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.
Facts reviewed against primary sources in September 2026
| Requirement | Colorado | Detail |
|---|---|---|
| State minimum wage | $15.16/hr | Denver: $19.29/hr; Edgewater and unincorporated Boulder County set their own rates |
| Daily overtime | After 12 hrs/day | Also 40 hrs/week and any 12 consecutive hours - whichever produces the greater pay |
| Paid sick leave (HFWA) | 48 hrs/year | Accrues at 1 hr per 30 hrs worked; immediate for public health emergencies |
| Final paycheck | Immediately on termination | Employer-initiated separations are due immediately (6 hours after the next workday starts if the payroll unit is not operational, 24 hours if off-site). A voluntary quit is paid on the next regular payday. Under C.R.S. 8-4-109(3), wages still unpaid 14 days after written demand cost the greater of twice the amount owed or $1,000, and three times if the failure was wilful |
| Non-competes | $130,014+ threshold | Enforceable only above this annual salary (adjusted annually) |
| FAMLI premium | 0.88% of wages | Split evenly: 0.44% employee, 0.44% employer (employers with 10+ employees). Falls to 0.86% on January 1, 2027 |
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 Colorado-Compliant TodayColorado's layered compliance requirements - daily overtime, FAMLI, pay transparency, and HFWA sick leave - demand careful administration on every payroll cycle.
Weekly overtime after 40 hours, daily overtime after 12 hours, and the 12-consecutive-hour trigger all calculated on every payroll run, applying whichever produces the greater pay.
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 ($19.29/hr in 2026) 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 has three local minimum wages above the state floor, not just Denver. Denver is $19.29/hr, and Edgewater and unincorporated Boulder County each set their own rate. A national employer hiring into Boulder County on the assumption that only Denver differs will underpay. WorkGenius applies the correct rate for each worker based on where the work is actually performed.
Colorado's COMPS Order requires overtime pay after 40 hours in a workweek, after 12 hours in a workday, or after 12 consecutive hours - applying whichever produces the greater pay, not 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 $130,014/year (2026 threshold, adjusted every January; non-solicits require $78,008.40). 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 $19.29/hr in 2026, 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 Colorado's classification and compliance rules. We prepare compliant contracts and payroll setup.
Onboarded with Colorado-compliant contracts, benefits enrolled, payroll running from day one.
Payroll runs on Colorado rules. 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 two more triggers: time-and-a-half after 12 hours in a single workday, and after 12 consecutive hours of work regardless of when the workday starts. Whichever of the three produces the higher pay is what the worker gets. WorkGenius calculates all three 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, rising to 16 weeks where there are serious childbirth-related complications. For 2026 the total premium is 0.88% of wages, falling to 0.86% on January 1, 2027. Employers with 10 or more employees split it evenly with workers (0.44% each). Employers with fewer than 10 employees owe no employer share at all, but must still withhold the employee's 0.44% and remit it quarterly with wage data. WorkGenius withholds and remits all FAMLI contributions quarterly.
Only in limited circumstances. Since 2022, non-competes are void unless the employee earns above $130,014/year for 2026 and the agreement protects legitimate trade secrets. The threshold is adjusted every January. Non-solicitation agreements have a lower bar, 60% of that figure, or $78,008.40 for 2026. Two procedural points carry real teeth: the covenant must be no broader than reasonably necessary to protect trade secrets, and the worker must be given separate written notice before signing. Getting it wrong costs $5,000 per worker plus actual damages and fees. WorkGenius drafts Colorado-compliant employment agreements that protect your business within the law.
No. Colorado does not use an ABC test. Under C.R.S. 8-70-115 a worker is presumed to be an employee until the employer shows two things: that the worker is free from control and direction in performing the service, and that the worker is customarily engaged in an independent trade, occupation or business of the same nature. CDLE assesses that on the totality of the circumstances rather than a rigid checklist. The agency actively enforces misclassification, particularly in gig work, construction and professional services. WorkGenius assesses classification risk for all Colorado workers before engagement.
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