Colorado has quietly built one of the most complex employment compliance frameworks in the Mountain West: daily overtime rules, a state-run paid family leave program, and mandatory pay ranges in every job posting. WorkGenius becomes your legal employer — keeping you compliant across Denver, Boulder, and Colorado Springs.
Colorado's Equal Pay for Equal Work Act — effective January 2021 — requires employers to disclose compensation ranges in every job posting that could be performed by a Colorado-based employee. This applies even if the role is remote and the company is headquartered elsewhere. Getting this wrong has led to significant enforcement actions.
Get AB5-Compliant TodayColorado's layered compliance requirements — daily overtime, FAMLI, pay transparency, and HFWA sick leave — demand careful administration on every payroll cycle.
Daily overtime (after 12 hours) and weekly overtime (after 40 hours) calculated correctly on every payroll run — including the 12th consecutive-hour rule.
Colorado's Family and Medical Leave Insurance premiums for both employer and employee withheld, remitted quarterly to the CDLE, and leave claims supported.
All Colorado job postings include compliant salary ranges and benefit descriptions. Internal promotion opportunities communicated to employees as required.
Healthy Families and Workplaces Act accrual (1 hr/30 hrs worked), carryover tracking, and public health emergency leave entitlements — automated.
Denver's minimum wage ($18.29/hr in 2024) applied automatically for workers in the city and county of Denver.
Non-compete clauses enforceable only at qualifying salary levels with required consideration — all employment agreements reviewed against Colorado law.
Colorado stacks daily overtime, state-run paid family leave (FAMLI), and one of the strictest pay transparency laws in the country — on top of standard federal rules. WorkGenius runs every Colorado payroll through all three layers automatically.
Colorado has layered state-specific employment rules on top of federal law across multiple areas.
Colorado's COMPS Order requires overtime pay after 12 hours in a single workday and after 40 hours in a workweek — whichever triggers first. This differs from the federal standard of weekly overtime only.
Colorado requires employers of all sizes to provide up to 48 hours of paid sick leave per year. Leave accrues at 1 hour per 30 hours worked and can be used for illness, medical appointments, or domestic violence situations.
Non-compete agreements are void unless the employee earns above $123,750/year (2024 threshold, adjusted annually). Even then, the agreement must be for the protection of trade secrets and provide adequate consideration.
Denver sets its own minimum wage, adjusted annually. At $18.29/hr in 2024, it's significantly higher than the state rate. Employers with workers physically located in Denver must pay the higher rate.
From first conversation to fully compliant employment — typically within days.
Workers, roles, locations, and start dates. We tailor the setup to your needs.
Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.
Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.
Yes — this is the most common surprise for out-of-state employers. If a role can be performed by someone in Colorado (even fully remote), Colorado's Equal Pay for Equal Work Act applies. The posting must include a salary range and benefits description. Companies that excluded "Colorado applicants" from remote postings were specifically targeted by the CDLE. WorkGenius ensures all qualifying job postings are compliant.
Federal overtime only kicks in after 40 hours in a week. Colorado's COMPS Order adds daily overtime — employees must be paid time-and-a-half after 12 hours in a single day, and for all hours worked on the 12th consecutive day. WorkGenius calculates both thresholds on every payroll run.
Colorado's Family and Medical Leave Insurance (FAMLI) provides up to 12 weeks of paid leave for qualifying family or medical reasons. In 2024, the total premium is 0.9% of wages. Employers with 10 or more employees split this 50/50 with workers (0.45% each). Smaller employers pay only the employee share on behalf of workers. WorkGenius withholds and remits all FAMLI contributions quarterly.
Only in limited circumstances. Since 2022, non-competes are void unless the employee earns above $123,750/year (the threshold adjusts annually) and the agreement protects legitimate trade secrets. Garden-leave clauses or other consideration are required. Non-solicitation agreements have a lower threshold. WorkGenius drafts Colorado-compliant employment agreements that protect your business within the law.
Colorado uses a modified ABC test for independent contractor classification, though it's generally considered less strict than California's AB5. That said, the CDLE actively enforces misclassification — particularly in gig work, construction, and professional services. WorkGenius assesses classification risk for all Colorado workers before engagement.
WorkGenius handles AB5 classification, California payroll, benefits, and every other compliance requirement so you don't have to. Get started today.
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