Colorado sets some of the most detailed wage-and-hour rules in the country, and most of them live in one document: the Colorado Overtime and Minimum Pay Standards Order, better known as the COMPS Order. The Division of Labor Standards and Statistics (DLSS) inside the Colorado Department of Labor and Employment (CDLE) enforces it. The table below summarizes the 2026 rules that matter most to employers with hourly staff.
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| Topic | Rule |
|---|---|
| Minimum wage | $15.16/hour in 2026; $15.71/hour in 2027 |
| Tipped employees | $12.14/hour cash wage in 2026 (max tip credit $3.02); INFO #1 |
| Local minimums | Denver, Edgewater, City of Boulder and unincorporated Boulder County set higher rates; CDLE list |
| Overtime | 1.5x pay after 40 hours/week, 12 hours/day or 12 consecutive hours |
| Meal break | 30-minute uninterrupted, duty-free meal period for shifts over 5 hours |
| Rest break | Paid 10-minute rest period for each 4 hours worked |
| Paid sick leave | 1 hour per 30 hours worked, up to 48 hours/year; HFWA |
| Paid family leave | Up to 12 weeks through the state FAMLI program |
| Pay periods | No longer than one month or 30 days; payday within 10 days of period end |
| Final pay | Fired or laid off: immediately; quit: by the next regular payday; INFO #3A |
The statewide minimum wage is $15.16 per hour in 2026, according to CDLE's INFO #1 summary of the 2026 COMPS and Pay Calculation Orders. That floor applies to covered employees no matter how they are paid, so salaried, piece-rate and commissioned workers must still end up at or above the minimum for their hours. The rate adjusts every year for inflation. In August 2026, CDLE announced that the state minimum wage will rise to $15.71 per hour in 2027, with a tipped cash wage of $12.69.
Employers may take a tip credit of up to $3.02 per hour for workers who regularly receive tips, which puts the 2026 cash wage for tipped employees at $12.14 per hour. If an employee's direct wage plus tips does not reach the full minimum wage for a workweek, the employer has to make up the difference. Local tipped minimums may be higher than the state figure.
Colorado allows cities and counties to set their own minimum wage, and several have. CDLE's Labor Standards page lists these 2026 rates (tipped cash wage in parentheses where published):
If you have staff in more than one jurisdiction, pay each worker the rate for the place where the work is actually performed, and check each city's page before January for the new year's numbers.
Most minors who are not emancipated may be paid up to 15% below the full Colorado minimum wage, subject to the Colorado Youth Employment Standards Rules. Local ordinances can treat youth wages differently, so confirm the local rule as well.
Colorado goes further than federal law. Under the COMPS Order, non-exempt employees earn time and a half for hours beyond any of these three limits, using whichever calculation produces the larger payment:
Private employers may not substitute compensatory time off for overtime pay. Colorado also sets its own thresholds for exemptions. For 2026, an executive, administrative or professional employee must meet the duties tests and earn a salary of at least $57,784 to be exempt; highly technical computer employees must be paid at least $34.85 per hour, and the highly compensated exemption requires at least $130,014 a year plus other conditions. Because those figures differ from the federal ones, review any salaried roles against the Colorado numbers specifically. Our FLSA overtime guide explains the federal side, and the overtime calculator helps check a daily-plus-weekly week.
Colorado is one of the few states that requires both meal and rest breaks for adult employees.
For any shift over five hours, employees are entitled to an uninterrupted, duty-free meal period of at least 30 minutes. When the nature of the work makes a full release from duty impossible, the employer must provide an on-duty meal period instead, and that time counts as paid working time, as reflected in the U.S. DOL state meal-break table.
Employers must authorize and permit a paid 10-minute rest period for each four hours of work. A rest break that is not authorized and permitted is not simply a scheduling lapse: the employer owes additional pay for that time. CDLE's INFO #4 on meal and rest periods (linked from its wage and hour topic page) explains how many breaks apply to shifts of different lengths.
Colorado requires paid sick leave. Under the HFWA, employers must provide at least one hour of paid leave for every 30 hours worked, up to 48 hours per year. Employees have the right to use that leave at their normal pay and return to work without retaliation. The law also includes a second category, public health emergency leave, which CDLE notes is not currently in effect. CDLE's INFO #6 summarizes coverage, permitted uses and documentation rules.
Colorado's Paid Family and Medical Leave Insurance program (FAMLI) offers eligible workers up to 12 weeks of paid leave per year. Birthing parents with pregnancy complications may qualify for four more weeks of medical leave. Premiums, payroll reporting and the employer share are handled through the FAMLI Division, which provides a premium calculator on its site.
According to CDLE's INFO #3A on timing of wage payments, Colorado employers must set regular pay periods of no longer than one calendar month or 30 days (whichever is longer) and regular paydays no later than 10 days after each pay period closes. Employers must also post a notice of regular paydays and the time and place of payment.
Each pay period, employees must receive an itemized earnings statement showing the employer and employee names, pay period dates, total hours worked, tips and credits, regular rates, gross wages, withholdings and net pay.
The Colorado Youth Employment Opportunity Act governs workers under 18, and CDLE's INFO #22 on employment of minors combines the state and federal limits. Key points for employers:
Many hazardous occupations are off-limits to minors, and DLSS can grant exemptions to some rules. See the CDLE youth law page for the full rules.
Employers must keep the payroll information shown on earnings statements and retain it for at least three years after the wages were due, and longer if a wage claim is pending. Records must be available to the Division on request.
The CDLE posters page lists the required notices, including the current-year COMPS Order poster, the HFWA/public health rights poster and the notice of paydays. If you cannot post physically (for example, a fully remote team), give each employee a copy of the COMPS Order or poster within their first month. An employer that fails to post can lose the right to claim certain credits and exemptions, which makes the poster more than a formality.
Daily overtime and paid rest breaks make accurate time data essential in Colorado. EZTime records every punch through a GPS mobile time clock with geofencing, NFC tags, a tablet kiosk or biometric clocks, and flags shifts that cross 12 hours or skip a meal or rest break before they become wage claims. Scheduling with shift templates and swaps keeps coverage steady, built-in sick-leave balances track HFWA accruals, and payroll-ready Excel and PDF exports work with any payroll software. See the attendance clock features and pricing: plans start at $2 per employee per month with a 14-day trial.
This guide is general information, not legal advice. Laws change; check the Colorado Division of Labor Standards and Statistics or an employment attorney. Last reviewed November 2026.
The statewide minimum wage is $15.16 per hour in 2026, and tipped employees may be paid a cash wage of $12.14. CDLE has announced the state rate will rise to $15.71 per hour in 2027.
Yes. Non-exempt employees earn time and a half for hours over 40 in a workweek, over 12 in a workday, or over 12 consecutive hours, whichever gives the larger payment.
Yes. Employees get a 30-minute duty-free meal period for shifts over five hours and a paid 10-minute rest period for each four hours worked.
Under the Healthy Families and Workplaces Act, employees earn at least one hour of paid sick leave per 30 hours worked, up to 48 hours per year.
When the employer ends the job, wages are due immediately, with short extensions if the payroll office is closed or off-site. When an employee quits, wages are due by the next regular payday.