Colorado Employment and Labor Laws

Keeping up with state employment and labor laws can substantially complicate compliance efforts. Here’s what employers in Colorado need to know.

Colorado's employment laws take a proactive stance on workplace fairness, transparency, and employee well-being. With detailed requirements around pay equity, leave, hiring practices, and non-compete agreements, the state sets a high bar for employer accountability and worker protections

When it comes to talent and workforce management, Colorado-based employers need to comply with the following state employment laws:

Pay transparency and equity
Final paychecks and PTO payouts
Paid leave and work breaks
Anti-discrimination and harassment

The below information was last updated May 7, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.

Colorado Labor Laws

A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.

Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.

Is Colorado a Right-to-Work State?

Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).

Colorado currently has no right-to-work laws or regulations. Although, under section 14(b) of the National Labor Relations Act (NLRA), Colorado can pass a right-to-work law in the future if it chooses.

Colorado Employment Laws

Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.

Colorado Wage Laws

Colorado Minimum Wage	The state of Colorado uses its own minimum wage rate of $14.81, including a tipped minimum wage rate of $11.79 for employees who earn tips with their base pay. Note: Colorado also has local minimum wage rates and provisions for non-emancipated minor, agricultural, nursing home, direct care, FLSA EAP exempt, highly technical computer, and highly compensated workers.
Colorado Overtime Pay Laws	Overtime pay in Colorado is calculated at one-and-a-half times the regular pay rate for work performed over 40 hours in a workweek, 12 hours in a workday, or 12 consecutive hours without regard for the start and end time of the workday. However, the state has exemptions for certain types of workers, including the ski industry, youth employment, and state government. As of 2024, the Colorado Supreme Court determined that when employers determine an employee’s regular pay rate for overtime purposes, they must include holiday incentive pay.
Colorado Pay Equity Law	Under the Equal Pay for Equal Work Act, all employers in Colorado must ensure employees with similar job duties are paid the same wage rate regardless of sex.
Colorado Pay Transparency Law	Colorado’s Equal Pay for Equal Work Act also made the state one of 14 (plus Washington D.C.) to have pay transparency laws. Specifically, the act requires employers to disclose compensation in all job postings and notices, both internal and public. This disclosure must include information about benefits and how and when to apply. Employers must also disclose available job opportunities to all employees and disclose who was selected to fill the position.
Colorado Final Paycheck Law	In Colorado, employees who voluntarily resign from a job must receive their final paycheck by the next regular payday. However, if an employee is involuntarily terminated, they must receive their final paycheck immediately unless the payroll department is not operational at the time of separation.
Colorado PTO Payout Laws	Colorado currently requires employers to pay out any earned and determinable vacation pay upon separation. It does, however, allow the use of "use-it-or-lose-it" policies if the policy: is included in an agreement between the employer and employee that determines when vacation pay is earned doesn’t deprive vacation time or the wages associated with that time; and requires any earned and determinable vacation pay to be paid upon employment separation

Colorado Leave Laws

Colorado Paid Sick Leave (PSL)	Colorado currently requires all private employers to provide all employees with 48 hours of paid, protected sick leave under its Healthy Families and Workplaces Act. Employees can earn one hour of paid sick leave for every 30 hours worked.
Colorado Paid Family and Medical Leave (PFML)	Colorado is one of over a dozen states with a PFML program. The state’s Family and Medical Leave Insurance (FAMLI) program is funded by contributions from employers (with 10 or more employees) and their employees. Program contributions may be split 50/50. Depending on the reason and need involved, eligible employees may take up to 12 weeks of leave, though those experiencing complications from pregnancy or childbirth may receive an additional four weeks of leave, bringing the total to 16 weeks.
Colorado Maternity Leave	Colorado doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Employees typically rely on a separate type of employer-provided leave, the federal Family and Medical Leave Act (FMLA), or a state-mandated PFML program to obtain maternity leave.
Colorado Voting Leave Law	Under Colorado's state voting leave law, Colorado-based employers must provide employees with up to two hours of paid leave to vote in an election if the employee doesn’t have three consecutive hours available while polls are open at the beginning or end of the shift. Furthermore, the employer may specify the hours the employee may be absent, but if the employee requests, the hours must be at the beginning or end of the work shift.

