The Colorado Labor Law Guide

Minimum wage is the lowest hourly pay rate employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but states and local jurisdictions may adopt higher rates. Employers must pay the highest applicable wage.

Colorado Statewide Minimum Wage

• $15.16 per hour, effective January 1, 2026

• This rate is adjusted annually based on inflation.

Local Minimum Wages in Colorado (Effective January 1, 2026)

Some Colorado cities and counties have adopted higher minimum wages than the statewide rate. Employers must comply with the most protective applicable law.

• Denver:

  • $19.29 per hour

• Boulder (City):

  • $16.82 per hour

• Boulder County:

  • $16.82 per hour

• Edgewater:

  • $18.17 per hour

→ Learn more about Deputy's labor law compliance software

The tipped minimum wage is the lowest hourly cash wage an employer may pay a tipped employee, provided that the employee’s tips combined with the cash wage equal at least the applicable full minimum wage for the work location. If tips are insufficient, the employer must make up the difference.

Colorado Statewide

• $12.14 per hour (effective January 1, 2026) Applies unless a higher local tipped minimum wage is required.

Local Tipped Minimum Wages

Some Colorado localities require higher tipped minimum wages. Employers must comply with the most protective applicable law based on where the employee performs work.

• Denver: $16.27 per hour (with tip credit)

• Edgewater: $13.50 per hour (with tip credit) Note: Edgewater froze its tipped minimum wage at the 2025 rate, increasing the allowable tip credit to $4.67.

• Boulder County (unincorporated areas): $13.80 per hour (with tip credit)

• City of Boulder: $13.80 per hour (with tip credit)

Employer Obligation

Employers must ensure that a tipped employee’s cash wage plus tips equals at least the full minimum wage applicable to the employee’s work location. If it does not, the employer is required to pay the difference.

In Colorado, non-exempt employees are entitled to overtime pay if they work more than 40 hours in a workweek, more than 12 hours in a workday, or more than 12 consecutive hours, regardless of when the workday begins or ends.

Overtime pay is generally calculated at 1.5 times the employee’s regular rate of pay, unless an exemption or exception applies under Colorado law.

Colorado law requires employers to provide meal and rest breaks to non-exempt employees under the Colorado Overtime and Minimum Pay Standards (COMPS) Order.

Meal Breaks

Employees must receive an unpaid 30-minute meal break for any scheduled shift longer than five hours. To the extent practical, meal breaks should not be scheduled during the first or last hour of the shift.

A meal break may be unpaid only if the employee:

• Is completely relieved of all duties,

• Receives an uninterrupted 30-minute break, and

• Is free to leave the worksite.

If the nature of the work prevents an employee from being fully relieved of duties, the employer must provide an on-duty meal period, which:

• Must be paid, and

• Must allow the employee to eat a full meal while working.

Rest Breaks

Employees are entitled to a paid 10-minute rest break for every four hours worked or major fraction thereof. Rest breaks should be taken, where practical, near the middle of each four-hour work period.

Rest breaks count as hours worked for both minimum wage and overtime purposes. Employers may require employees to remain on the premises during rest breaks.

Employers must authorize and permit rest breaks. If a required rest break is not provided, the employer must pay the employee an additional 10 minutes of compensable work time for each missed break.

Coverage

Colorado’s meal and rest break requirements apply to nearly all employers, regardless of industry, unless a specific exemption applies under the COMPS Order.

→ Find out how Deputy can help you simplify meal and rest break compliance

Vacation Leave

Colorado law does not require private employers to provide paid or unpaid vacation leave. However, if an employer chooses to offer vacation leave:

• Earned Wages: Earned and determinable vacation time is considered wages under Colorado law.

• No Forfeiture: Once vacation time is earned, it generally cannot be forfeited, and any agreement requiring forfeiture of earned vacation is void.

• Payout on Separation: All earned but unused vacation must be paid out upon separation (resignation or termination).

• Accrual Rules and Caps: Employers may define how and when vacation is earned and may set an accrual cap so employees stop earning additional vacation once the cap is reached until some leave is used (caps are a lawful alternative to forfeiture). Policies should be clearly communicated (ideally in writing) and consistently applied.

Paid Sick Leave (HFWA)

Colorado’s HFWA requires all employers, regardless of size, to provide paid sick leave.

• Accrual Rate: 1 hour per 30 hours worked.

• Annual Cap: Employers are not required to allow use of more than 48 hours per year.

• Carryover: Employees may carry forward up to 48 hours of unused accrued sick leave to the next year (employers may still cap annual use at 48 hours).

