🇺🇸 COLORADO STATE LAW – 2026 UPDATE

Colorado Remote Work Laws 2026

⚠️Informational only — not legal or tax advice.

Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Colorado

Colorado remote work laws and employment regulations guide

Table of Contents

Click any item below to jump to the relevant section

Colorado is generally considered progressive in its approach to employment regulation, particularly regarding worker protections and pay transparency. According to official state sources, Colorado has enacted comprehensive employment laws that often exceed federal minimum standards.

General Characteristics (As of 2025-2026):

  • State minimum wage (2025): $14.81/hour
  • State minimum wage (2026): Expected approximately $15.15/hour (subject to official calculation)
  • Local minimum wages: Multiple jurisdictions have higher rates (Denver, Boulder, etc.)
  • Paid sick leave: Required for employers under the Healthy Families and Workplaces Act
  • Family leave insurance: FAMLI program provides paid leave benefits through state insurance fund
  • State income tax: Flat rate (4.40% as of 2025)
  • Meal/rest breaks: Required by state law for most employees
  • Overtime rules: 1.5x pay after 40 hours/week OR 12 hours/day, whichever provides greater protection
  • Workers’ compensation: Generally required for employers meeting coverage criteria
  • Pay transparency: Extensive requirements under Equal Pay for Equal Work Act

Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, employee classification, work location, and individual circumstances. Laws change frequently and local ordinances may impose additional requirements. Consult official sources and legal counsel for guidance on specific situations.

Sources:

Official State Agency Information

The Colorado Department of Labor and Employment (CDLE) is the primary state agency administering employment laws in Colorado. Within CDLE, several divisions handle specific areas:

Division of Labor Standards and Statistics (DLSS)

Division of Workers’ Compensation

Division of Family and Medical Leave Insurance (FAMLI)

Division of Unemployment Insurance

Note: These agencies can provide official interpretations of state law and guidance on compliance obligations. However, for legal advice on how laws apply to your specific situation, consult a licensed attorney. Agency contact information was current as of December 2025 but may change.

Source: Colorado Department of Labor and Employment – https://cdle.colorado.gov/

Colorado’s Employment Law Structure

Colorado employment law derives from multiple sources:

1. State Constitution

2. Colorado Revised Statutes (C.R.S.)

3. Administrative Rules

  • Colorado Code of Regulations contains detailed rules implementing statutes
  • Division of Labor Standards and Statistics promulgates key employment rules
  • Available at: https://www.sos.state.co.us/CCR/

4. Local Ordinances

  • Several Colorado municipalities have enacted local employment laws
  • May include local minimum wages, paid sick leave, or other requirements
  • Employers must comply with the law providing the highest standard

5. Federal Law

  • Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), and other federal laws also apply
  • When federal and state laws conflict, the law providing greater worker protection generally applies

Major State Employment Statutes

1. Colorado Wage Act

Statutory Citation: C.R.S. § 8-4-101 et seq.
Official Source: https://cdle.colorado.gov/sites/cdle/files/colorado_wage_act_revised_august_6_2025.pdf
Revised: August 6, 2025

General Provisions (as stated in the statute):

According to the Colorado Wage Act, the statute generally addresses:

  • Wage payment timing: Employers are generally described as being required to pay wages within specified timeframes
  • Final pay requirements: Provisions regarding timing of final wage payment upon separation
  • Deductions from wages: Limitations on when employers may make deductions
  • Wage complaints: Process for filing complaints for unpaid wages with DLSS
  • Penalties: Potential consequences described in statute for violations

Key Definitions (from statute):

The statute defines “employee” to mean “any person, including a migratory laborer, performing labor or services for the benefit of an employer.” According to C.R.S. § 8-4-101(5), relevant factors in determining whether a person is an employee include “the degree of control the employer may or does exercise over the person and the degree to which the person performs work that is the primary work of the employer.”