Colorado Workplace Health and Safety Management

All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).

While some states adopt additional health and safety regulations, Colorado is an "OSHA plan" state, meaning it defers to OSHA's requirements when addressing health and safety matters, such as having an emergency action plan or providing medical and first aid supplies.

Colorado Work Break Laws

Under Colorado's state meal and rest break laws, employers must provide:

Uninterrupted, duty-free meal periods of at least 30 minutes for shifts over five consecutive hours; and
A paid 10-minute rest period for every four hours worked, or a major fraction of that time

Meal periods must begin at least one hour after the shift starts and one hour before the shift ends, though unpaid, non-work time meal periods may be allowed if employees are completely relieved of all duties, allowed to leave the work site, and allowed to do personal activities.

Rest periods must not include work and should be, as practically as possible, in the middle of each four-hour work period. Employers don’t, however, have to let employees leave the work site.

Finally, Colorado employers must also provide reasonable, unpaid break time (or permit an employee to use paid break time) each day to express milk for a nursing child for up to two years after the child’s birth and at a location near the work area that’s not a restroom but intended for privacy.

Colorado Harassment and Workplace Discrimination Laws

As described by the Colorado Anti-Discrimination Act and enforced by the state’s Civil Rights Division, employers in Colorado are prohibited from discriminating against employees based on:

Race
Sex
Religion
Disability
National Origin

Sexual Orientation
Gender Identity
Age
Marital Status
Ancestry

Colorado also requires employers to comply with specific anti-harassment mandates, as outlined in the Colorado Protecting Opportunities and Worker’s Rights Act.

Employers must, for example, set up a program to prevent harassment, deter future harassers, and protect employees from harassment. As a part of the program, the employer must make prompt, reasonable efforts to investigate claims, take remedial action, and communicate the program's existence to supervisory and nonsupervisory employees.

Colorado doesn't, however, require employees to complete any harassment or discrimination training courses.

Other Colorado Employment Laws

Colorado Non-Compete Agreement Laws	Colorado is one of several states that limit the use of non-compete agreements. Generally, C.R.S. 8-2-113 prohibits non-compete agreements that restrict the right of a person to receive compensation for performing any skilled or unskilled labor for an employer. For example, any non-compete restricting a physician from practicing medicine is void. However, effective August 10, 2022, non-compete agreements are only permissible to protect trade secrets for employees that earn at least the threshold amount for “highly compensated workers” and permit customer non-solicitation restrictions for employees that earn at least 60 percent of the threshold amount for “highly compensated workers. Moreover, a non-compete might be enforceable if it falls within one of the following four exceptions: a contract for the purchase or sale of a business or its assets a contract for the protection of trade secrets a contract providing for recovery of the expense of educating and training an employee who has served an employer for less than two years executive and management personnel and officers and employees who constitute their professional staff
Colorado Retirement Plan Laws	Colorado is one of a handful of states with a mandatory retirement plan law. The Colorado SecureSavings program requires employers meeting the following criteria to register and facilitate employee access to the state-run savings program: have been in business for at least two years with five or more employees; and offer no qualified retirement plan
Colorado Pre-Employment Inquiries Laws	The Colorado Chance to Compete Act prohibits employers from: stating in a job application or advertisement that a person with a criminal history may not apply asking about an applicant’s criminal history on an initial job application requiring applicants to report their criminal history on an initial job application Furthermore, the Employment Opportunity Act restricts employers from using an employee's consumer credit information from a credit check for employment purposes unless it’s substantially related to their current or potential job.
Colorado Lactation Laws	The Workplace Accommodations for Nursing Mothers Act requires employers to make reasonable efforts to provide lactating employees with a room or location close to the work area (other than a toilet stall) where each employee can express breast milk in privacy.

This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.

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