• Separation: Employers are not required to pay out unused paid sick leave at separation unless their policy provides otherwise.

Holidays

Colorado law does not require private employers to provide paid or unpaid holiday leave, and premium pay for holiday work is not required unless an employer’s policy or agreement provides it. 

• Holiday Pay (No Work Performed): Pay for a holiday when no work is performed does not count as “hours worked” toward overtime.

• Holiday Incentive Pay (Work Performed): If an employer pays holiday incentive pay (extra compensation because the employee worked the holiday), Colorado law requires it to be included in the employee’s regular rate for overtime calculations.

→ Learn more about Deputy's leave management software

Colorado Child Labor Laws (CYEOA)

Colorado’s child labor requirements are governed by the Colorado Youth Employment Opportunity Act of 1971 (CYEOA), which is the state’s primary law regulating the employment of minors. CYEOA works alongside federal child labor laws under the Fair Labor Standards Act (FLSA). Employers must comply with whichever law—state or federal—is more protective of the minor.

General Hour Limits (All Minors)

Under CYEOA, minors generally may not work more than:

• 40 hours in a workweek, or

• 8 hours in any 24-hour period

Limited exceptions apply, including authorized emergencies and certain seasonal, piece-rate agricultural or harvest work, which are subject to additional conditions and caps. Employers should not rely on these exceptions unless they clearly apply.

Minors Under 16 — Time-of-Day Restrictions

When federal law applies, minors under age 16 may not work:

• Before 7:00 a.m.

• After 7:00 p.m., or after 9:00 p.m. from June 1 through Labor Day

When state law applies but federal law does not, CYEOA restricts minors under 16 from working:

• Between 9:30 p.m. and 5:00 a.m. before a school day, with limited exceptions (such as babysitting).

Minors Under 16 — School Days and School Weeks

During school hours

• Minors under 16 may not work during school hours unless a valid exception or approval applies.

On school days (outside school hours)

• Up to 3 hours per school day (including Fridays), when federal law applies.

In school weeks

• Up to 18 hours total during any week that includes school days.

When state law applies but federal law does not

• CYEOA permits up to 6 hours of work in a day for minors under 16 if the following day is a school day, and longer hours only when the next day is not a school day.

School Release Permits and Programs (Ages 14–15)

No general work permit is required in Colorado. However:

• Work during school hours is not permitted before age 14.

• For minors ages 14–15:

  • If federal law applies, school-hours work is allowed only through a U.S. Department of Labor–approved work experience, career exploration, or work-study program.

  • If federal law does not apply or allows the work, Colorado requires a school release permit, which may be issued by the minor’s school for a limited period, with parental consent and based on the minor’s best interests.

Key Compliance Reminder

Because Colorado and federal child labor laws overlap, employers must always apply the stricter rule. Compliance with federal law alone does not guarantee compliance with CYEOA.

Hiring

Colorado enforces robust transparency and anti-discrimination requirements during the hiring process.

Job Postings (Pay Transparency)

Under Colorado’s Equal Pay for Equal Work Act, employers must include the following information in all job postings (internal and external) for positions that could be performed in Colorado:

• Compensation: The hourly rate or salary range the employer reasonably expects to pay.

• Benefits: A general description of benefits, including bonuses, commissions, health coverage, and retirement benefits.

• Deadlines: The expected application closing date.

Job Applications

Ban the Box (Chance to Compete Act)

Employers may not ask about an applicant’s criminal history on an initial job application. Criminal history inquiries may generally occur only after an initial interview.

Age-Related Inquiries (Job Application Fairness Act)

Employers may not request age, date of birth, or age-identifying information on an initial application. Application questions may not be used to screen applicants based on age.

Background Checks

Employers conducting background checks must comply with the federal Fair Credit Reporting Act (FCRA), including obtaining written authorization and following required pre-adverse and adverse action procedures.

Protected Characteristics (Anti-Discrimination)

Colorado law prohibits discrimination based on, among other characteristics:

• Race, color, and protective hairstyles

• Religion and creed

• Sex (including pregnancy, childbirth, and related conditions)

• Sexual orientation

• Gender identity and gender expression

• National origin and ancestry

• Disability (physical or mental)

• Age (40 and over)

• Marital status

Marijuana & Drug Testing

Although recreational marijuana is legal in Colorado, employers may maintain drug-free workplace policies. Employers may test for marijuana and may take adverse action based on positive results, subject to applicable disability and accommodation laws.

Termination of Employment

At-Will Employment

Colorado is an at-will employment state. Employers may terminate employment at any time for any lawful reason, provided the termination is not discriminatory or retaliatory.