Application to Remote Work: The Wage Act’s provisions generally apply based on where work is performed. Workers performing services from a location in Colorado would typically be subject to Colorado wage law protections. However, specific applicability can depend on multiple factors. Consult Colorado DLSS or legal counsel for guidance on particular circumstances.

Recent Amendment (HB 25-1001): Effective August 6, 2025, House Bill 25-1001 amended the Colorado Wage Act to expand certain provisions. According to available legislative summaries, changes include expanded definitions of “employer,” modifications to penalty waivers, and increased claim limits. Employers should review official guidance from DLSS regarding these changes.

Source: Colorado Wage Act, C.R.S. § 8-4-101 et seq., as revised August 6, 2025

2. Colorado Overtime and Minimum Pay Standards Order (COMPS Order)

Regulatory Citation: 7 CCR 1103-1 (COMPS Order #39 for 2024, updated annually)
Current Version for 2025: Published December 2024
Official Source: https://cdle.colorado.gov/dlss/labor-laws-rules-resources/labor-rules-proposed-and-adopted

General Framework:

According to the COMPS Order published by the Division of Labor Standards and Statistics:

  • Minimum wage: Sets annual minimum wage rates (adjusted yearly based on CPI)
  • Overtime: Establishes overtime pay requirements at 1.5x regular rate
  • Meal and rest breaks: Specifies break requirements for most employees
  • Exemptions: Describes categories of employees who may be exempt from certain provisions
  • Time worked: Defines what constitutes compensable working time

Coverage: The COMPS Order generally applies to most Colorado employers and employees, with specific exemptions detailed in Rule 2. According to the Order, when multiple laws apply, the law providing the highest standard or greater protection generally controls.

Annual Updates: The Division publishes an updated COMPS Order each year, typically in late fall, with an effective date of January 1. The companion Publication and Yearly Calculation of Adjusted Labor Compensation (PAY CALC) Order publishes specific dollar amounts for salary thresholds and other annually-adjusted values.

PAY CALC Order 2025: 7 CCR 1103-14, effective January 1, 2025
Source: https://cdle.colorado.gov/sites/cdle/files/adopted_2025_pay_calc_order_7_ccr_1103-14_11.7.24_accessible.pdf

Key 2025 Values (from PAY CALC Order):

  • Executive/Administrative/Professional (EAP) salary threshold: $56,485 annually ($1,086.25/week)
  • Highly Compensated Employee exemption: $127,091 annually
  • Range worker minimum salary: $606.56/week (for livestock range workers)

Note: These values are adjusted annually. Verify current amounts with DLSS before making classification decisions.

Application to Remote Work: The COMPS Order provisions generally apply to work performed in Colorado, regardless of employer location. Remote workers performing services from locations in Colorado would typically be subject to COMPS Order requirements. Specific situations may require consultation with DLSS or legal counsel.

Source: Colorado Overtime and Minimum Pay Standards Order, 7 CCR 1103-1; 2025 PAY CALC Order, 7 CCR 1103-14

3. Colorado Healthy Families and Workplaces Act (HFWA)

Statutory Citation: C.R.S. § 8-13.3-401 et seq.
Effective Date: July 14, 2020 (phased implementation, fully effective January 1, 2022)
Expansion Effective: August 7, 2023
Official Source: https://cdle.colorado.gov/dlss-home-page/paid-sick-leave-under-the-colorado-healthy-families-and-workplaces-act-hfwa

General Overview:

According to the Colorado Department of Labor and Employment, HFWA generally requires Colorado employers to provide two types of paid sick leave:

  1. Accrued Paid Sick Leave: Minimum of 1 hour per 30 hours worked, up to 48 hours per year
  2. Public Health Emergency (PHE) Leave: Additional leave during declared public health emergencies (not currently in effect as of December 2025)

Coverage: The statute generally applies to all Colorado employers, regardless of size, with limited exceptions for federal employees and certain railroad workers. Both full-time and part-time employees generally accrue paid sick leave under the Act.

