Colorado Employment Law Deadlines & Compliance 2026
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Required policies, penalty exposures, cost breakdown, and FAQ — cite-checked against state statute.
Colorado Employment Law At a Glance
Key compliance facts for Colorado employers, drawn from primary statutory citations. For the full handbook-grade guide with required policies, penalty schedules, and FAQ, upgrade to a DocBird Pro handbook.
At-Will Status
At-will employment
2 exceptions
- Public policy exception: Colorado recognizes wrongful discharge in violation of public policy when an employee is fired for: (1) exercising a job-related right or privilege, such as filing a workers' compensation claim; (2) performing a public duty or obligation, such as jury service; or (3) refusing to perform an act that violates a clear statutory mandate. Courts require an articulable public policy grounded in constitutional or statutory authority.
- Implied contract exception: Colorado courts have held that specific procedural promises in employee handbooks — such as progressive discipline requirements, "good cause" standards, or internal appeal procedures — can constitute implied employment contracts. Employers must include conspicuous at-will disclaimers and obtain signed acknowledgments to avoid creating implied contract claims under Colorado common law.
Minimum Wage
$14.81/hr (eff. 2026-01-01)
Colorado minimum wage adjusts annually on January 1 based on the CPI-W under Amendment 70 (2016) and COMPS Order. The 2026 rate is $14.81 per hour statewide. Denver and other jurisdictions may set higher local rates. The tip credit is $3.02 per hour for tipped employees earning above the applicable threshold.
Paid Sick Leave
6 days/year (state mandate)
Bereavement Leave Law
No state mandate
Key Colorado Employment Statutes
Colorado Minimum Wage Order (COMPS)
The Colorado Overtime and Minimum Pay Standards Order (COMPS) governs minimum wage, overtime, meal and rest periods, and recordkeeping for most Colorado employees. It extends overtime protections to white-collar workers earning under the salary threshold and requires 10-minute paid rest breaks every 4 hours worked. Employers must post COMPS notices in Spanish and English and provide written notice of wage rates to employees at hire and upon any change.
Healthy Families and Workplaces Act (HFWA)
Requires all Colorado employers to provide paid sick and safe leave accruing at 1 hour per 30 hours worked, up to 48 hours annually. Employers may front-load all 48 hours at the start of the year rather than tracking accrual. Leave carryover is required up to the accrual cap. The Colorado Division of Labor Standards and Statistics (DLSS) investigates retaliation complaints and may assess penalties of $500 to $2,000 per violation plus employee remedies.
Colorado Anti-Discrimination Act (CADA)
Prohibits discrimination and harassment in employment based on disability, race, creed, color, sex, sexual orientation, gender identity, religion, age, national origin, ancestry, and marital status. Applies to employers with 1+ employees — broader coverage than federal Title VII. The Colorado Civil Rights Division investigates charges within 180 days. Remedies include reinstatement, back pay, compensatory damages up to $300,000, and attorney fees.
Non-Compete Limitations (HB 22-1317)
Colorado significantly restricted non-compete agreements in 2022. Non-competes are now enforceable only for employees earning above a salary threshold (currently $123,750 annually for 2026, inflation-adjusted) and only to the extent reasonably necessary to protect trade secrets. Non-solicitation agreements require a lower salary threshold. Employers must provide written notice and a copy of the agreement at least 14 days before the start of employment or before a promotion. Violations are Class 2 misdemeanors.
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