradoPending verification. Official source (cdle.colorado.gov).Pending verification. Official source (cdle.colorado.gov).$15.16 per hourYes, statewide
WyomingNext regular paydayNext regular payday$7.25 per hour (federal)Pending verification. Official source (dws.wyo.gov).
NebraskaPending verification. Official source (nebraskalegislature.gov).Pending verification. Official source (nebraskalegislature.gov).$15.00 per hourPending verification. Official source (nebraskalegislature.gov).
KansasNext regular paydayNext regular payday$7.25 per hourPending verification. Official source (ksrevisor.org).
OklahomaNext regular paydayNext regular payday$7.25 per hourPending verification. Official source (oklahoma.gov).
New MexicoPending verification. Official source (govinfo.gov).Pending verification. Official source (govinfo.gov).$12.00 per hourYes, statewide
Arizona7 working days or the end of the next pay period, whichever is soonerNext regular payday$15.15 per hourYes, statewide
Utah24 hoursNext regular payday$7.25 per hourPending verification. Official source (laborcommission.utah.gov).

Verified rules only; open a state for its sources.

What an employee costs in Colorado

Every employer pays Social Security 6.2% (Publication 15), Medicare 1.45% (Topic 751) and FUTA (Topic 759). Colorado adds its unemployment insurance tax:

Colorado payroll tax, 2026Amount
Taxable wage base per employee$30,600
Rates for experience-rated employers0.56% to 7.34%
New-employer rate1.53%
FUTA credit reductionNone for 2025 or 2026
Estimated employer taxes on a $40,000 salary$3,570 (8.9%)

Of the $3,570, $468 is Colorado unemployment insurance tax (1.53% on the first $30,600 of wages) and $3,102 is federal tax.

The estimate counts FUTA at 0.6% of the first $7,000 ($42 per employee), which assumes the full FUTA credit (Topic 759).

Estimate for a new employer and a full year; check with your payroll provider. Sources: U.S. DOL, State UI Laws, July 2026, page 1; U.S. DOL, FUTA credit reductions.

Federal wage enforcement in Colorado

In FY2021 to FY2025, the federal Wage and Hour Division concluded 622 cases in Colorado (n = 622), 508 with violations, finding $6,318,339 in back wages owed to 4,695 employees and assessing $1,581,431 in civil money penalties (DOL enforcement data). Overtime back wages were part of 40.4% of the violation cases. OSHA opened 5,515 inspections in the same years (OSHA data). Enforcement data is not a violation rate: it shows where federal investigators looked. Wage violations by industry.

Colorado has no OSHA-approved State Plan for private workplaces, so federal OSHA enforces workplace safety for private employers in Colorado (OSHA: State Plans).

Changes coming in 2027

  • Minimum wage, from Jan 1, 2027: $15.71/hour (now $15.16/hour). Confirmed by the agency (cdle.colorado.gov).
  • Tipped minimum wage, from Jan 1, 2027: $12.69/hour. Confirmed by the agency (cdle.colorado.gov).
  • Minimum wage (Boulder (city), CO), from Jan 1, 2027: $18.17/hour (now $16.82/hour). Scheduled in law (bouldercolorado.gov).
  • Minimum wage (Boulder County (unincorporated), CO), from Jan 1, 2027: the new amount is not announced yet (bouldercounty.gov).

Changelog

  • Sep 24, 2026: first verified, 11 rules.
  • Sep 26, 2026: verified: payday frequency, now backed by two independent official sources. (cdle.colorado.gov)

Questions about Colorado employment laws

What is the minimum wage in Colorado?

Colorado minimum wage is $15.16 per hour. (Colorado minimum wage (U.S. DOL WHD State Minimum Wage Laws table))

Is Colorado an at-will state?

Yes. Colorado follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 3, and 2 are recognized in Colorado (Colorado Pattern Civil Jury Instructions, Chapter 31, Instruction 31:4, Notes on Use, citing Continental Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo. 1987)).

Sources (16)

Checked Sep 27, 2026 · How we verify every rule · Report an error