Permitted Uses (from statute): According to C.R.S. § 8-13.3-405, paid sick leave may generally be used for:

  • Mental or physical illness, injury, or health condition
  • Preventive medical care or diagnosis, care, or treatment
  • Domestic abuse, sexual assault, or harassment-related needs
  • Public health emergency-related closures
  • Expanded uses (effective August 7, 2023):
    • Bereavement or financial/legal needs after death of family member
    • Evacuation or care for family member due to inclement weather, power/heat/water loss

“Family Member” Definition: The statute defines family member broadly. According to the Act, it may include anyone for whom “the employee is responsible for providing or arranging health- or safety-related care.”

Documentation: Employers may request documentation for absences of four or more consecutive days, but employees are not required to provide documentation before leave ends.

Note: HFWA is a complex statute with numerous specific requirements. This overview provides general background only. The complete statute and official guidance from DLSS should be consulted for compliance purposes. (Detailed coverage in Part 3.)

Source: Colorado Healthy Families and Workplaces Act, C.R.S. § 8-13.3-401 et seq.; INFO #6 series from DLSS

4. Family and Medical Leave Insurance Act (FAMLI)

Statutory Citation: C.R.S. § 8-13.3-501 et seq.
Effective Date: January 1, 2023 (premium collection); January 1, 2024 (benefits available)
Official Source: https://famli.colorado.gov/

General Framework:

According to the Division of Family and Medical Leave Insurance, Colorado’s FAMLI program is generally described as a state-run insurance program providing wage replacement benefits for qualifying leave. The program is funded by payroll premiums paid by employers and employees.

Coverage: The statute generally covers virtually all Colorado employers with one or more employees, with limited exceptions. Most employees working in Colorado are eligible for benefits, subject to minimum earnings requirements.

Types of Leave (from statute): Benefits may be available for:

  • Own serious health condition
  • Bonding with new child
  • Care for family member with serious health condition
  • Safe leave related to domestic violence, sexual assault, or stalking

Benefit Amount: According to FAMLI program materials, benefits provide partial wage replacement on a sliding scale, up to a maximum weekly amount (adjusted annually). For 2025, the maximum weekly benefit is $1,324.21 for new claims filed after January 1, 2025.

Duration: Up to 12 weeks of leave per benefit year (16 weeks in certain circumstances)

Premium Rates: Rates are set annually. For 2025, the total premium rate is 1.09% of wages (split between employer and employee per statute provisions, with some exceptions for small employers).

Relationship to HFWA: FAMLI and HFWA are separate programs. Employees generally cannot receive both FAMLI benefits and HFWA paid sick leave for the same hours, though they may mutually agree to supplement FAMLI with accrued paid time off.

Note: FAMLI program details are complex and subject to annual adjustments. (Detailed coverage in Part 3.) This overview is for general background only.

Source: Colorado Family and Medical Leave Insurance Act, C.R.S. § 8-13.3-501 et seq.; FAMLI Division publications

5. Equal Pay for Equal Work Act

Statutory Citation: C.R.S. § 8-5-101 et seq. (Part 2 added effective January 1, 2021; amended 2024)
Official Source: https://cdle.colorado.gov/dlss/labor-laws-by-topic/equal-pay-act

General Framework:

The Equal Pay for Equal Work Act has two parts:

Part 1: Prohibits wage discrimination between employees performing substantially similar work based on sex or sex plus another protected status.

Part 2: Establishes pay transparency requirements, including:

  • Disclosure of compensation range and benefits in job postings
  • Notification to current employees of job opportunities
  • Post-selection notices
  • Career progression information for positions with defined advancement paths

Applicability: According to DLSS guidance, the Act generally applies to employers with at least one employee in Colorado. Certain exemptions apply for employers with no physical presence in Colorado and fewer than 15 remote Colorado employees (partial exemption until July 1, 2029).

“Colorado Job” Definition: The statute defines positions that could be performed in Colorado, creating disclosure obligations even for positions theoretically performable remotely.

