The Colorado Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates. 

As of 2024, the minimum wage is $14.42 per hour for most employees.

Cities that have higher minimum wage as of 2024:

• Denver: $18.29 per hour

• Edgewater: $15.02 per hour

• Boulder County: $15.69 per hour

Starting January 1st, 2025, the minimum wage will be $14.81 for most employees.

Cities that have a higher minimum wage effective January 1st, 2025:

• Denver: $18.81 per hour

• Edgewater: $16.52 per hour

• Boulder County: $16.57 per hour

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Tipped minimum wage is the lowest hourly pay rate employers are legally obligated to pay employees who earn a significant portion of their income through tips. 

As of 2024, the tipped minimum wage is $11.40 per hour for most employees.

Cities that have higher tipped minimum wage as of 2024:

• Denver: $15.27 with tip credit per hour

• Edgewater: $12 with tip credit per hour

• Boulder County: $12.67 with tip credit per hour

Starting January 1st, 2025, the tipped minimum wage will be $11.79 for most employees. 

Cities that have a higher minimum wage effective January 1st, 2025:

• Denver: $15.79 with tip credit per hour

• Edgewater: $13.50 with tip credit per hour

• Boulder County (only unincorporated areas): $13.55 with tip credit per hour
  

• City of Boulder: $12.55 with tip credit per hour

In Colorado, non-exempt employees who work over 40 hours per workweek or over 12 hours in a day, are entitled to overtime pay. Most employees receive overtime pay at 1.5 times their regular pay for all hours worked over 40 in a workweek.

Colorado’s meal and rest break laws require employers to give employees a 30-minute meal break after working five hours. Meal breaks are unpaid if the employee has an uninterrupted, duty-free meal break. 

However, if the nature of the job prevents employees from taking a break from all duties, employers are required to pay for an on-duty meal. 

Covered employers include those in these industries:

• Retail and service 

• Food and beverage, 

• Commercial support service 

• Dry cleaning and housekeeping 

• Health and medical industries 

Employers also must provide rest breaks. Employees can take a paid ten-minute rest break for every four hours they work (or “major fraction thereof”), ideally in the middle of the work period. Employers can require employees to remain on the premises.

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Vacation leave
Colorado does not require employers to provide paid time off to their employees. The employer can choose to offer vacation leave at their discretion. Should an employer provide vacation leave, they must adhere to the following guidelines:

• Employers must pay out earned vacation time when an employee’s employment is terminated or resigns;

• Employers may not force employees to use their accrued vacation time prior to their resignation; and

• Employers must communicate their vacation policies in writing.

Employers can set their own policies for how vacation leave works, such as how much is available, how it is accrued, and whether there is a cap on how much can be saved.

Paid Sick Leave
Since January 1, 2022, Colorado employers must provide paid sick leave to their employees. An accrued hour of paid sick leave is applied for every 30 hours worked. There is a maximum of 48 hours per year. 

Note: employees are not required to pay out unused sick leave when an employee is no longer with the company. 

Holidays
Colorado law does not require private employers to offer holiday leave. Employers in the private sector are not obligated to provide paid or unpaid time off for holidays and may require employees to work on holidays. Additionally, Colorado wage law neither mandates nor prohibits extra pay for holiday work. When employees are compensated for a non-working holiday, those hours do not count toward overtime unless actual work was performed on the holiday.

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State child labor laws
In Colorado, no employer is allowed to have a minor work more than 40 hours within a workweek or more than 8 hours in any 24-hour period—unless there is a business emergency. No minors under 16 are permitted to work between 9:30 PM and 5 AM, unless the following day is not a school day. 

Laws for minors under 16 during school hours:

• They cannot work more than three hours on a school day

• They cannot work more than 18 hours during a school week

• There is a limited of eight hours on a non-school day

On school days, during school hours, no minors under 16 are allowed to work unless they have a school release permit, which can only be issued by the superintendent of the school district where they are enrolled. 

Federal child labor laws
Minors who are 14 and 15 years old can only work before and after school hours (after 7 AM or before 7 PM. However, they can work until 9 PM from June 1st to Labor Day. 

They cannot work more than 4 hours a day on school days and 18 hours per school week, as well as more than 8 hours a day and more than 40 hours on non-school days. 

However, if a minor is 16 or older, they can work for any number of hours at any time.

Hiring
In Colorado, employers must be transparent and fair throughout the hiring process. Job posters must also accurately represent the position. 

The state follows the Fair Credit Reporting Act (FCRA) and federal laws with background checks. Employers are required to get written consent from candidates before conducting background checks.

Although recreational marijuana is legalized in Colorado, employers still have the right to enforce drug-free workplace policies and/or conduct drug testing. 

Colorado’s Anti-Discrimination Act (CADA) requires employers to provide equal employment opportunities to candidates and prohibits discrimination in employment based on the following:

• Race

• Color

• Religion

• Sex

• Sexual orientation

• National origin

• Disability 

• Age

Firing
Colorado supports “at-will” employment laws. All Colorado employers have the right to terminate employees at will for nearly any reason and no reason at all, with the exception of discrimination, harassment, and retaliation.