State Labor Law Guide

Colorado
Labor Laws

What workers in Colorado need to know about minimum wage, daily overtime, paid sick leave, and their rights when an employer has not paid them fairly.

CO COLORADO
$15.16
Minimum Wage
$22.74
Overtime Rate
DAILY
Overtime Trigger
48 HRS
Paid Sick Leave/Yr
STATE
Governing Law

Minimum Wage $15.16 / HR

Colorado's minimum wage for 2026 is $15.16 per hour. This applies to all employees covered by the Colorado Overtime and Minimum Pay Standards Order, known as the COMPS Order, which covers all private sector work in the state. Non-hourly workers, including salaried, piece-rate, and commission employees, must also receive at least $15.16 per hour for all time worked. Your pay structure does not change your right to minimum wage for every hour you are on the job.

Tipped employees may be paid a lower cash wage, with a tip credit of up to $3.02 per hour. But tips and wages combined must always reach at least $15.16. If they do not, your employer must make up the difference. Employers cannot pay you below $12.14 per hour in direct wages regardless of what you receive in tips.

Several cities in Colorado have set minimum wages above the state rate. Your employer must pay whichever rate is highest for your actual work location. Minors may be paid 15% below the state minimum in certain situations.

COMPS Order: Colorado's COMPS Order covers all private sector employers, not just certain industries. If you work in Colorado's private sector, you are covered by these rights regardless of your industry or job title.

Overtime Laws DAILY + WEEKLY

Colorado calculates overtime daily and weekly, which puts it ahead of federal law. Under the COMPS Order, you earn overtime at 1.5 times your regular rate when you work more than 40 hours in a week, more than 12 hours in a single workday, or more than 12 consecutive hours regardless of when the workday starts. Your employer must use whichever calculation results in higher pay for you. This means a long shift can trigger overtime pay even in a week where your total hours stay under 40.

Colorado also prohibits comp time. Your employer cannot give you time off instead of overtime pay. Overtime must be paid in money at 1.5 times your regular rate. This applies to salaried employees too. Being paid a salary does not remove the overtime requirement unless you genuinely qualify as exempt under the COMPS Order.

The overtime rate is calculated from your regular rate, which is not simply your base hourly wage. Shift differentials, piece-rate pay, commissions, and nondiscretionary bonuses all count toward your regular rate. If your employer has been calculating overtime only on your base rate while ignoring those other forms of pay, your overtime has been undercalculated and you may be owed the difference.

Exemptions from overtime require specific job duties, not just a title or a salary. To qualify as exempt under the executive, administrative, or professional categories, an employee must both perform qualifying duties and earn at least $1,111.23 per week ($57,784 annually) in 2026. Job title alone is never enough. Many workers in Colorado are incorrectly classified as exempt and never receive overtime they have earned.

12-Hour Rule: If you regularly work 10- or 12-hour shifts, Colorado's daily overtime rule may apply to you even if your weekly hours never exceed 40. Hours worked past 12 in a single day must be paid at 1.5 times your regular rate.

Meal & Rest Breaks MANDATED

Colorado requires both meal periods and paid rest breaks under the COMPS Order. For shifts over five hours, you must receive an uninterrupted 30-minute meal period during which you are completely relieved of all duty and free to use that time as you choose. If the nature of your work makes an uninterrupted break impractical, you must be allowed to eat while working and that time must be paid.

Paid rest breaks are also required. For every four hours of work, you must receive a 10-minute paid rest period. The number of breaks you are owed scales with your shift length: one break for shifts over two hours up to six, two breaks for over six up to ten hours, three breaks for over ten up to fourteen hours, and so on. Rest periods must be in the middle of each four-hour work period as much as possible. These are paid breaks, meaning you remain on the clock during that time.

If your employer fails to authorize and permit a required rest period, extra pay is owed for that time. Routinely skipping or shortening rest breaks is a wage violation. When combined with missed meal periods, the amounts owed can add up quickly, especially if the violation has been happening for months or years.

Rest Periods Are Paid: Unlike meal breaks, rest periods in Colorado are paid time. Your employer cannot require you to clock out for a 10-minute rest break. If that has been happening, those minutes of unpaid time add up to a wage claim.