Application to Remote Work: The pay transparency provisions create compliance obligations for remote work positions. Employers hiring remote workers who could perform work from Colorado generally must comply with posting requirements.

Enforcement: The Division may investigate complaints. According to the statute, potential consequences for violations may include back pay, fines, and other remedies.

Note: This Act has extensive requirements affecting hiring, promotion, and pay practices. (Additional coverage in Part 4.) Employers should consult DLSS guidance and legal counsel for compliance assistance.

Source: Equal Pay for Equal Work Act, C.R.S. § 8-5-101 et seq.; DLSS published guidance

6. Colorado Employment Security Act (Unemployment Insurance)

Statutory Citation: C.R.S. § 8-70-101 et seq.
Administering Agency: Division of Unemployment Insurance
Official Source: https://cdle.colorado.gov/unemployment

General Framework:

According to the statute, the Employment Security Act generally:

  • Requires most employers to pay unemployment insurance taxes
  • Provides benefits to eligible workers who lose employment through no fault of their own
  • Establishes worker classification standards for unemployment insurance purposes

Classification Test: C.R.S. § 8-70-115 provides factors for determining employee versus independent contractor status for unemployment insurance purposes. These factors include degree of control and whether the worker is engaged in an independently established business.

Coverage: The statute generally requires unemployment insurance coverage for employers paying wages of $1,500 or more in any calendar quarter or employing at least one worker for 20 weeks or more in a calendar year.

Application to Remote Work: Workers performing services from Colorado locations may be covered under Colorado unemployment insurance law. Multi-state employment situations can raise complex questions regarding which state’s unemployment insurance system applies. Employers should consult the Division of Unemployment Insurance for guidance.

Source: Colorado Employment Security Act, C.R.S. § 8-70-101 et seq.

7. Colorado Workers’ Compensation Act

Statutory Citation: C.R.S. § 8-40-101 et seq. through § 8-47-101 et seq.
Administering Agency: Division of Workers’ Compensation
Official Source: https://cdle.colorado.gov/dwc

General Framework:

According to the Colorado Workers’ Compensation Act, the statute generally establishes a system providing benefits to employees injured in the course and scope of employment. The system is described as:

  • Mandatory coverage: Most employers are described as being required to maintain workers’ compensation insurance
  • Exclusive remedy: Generally provides the sole remedy for workplace injuries (with exceptions)
  • No-fault system: Benefits generally provided regardless of fault
  • Medical and wage benefits: Covers medical treatment and wage replacement

Coverage Requirements: According to C.R.S. § 8-40-202, employers are generally described as needing workers’ compensation coverage, subject to certain exemptions and thresholds detailed in the statute.

Application to Remote Work: Whether remote work injuries are covered by workers’ compensation is highly fact-specific and depends on whether the injury “arose out of and in the course of employment.” The statute does not specifically address remote work, and determinations are made based on the facts of each case. (Detailed coverage in Part 4.)

Source: Colorado Workers’ Compensation Act, C.R.S. § 8-40-101 et seq. and related titles

Employee Classification Standards in Colorado

Why Classification Matters

Worker classification affects numerous legal obligations and protections:

For Workers:

  • Minimum wage and overtime protections
  • Paid sick leave eligibility
  • FAMLI eligibility
  • Unemployment insurance coverage
  • Workers’ compensation coverage
  • Employment discrimination protections
  • Tax withholding and benefits

For Businesses:

  • Unemployment insurance tax obligations
  • Workers’ compensation insurance requirements
  • Wage and hour compliance obligations
  • FAMLI premium obligations
  • Employment tax withholding
  • Benefit provision requirements
  • Compliance with employment laws

Important Note: Classification can differ depending on the purpose. A worker might be classified one way for unemployment insurance purposes and differently for federal tax purposes. Each relevant statute and agency may apply its own test.

