At a glance
- Minimum wage: $15.16 an hour, rising to $15.71 on January 1, 2027.
- Tipped cash wage: $12.14.
- Overtime: daily and weekly rules apply.
- Final paycheck if fired: immediately.
- Paid sick leave: Yes. Paid family leave program: Yes.
What Colorado employers need to know
Colorado writes its wage rules into a single annual document, the COMPS Order, and updates its minimum wage and exempt salary threshold every January. It was the first state to require pay ranges in job postings, it requires paid sick leave from every employer, and its FAMLI program now pays wage replacement for family and medical leave. Denver sets a much higher local minimum wage, and several other cities and counties have followed.
Colorado minimum wage
| Minimum wage | $15.16 |
|---|---|
| Tipped cash wage | $12.14 |
| Next change | $15.71 (tipped $12.69) on January 1, 2027 |
| Local rates | Denver, Edgewater, and unincorporated Boulder County set local minimum wages above the state rate. |
Pay the highest rate that applies where the employee works: federal, state, or local. For comparison, neighboring states pay Wyoming ($7.25), Nebraska ($15.00), Kansas ($7.25), Oklahoma ($7.25), New Mexico ($12.00), Utah ($7.25), Arizona ($15.15). See every state side by side in our minimum wage by state table, and convert between hourly and annual pay with the salary to hourly calculator.
Colorado overtime rules
Overtime at 1.5 times the regular rate after 40 hours in a week, 12 hours in a workday, or 12 consecutive hours regardless of the workday.
Exempt salary test: Exempt employees must earn at least $1,111.23 a week ($57,784 a year) in 2026 under the COMPS Order.
Work out overtime owed with our overtime calculator, compare states in overtime laws by state, and check classification with our guide to exempt vs non-exempt employees.
Colorado meal and rest break laws
Meal breaks: A 30-minute uninterrupted, duty-free meal period for shifts over 5 hours, under the COMPS Order. If the job makes that impossible, an on-duty paid meal period is allowed.
Rest breaks: A paid 10-minute rest period for every 4 hours worked or major fraction of 4 hours.
Many states have stricter break rules for minors. Compare adult rules nationwide in break laws by state, and total up shifts with the time card calculator.
Colorado final paycheck law
| If you fire or lay off the employee | Immediately. If the payroll unit isn't open, within 6 hours of the start of its next workday (24 hours if it's off-site). |
|---|---|
| If the employee quits | By the next regular payday. |
| Unused vacation or PTO | Required. Earned vacation can't be forfeited, so it must be paid at separation. |
Build the deadline into your offboarding checklist. Our offboarding guide covers the full process, the PTO payout calculator works out the amount, and the final paycheck laws by state table compares every state.
Colorado paid sick leave and family leave
Paid sick leave: Healthy Families and Workplaces Act: 1 hour for every 30 hours worked, up to 48 hours a year, for employers of every size, plus extra public health emergency leave when declared.
Paid family and medical leave: FAMLI: up to 12 weeks of paid family and medical leave (16 for pregnancy or childbirth complications), funded by premiums usually split between employer and employee.
Federal FMLA: employers with 50 or more employees within 75 miles must also give eligible employees up to 12 weeks of unpaid, job-protected leave. Read our FMLA guide, and compare states in paid leave laws by state.
Hiring, pay transparency, and payroll setup
Pay transparency: Required for all employers: pay range and a general description of benefits in every posting, and notice of promotion opportunities.
New hire reporting: Report each new hire within 20 days of the hire date, the federal deadline.
State income tax withholding: Yes. Register with the state tax agency before the first payroll.
Our pay transparency laws guide explains posting rules in more depth, and our job description templates include pay data for 50 common roles.
What trips up Colorado employers
- Colorado's exempt salary threshold is well above the federal level and rises every year.
- Earned vacation can't be forfeited, so use-it-or-lose-it policies don't work here.
- Job postings must include a pay range and benefits, and internal promotion opportunities must be announced to staff.
- Denver, Edgewater, and unincorporated Boulder County set higher local minimum wages.
Sources and the agency to contact
- Colorado Department of Labor and Employment (state labor agency)
- US Department of Labor: state minimum wage laws
- US Department of Labor: minimum wages for tipped employees by state
- US Department of Labor: state meal period requirements
General information for US employers, not legal advice. Laws change and have exceptions by industry, employer size, and city. Confirm current rules with the state agency or employment counsel before you rely on them.
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<a href="https://www.hrtally.com/state-labor-laws/colorado/">Colorado labor laws for employers (2026)</a> (source: HRTally)
Suggested citation: HRTally Research Team. "Colorado labor laws for employers (2026)." HRTally, updated October 20, 2026. https://www.hrtally.com/state-labor-laws/colorado/
Frequently asked questions
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Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.