Paid Sick Leave CO SPECIFIC

Colorado's Healthy Families and Workplaces Act (HFWA) requires all Colorado employers to provide paid sick leave to their employees. You earn one hour of paid sick leave for every 30 hours you work, up to 48 hours per year. This accrual starts from your first day of work. Part-time, temporary, and seasonal workers are all covered.

Paid sick leave can be used when you or a family member are sick, injured, or need a medical appointment. It can also be used when you or a family member is a victim of domestic violence, sexual assault, or harassment and needs to seek help or move to a safe location. Your employer cannot require you to find a replacement for your shift as a condition of using sick leave.

You have the right to use your accrued sick leave and return to work without negative consequences. Retaliating against an employee for using HFWA leave is illegal. If your employer has disciplined you, cut your hours, or taken any other negative action because you used paid sick leave, that retaliation is a separate violation on top of any leave issues.

48 Hours Per Year: Colorado's paid sick leave law applies to all employers, regardless of size. If your employer has not been tracking or providing sick leave accrual, they may owe you compensation for leave you earned but never received.

Equal Pay & Wage Transparency CO SPECIFIC

Colorado's Equal Pay for Equal Work Act prohibits employers from paying employees differently based on sex or sex plus another protected characteristic for substantially similar work. Substantially similar work is determined by skill, effort, and responsibility under similar working conditions. This goes beyond job title. If you and a colleague do the same work in practice but are paid differently, that may be a violation.

Colorado also has the Wage Theft Transparency Act, which makes all final determinations of wage and hour violations by the Division of Labor public record. If your employer has been found in violation before, that information is publicly available. Employers who repeatedly violate Colorado wage law face increasing scrutiny and public consequences, not just private settlements.

Colorado employers are also required to keep wage and hour records for each employee for at least three years, plus the duration of any related wage claim. If an employer cannot produce accurate records to show your hours worked and wages paid, the Division treats this as evidence supporting your claim. Poor or missing records do not protect the employer; they work against them.

Time Worked: Colorado law defines compensable time broadly. Pre-shift prep, post-shift cleanup, security screenings, required meetings, waiting time, and travel for the employer's benefit are all time worked that must be paid. If any of this time has been going uncompensated, those hours are part of your claim.

Employee Misclassification COMMON VIOLATION

Whether you are an employee or an independent contractor depends on the actual facts of your working relationship, not what a contract or a 1099 form says. The COMPS Order is explicit about this. Employers cannot reclassify you as a contractor simply by issuing a document. If the real circumstances of your work show an employment relationship, Colorado law treats you as an employee and the full range of COMPS Order protections apply.

If your employer controls when, where, and how you work, provides your equipment, limits you to working primarily for them, and the work you do is central to their business, you are likely an employee. A misclassified worker is denied overtime, paid rest breaks, paid sick leave, and other protections that employees are entitled to under Colorado law. When these violations compound over months or years, the total owed can be significant.

Facts Over Documents: The COMPS Order specifically states that whether someone is an employee or contractor depends on actual facts, not what documents say. A 1099 form or a contract labeling you a contractor does not determine your legal status.

Filing a Claim 3 YEAR RECORDS

Colorado workers can file wage and hour claims through the Division of Labor Standards and Statistics or pursue their claims in court. Both paths are available for violations of Colorado wage and hour law, including unpaid minimum wage, unpaid overtime, denied rest or meal periods, and violations of the Healthy Families and Workplaces Act. Employer records must be kept for at least three years, making that an important window for recovery.

Once you file a claim or take action to recover wages, your employer cannot legally retaliate against you. Firing, cutting hours, scheduling you for less favorable shifts, or any other negative action taken in response to a wage complaint is illegal under both the Colorado Wage Act and the COMPS Order. Retaliation is treated as a separate violation that may increase what you are owed.

Gather what you can before reaching out. Pay stubs, schedules, timesheets, text messages about hours or pay, and records of breaks that were skipped or shortened are all useful. Even partial records help build your case. An attorney can identify which violations apply, calculate the total amount owed across minimum wage, overtime, and break violations, and determine the best path to recovery.

Colorado Pursues Violators: The Division of Labor has authority to launch employer-wide direct investigations without a worker complaint. Colorado takes wage theft seriously. Reach out and let us review your situation at no cost.

Think You May Be Owed Back Wages?

Josephson Dunlap reviews wage claims for Colorado workers at no cost. There is no fee unless wages are recovered. A case manager will go through your situation and tell you where you stand.