Colorado’s General Approach

Colorado has enacted several statutes addressing worker classification, and the applicable test may vary depending on the context:

For Unemployment Insurance: C.R.S. § 8-70-115
For Workers’ Compensation: C.R.S. § 8-40-202 and case law
For Wage and Hour (COMPS Order): Generally follows employment definition in Colorado Wage Act
For Federal Tax Purposes: IRS Common Law test

According to the Colorado Department of Labor and Employment, Colorado law generally presumes a worker is an employee unless the employer can demonstrate otherwise under the applicable statutory test.

Source: CDLE – https://cdle.colorado.gov/employers/audits/ensure-proper-worker-classification

Unemployment Insurance Classification Test

Statutory Authority: C.R.S. § 8-70-115
Agency: Division of Unemployment Insurance
Official Guidance: https://cdle.colorado.gov/employers/audits/ensure-proper-worker-classification

General Framework:

According to C.R.S. § 8-70-115, in determining whether a worker should be classified as an employee or independent contractor for unemployment insurance purposes, the Division considers several factors. The statute states that relevant factors include:

Primary Factors (as stated in statute):

  1. Degree of Control: “The degree of control the employer may or does exercise over the person”
  2. Primary Work: “The degree to which the person performs work that is the primary work of the employer”

The statute further provides that a worker is generally presumed to be an independent contractor only if the individual is:

  • “Primarily free from control and direction in the performance of the service, both under his or her contract for the performance of service and in fact”
  • “Customarily engaged in an independent trade, occupation, profession, or business related to the service performed”

Case Law: Colorado courts have provided additional guidance on these factors. According to Industrial Claim Appeals Office v. Softrock Geological Services, Inc., 325 P.3d 560 (Colo. 2014), and Western Logistics, Inc. v. Industrial Claim Appeals Office, 325 P.3d 550 (Colo. 2014), the analysis is fact-specific and considers the totality of circumstances.

Control Factor – General Considerations

What “Control” May Include (examples from case law and agency guidance):

The following types of control have been identified in various contexts as potentially relevant:

Behavioral Control:

  • Who determines when work is performed
  • Who determines where work is performed
  • Who determines how tasks are completed
  • Whether detailed instructions or procedures are provided
  • Whether training is required or provided by the hiring entity
  • Whether performance is evaluated by the hiring entity

Financial Control:

  • Who provides tools, equipment, or materials
  • Whether worker makes significant investment in business
  • Whether worker has unreimbursed expenses
  • How payment is structured (hourly vs. project-based)
  • Whether worker can realize profit or loss
  • Whether worker can work for others simultaneously

Relationship Factors:

  • Whether there is a written contract describing the relationship
  • Whether benefits are provided (insurance, paid leave, etc.)
  • Permanency of the relationship
  • Whether work is integral to the business’s regular operations

⚠️ Important: No single factor is determinative. Courts and agencies examine the totality of circumstances. These are examples of factors that may be considered—this is not an exhaustive list, and specific weight given to each factor depends on the complete factual context.

Illustrative Scenarios (For General Understanding Only)

The following scenarios are provided purely for general educational purposes. They do not constitute classification determinations, legal advice, or predictions of how particular situations would be classified. Every situation is unique and requires professional analysis.

Scenario 1: Software Developer with Autonomy

Situation: A software developer contracts with multiple companies. She maintains her own home office, uses her own computer equipment, sets her own work hours, determines her own methods for completing coding projects, invoices clients upon project completion, carries liability insurance, advertises services to potential clients, and simultaneously works for multiple clients on different projects.

General Observations: This scenario may share some characteristics commonly associated with independent contractor relationships based on factors such as:

  • Multiple simultaneous clients
  • Own investment in equipment
  • Project-based payment structure
  • Freedom to determine work methods and schedule
  • Marketing of services to potential clients

However, actual classification would depend on many additional factors including:

  • Whether any client exercises control over how work is performed
  • Whether work is central to any client’s primary business
  • Complete financial relationship details
  • Nature and permanency of each client relationship
  • Other specific circumstances

⚠️ This is not a classification determination. Classification depends on applying the full statutory test to all facts and circumstances. Consult employment counsel and appropriate agencies for actual classification decisions.

