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.””
coloradosos.gov · coloradosos.gov
Put it in writing with the PTO policy template for Colorado.
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”
“(A) Full Colorado minimum wage (R. 3.1) 2026 Level (Yearly Calculation) $15.16 per hour”
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”
“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,”
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.”
“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.”
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.”
“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:”
Paid sick leave
Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official sources
Accrual: Colorado Healthy Families and Workplaces Act (HFWA): employees accrue at least one hour of paid sick leave for every 30 hours worked. (Colorado General Assembly, SB20-205 (Healthy Families and Workplaces Act) bill summary)
“Starting January 1, 2021, for employers with 16 or more employees, and starting January 1, 2022, for all employers, the act requires employers to provide paid sick leave to their employees, accrued at one hour of paid sick leave for every 30 hours worked, up to a maximum of 48 hours per year.”
“For the minimum HFWA accrual rate of one hour of leave for every 30 hours worked, up to cap of 48 hours per benefits year (C.R.S. § 8-13.3-403(2)(a)),”
leg.colorado.gov · coloradosos.gov · verified Sep 24, 2026 · 2 official sources
Annual cap: Employees accrue up to 48 hours of HFWA paid sick leave per year (employers may provide more). (Colorado General Assembly, SB20-205 (Healthy Families and Workplaces Act) bill summary)
Same official text as quoted above (see the quote; Colorado General Assembly, SB20-205 (Healthy Families and Workplaces Act) bill summary · leg.colorado.gov).
Same official text as quoted above (see the quote; 7 CCR 1103-7, Rule 3.5.1 (Colorado Wage Protection Rules, effective February 1, 2026) · coloradosos.gov).
leg.colorado.gov · coloradosos.gov · verified Sep 24, 2026 · 2 official sources
Effective date: HFWA paid sick leave began to accrue on January 1, 2021 for employers with 16 or more employees, and has applied to all employers since January 1, 2022. (Colorado General Assembly, SB20-205 (Healthy Families and Workplaces Act) bill summary)
Same official text as quoted above (see the quote; Colorado General Assembly, SB20-205 (Healthy Families and Workplaces Act) bill summary · leg.colorado.gov).
“3.5.1 Accrual of HFWA leave. Paid leave begins to accrue at the commencement of employment or on January 1, 2021, whichever is later.”
leg.colorado.gov · coloradosos.gov · verified Sep 24, 2026 · 2 official sources
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: Recognized (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))
- Implied contract: Recognized (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))
- Good faith and fair dealing: Not recognized (Colorado Pattern Civil Jury Instructions, Chapter 31, Notes on Use, citing Decker v. Browning-Ferris Indus., Inc., 931 P.2d 436 (Colo. 1997))
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.”
“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).”
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.”
“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.”
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.”
“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.””
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.”
Pending verification:
Colorado and its neighbors
| State | Final pay after firing | Final pay after quitting | Minimum wage | Paid sick leave |
|---|---|---|---|---|
| Colorado | Pending verification. Official source (cdle.colorado.gov). | Pending verification. Official source (cdle.colorado.gov). | $15.16 per hour | Yes, statewide |
| Wyoming | Next regular payday | Next regular payday | $7.25 per hour (federal) | Pending verification. Official source (dws.wyo.gov). |
| Nebraska | Pending verification. Official source (nebraskalegislature.gov). | Pending verification. Official source (nebraskalegislature.gov). | $15.00 per hour | Pending verification. Official source (nebraskalegislature.gov). |
| Kansas | Next regular payday | Next regular payday | $7.25 per hour | Pending verification. Official source (ksrevisor.org). |
| Oklahoma | Next regular payday | Next regular payday | $7.25 per hour | Pending verification. Official source (oklahoma.gov). |
| New Mexico | Pending verification. Official source (govinfo.gov). | Pending verification. Official source (govinfo.gov). | $12.00 per hour | Yes, statewide |
| Arizona | 7 working days or the end of the next pay period, whichever is sooner | Next regular payday | $15.15 per hour | Yes, statewide |
| Utah | 24 hours | Next regular payday | $7.25 per hour | Pending 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, 2026 | Amount |
|---|---|
| Taxable wage base per employee | $30,600 |
| Rates for experience-rated employers | 0.56% to 7.34% |
| New-employer rate | 1.53% |
| FUTA credit reduction | None 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)
- Colorado minimum wage (U.S. DOL WHD State Minimum Wage Laws table)
- 7 CCR 1103-14, 2026 PAY CALC Order, Rule 1.2.1(A) (Code of Colorado Regulations, Colorado Secretary of State)
- U.S. DOL WHD State Payday Requirements
- C.R.S. 8-4-103(1)(a) (Colorado Wage Act, CDLE compilation revised August 6, 2025)
- Colorado administratively issued Wage Order / COMPS (U.S. DOL WHD meal period table)
- 7 CCR 1103-1, COMPS Order #40, Rule 5.1
- Colorado Minimum Pay Standards (COMPS) Order (U.S. DOL WHD rest period table)
- 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)
- Wage Protection Rules 7 CCR 1103-7, Rule 2.17.2 (edition effective January 1, 2025)
- Colorado General Assembly, SB20-205 (Healthy Families and Workplaces Act) bill summary
- 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)
- 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)
- 7 CCR 1101-2, Rule 7.3.2.2
- CDLE, Notice of Potential Availability of Unemployment Insurance Benefits (form)
- U.S. Department of Labor: State labor offices
Checked Sep 27, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error