Colorado HR Consulting & Employment Law for Small Businesses
Colorado has enacted aggressive employee protections in recent years, including one of the most demanding pay transparency laws in the nation, a robust paid family leave program, and strict non-compete restrictions.
Colorado employers are subject to the Colorado Equal Pay for Equal Work Act (salary ranges required in all job postings and internal promotion notices), Colorado FAMLI (paid family and medical leave starting in 2023), and a 2022 non-compete reform law that prohibits non-competes except for high earners and requires specific handling.
Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.
Key Colorado Employment Laws
Colorado Equal Pay for Equal Work Act
Colorado employers must include a pay range (or at minimum a pay rate or range) and a general description of benefits and other compensation in all job postings, including postings for remote work that could be performed in Colorado. Employers must also notify all existing Colorado employees of promotion opportunities before or at the same time they are publicly posted.
Colorado FAMLI (Paid Family and Medical Leave)
Colorado FAMLI provides eligible employees up to 12 weeks of paid leave (16 weeks for pregnancy-related conditions) for bonding, serious illness, and qualifying military events. Both employers and employees contribute through payroll premiums. Employers with fewer than 10 employees are exempt from the employer share.
Colorado Non-Compete Law (2022 Reform)
Colorado significantly restricted non-competes effective August 2022. Non-competes are void unless the employee earns at least $123,750/year (adjusted annually). Non-solicitation agreements have a lower threshold ($74,250/year). Agreements must be disclosed before or at the time of the offer, signed separately, and meet specific duration and geographic requirements.
Colorado Healthy Families and Workplaces Act
Colorado employers must provide paid sick leave to all employees at 1 hour per 30 hours worked, up to 48 hours per year. Public health emergency leave provides additional leave. Employers may use front-loading to avoid accrual tracking. Leave may be used for medical care, family care, and public health emergencies.
Compliance Thresholds for Colorado Employers
1+ Employees: employees
- Colorado minimum wage applies (above federal, adjusted annually)
- Colorado FAMLI contributions required (employee and employer shares)
- Colorado EPEWA: salary ranges and benefits in all job postings (including remote)
15+ Employees: employees
- Colorado Anti-Discrimination Act (CADA) anti-discrimination protections
- Paid sick leave under HFWA (1 hour per 30 hours worked, up to 48 hours)
50+ Employees: employees
- Federal FMLA applies (in addition to state FAMLI)
- ACA employer mandate
Common Questions About Colorado Employment Law
Does Colorado require salary ranges in job postings?
Yes. The Colorado Equal Pay for Equal Work Act requires salary ranges and a description of benefits in all job postings, including remote positions that could be performed in Colorado. Employers must also notify all current Colorado employees of internal promotion opportunities when posting them externally.
What does Colorado FAMLI provide?
Colorado FAMLI provides up to 12 weeks of paid leave per year for qualifying events (16 weeks for pregnancy complications). Benefits replace a percentage of weekly wages up to a cap. Employer and employee contributions fund the program through payroll premiums.
Are non-competes enforceable in Colorado?
Only for employees earning at least $123,750 per year (adjusted annually for 2024 and beyond). Agreements must be disclosed at the time of the offer, signed separately, and be limited in scope and duration. Non-solicitation agreements have a lower earnings threshold of approximately $74,250/year.
Does Colorado require paid sick leave?
Yes. Under the Healthy Families and Workplaces Act, employees accrue 1 hour of paid sick leave per 30 hours worked, up to 48 hours per year. Employers may front-load the full amount. Leave can be used for personal illness, family care, and public health emergencies.
What is the Colorado minimum wage?
Colorado adjusts its minimum wage annually based on changes in the Consumer Price Index. Denver may have a higher local minimum wage. Employers should check the Colorado Department of Labor and Employment for current statewide and local rates.
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