Scenario 2: Administrative Assistant with Employer-Provided Resources

Situation: An individual works exclusively for one company from a home office, uses company-provided computer equipment and software, follows company-established procedures and schedule (Monday-Friday, 9 AM-5 PM with one-hour lunch), reports to a supervisor who assigns and reviews work daily, receives hourly payment through company payroll, does not work for any other companies, and does not advertise services or have business insurance.

General Observations: This scenario may share some characteristics commonly associated with traditional employment relationships based on factors such as:

  • Single client relationship
  • Company provides equipment
  • Set schedule and procedures
  • Regular supervision and work direction
  • Integration into company operations
  • No independent business operation

However, actual classification would require analysis of:

  • Complete details of control exercised
  • Contractual relationship terms
  • Industry context
  • Other relevant factors

⚠️ This is not a classification determination. Proper classification requires professional evaluation of all relevant factors under applicable law.

Scenario 3: Mixed Factors – Consultant Role

Situation: A marketing consultant works primarily with one client (providing approximately 80% of consultant’s income), sets own work hours and methods, works from own office using own equipment, has a written independent contractor agreement, invoices monthly, carries liability insurance, but performs work that is central to the client’s core business operations, has worked with the client continuously for 2 years, and receives detailed strategic direction (though not daily supervision) from the client.

General Observations: This scenario contains characteristics that could support either classification:

Factors possibly suggesting independent contractor status:

  • Own equipment and workspace
  • Control over schedule and methods
  • Written contractor agreement
  • Business insurance
  • Invoice-based payment

Factors possibly suggesting employee status:

  • Single primary client (economic dependence)
  • Work central to client’s business
  • Ongoing permanent relationship
  • Direction regarding strategic outcomes

⚠️ This is not a classification determination. This type of mixed-factor scenario particularly requires professional analysis. Courts and agencies would examine the totality of circumstances, and reasonable people might disagree on the proper classification. Professional guidance is essential.

Remote Work Classification Considerations

For remote workers, the classification analysis does not change, but certain factors may present additional complexity:

Considerations That May Be Relevant:

  • Whether remote work location is employer-designated or worker-chosen
  • How work is monitored and supervised in remote setting
  • Who provides equipment, software, and technology for remote work
  • Whether worker has physical office space separate from work-from-home arrangement
  • Whether worker simultaneously serves multiple clients remotely
  • Nature and frequency of virtual meetings and communications
  • Degree of flexibility in work schedule and methods

⚠️ Important: These are general considerations only. Remote work does not change the fundamental legal tests for classification. The same statutory standards apply regardless of work location.

Potential Consequences of Misclassification

According to various Colorado statutes and agency guidance, misclassification may result in consequences for both businesses and workers.

For Businesses (potential consequences described in statute and agency materials, non-exhaustive):

According to official sources, potential consequences may include:

  • Back payment of unemployment insurance taxes and penalties (C.R.S. § 8-70-115)
  • Workers’ compensation premium adjustments and penalties (C.R.S. § 8-43-301 et seq.)
  • Wage and hour violations for unpaid minimum wage, overtime, and/or breaks (C.R.S. § 8-4-101 et seq., COMPS Order)
  • Penalties for wage law violations, potentially including per-day penalties
  • Back payment of FAMLI premiums
  • Federal tax consequences (IRS penalties for unpaid employment taxes)
  • Denial of certain tax deductions
  • Legal fees and costs if disputes arise

Specific consequences depend on:

  • Which statute was violated
  • Severity and duration of misclassification
  • Number of affected workers
  • Whether misclassification was intentional or inadvertent
  • Agency enforcement priorities
  • Settlement negotiations
  • Other factors

C.R.S. § 8-72-115 addresses knowing misclassification and describes potential criminal penalties in extreme cases.

For Workers (potential impacts described in statute and guidance, non-exhaustive):

According to official sources, misclassified workers may experience:

  • Lack of minimum wage and overtime protections
  • No paid sick leave under HFWA
  • Potential ineligibility for FAMLI benefits
  • Lack of unemployment insurance if job lost
  • Potential gaps in workers’ compensation coverage
  • Responsibility for self-employment taxes
  • No employment discrimination protections
  • Loss of other employee benefits and protections

⚠️ Important: These are general descriptions based on statutory provisions. Actual consequences in any situation depend on specific facts, applicable law, and official determinations. This information does not constitute legal advice about potential exposure.

Consult legal counsel to understand potential consequences in your specific situation.

How to Seek Official Guidance

Advisory Opinions: According to CDLE, employers may request an advisory opinion regarding proper worker classification for unemployment insurance purposes. The process involves:

  • Submitting request form to Division of Unemployment Insurance
  • Paying $100 nonrefundable fee
  • Providing detailed information about working relationship

Contact: Colorado Department of Labor and Employment
Division of Unemployment Insurance, Employer Services, Audits
P.O. Box 8789, Denver, CO 80201-8789
Website: https://cdle.colorado.gov/employers/audits/ensure-proper-worker-classification

⚠️ Important: Advisory opinions from the Division of Unemployment Insurance address unemployment insurance classification only. Classification for other purposes (workers’ compensation, wage-hour law, federal taxes) requires separate analysis and potentially different determinations.

For Other Classification Questions:

Best Practices for Classification Decisions

The following are general recommendations from various sources. They do not constitute legal requirements, and suitability depends on specific circumstances. Consult legal counsel before implementing.

For Businesses:

Documentation:

  • Maintain written agreements clearly describing the relationship
  • Document the degree of control (or lack thereof)
  • Keep records of how work is performed and supervised
  • Preserve communications regarding work arrangements

Analysis:

  • Apply appropriate legal tests before classifying workers
  • Consider all relevant factors, not just convenient ones
  • Document the reasoning for classification decisions
  • Review classifications periodically, especially if relationships change

Professional Consultation:

  • Consult employment counsel before making close classification calls
  • Consider requesting advisory opinions for uncertain situations
  • Review classifications when laws change
  • Audit existing classifications periodically

Caution Regarding:

  • Relying solely on written contract language
  • Assuming all project-based workers are contractors
  • Misclassifying to avoid benefit costs
  • Accepting worker’s preference as determinative

For Workers:

Understanding Status:

  • Ask how employer classified you and why
  • Understand the implications of classification
  • Review actual working conditions vs. contractual terms
  • Consult resources if classification seems questionable

If Classification Seems Incorrect:

  • Document actual working conditions
  • Review applicable legal tests
  • Consult employment attorney or relevant agency
  • Consider filing complaint if appropriate

Additional Resources

Colorado Department of Labor and Employment – Classification Resources:

Federal Resources:

Professional Assistance:

⚠️ FINAL CRITICAL REMINDER: Worker classification is a legal determination with significant consequences that should be made only with professional guidance. The information above is for general educational purposes and does not constitute:

  • Legal advice or tax advice
  • A classification analysis or determination
  • A recommendation for classifying any particular worker
  • A substitute for consultation with licensed professionals

Classification determinations should be made by:

  1. Employment attorney licensed in Colorado for legal analysis
  2. Tax professional for federal and state tax implications
  3. Appropriate Colorado agencies for official determinations under specific statutes
  4. Other relevant professionals as needed

 

Colorado Healthy Families and Workplaces Act (HFWA)

Legal Framework

Statutory Authority: Colorado Healthy Families and Workplaces Act, C.R.S. § 8-13.3-401 et seq.
Original Enactment: July 14, 2020 (Senate Bill 20-205)
Expansion Effective: August 7, 2023
Administering Agency: Division of Labor Standards and Statistics
Official Source: https://cdle.colorado.gov/dlss-home-page/paid-sick-leave-under-the-colorado-healthy-families-and-workplaces-act-hfwa

General Program Description

According to the Colorado Department of Labor and Employment, the HFWA generally requires Colorado employers to provide two types of paid sick leave to employees:

1. Accrued Paid Sick Leave

  • Minimum of 1 hour accrued per 30 hours worked
  • Up to 48 hours per year may be used
  • Available for various health and safety needs

2. Public Health Emergency (PHE) Leave

  • Additional leave during declared public health emergencies
  • Separate from accrued leave
  • Status: Not currently in effect as of December 2025 (COVID-19 PHE ended)

Employer and Employee Coverage

Employer Coverage (from statute):

According to C.R.S. § 8-13.3-403, the Act generally applies to all Colorado employers, regardless of size. The statute was implemented in phases:

  • January 1, 2021: Employers with 16 or more employees
  • January 1, 2022: All employers (including those with fewer than 16 employees)

Employee Coverage (from statute):

According to the HFWA, covered employees generally include:

  • Full-time employees
  • Part-time employees
  • Temporary employees
  • Seasonal employees

Exemptions (from statute):

The Act generally does not cover:

  • Federal government employees
  • Certain railroad workers subject to federal Railway Labor Act

⚠️ Important: The HFWA has very broad coverage. Most Colorado employees working for private employers are covered. Employers uncertain about coverage should consult DLSS.

Source: C.R.S. § 8-13.3-403; DLSS INFO #6 series

Accrual Provisions

Accrual Rate (from statute):

According to C.R.S. § 8-13.3-403, employees generally accrue paid sick leave at a rate of:

  • 1 hour of paid sick leave for every 30 hours worked
  • Accrual begins on the first day of employment or January 1, 2021 (whichever is later)

Annual Cap (from statute):

According to the statute:

  • Employers are generally not required to allow employees to use more than 48 hours of paid sick leave per year
  • Employers may voluntarily provide higher limits

Example Accrual Calculation (Illustrative Only):

Scenario: Employee works 40 hours per week, 52 weeks = 2,080 hours annually

Calculation: 2,080 hours ÷ 30 = 69.3 hours accrued

Usage Cap: Employee may use up to 48 hours per year (even though 69.3 hours accrued)

⚠️ Note: This is a simplified example for general understanding. Actual accrual depends on hours actually worked, timing of employment, and other factors.

Carryover (from statute):

According to C.R.S. § 8-13.3-403(3):

  • Up to 48 hours of unused paid sick leave generally carries forward to subsequent year
  • Employer may cap total accrual at 48 hours
  • Employer is not required to allow use of more than 48 hours per year

Front-Loading Option:

According to DLSS guidance, employers may choose to front-load the full 48 hours at the beginning of each year instead of using accrual method. If front-loading, carryover rules may differ. Consult DLSS INFO #6 for front-loading details.

Source: C.R.S. § 8-13.3-403; DLSS INFO #6A

Permitted Uses of Paid Sick Leave

According to C.R.S. § 8-13.3-405, paid sick leave may generally be used for the following purposes:

Original Uses (Effective January 1, 2021):

  1. Employee’s Own Health:
    • Mental or physical illness, injury, or health condition
    • Obtaining preventive medical care
    • Medical diagnosis, care, or treatment
  2. Family Member Care:
    • Caring for family member with illness, injury, or health condition
    • Accompanying family member to medical appointments
  3. Public Health Emergency:
    • When public official orders closure of employee’s workplace
    • When public official orders closure of child’s school or place of care
  4. Domestic Violence, Sexual Assault, or Harassment:
    • Seeking medical attention or mental health counseling
    • Seeking victim services
    • Seeking legal services or participating in legal proceedings
    • Relocating

Expanded Uses (Effective August 7, 2023):

  1. Bereavement and Related Needs:
    • Attending funeral or memorial service after death of family member
    • Grieving death of family member
    • Attending to financial or legal matters after death of family member
  2. Inclement Weather and Emergencies:
    • Evacuating residence due to inclement weather
    • Evacuating residence due to loss of power, heat, or water
    • Evacuating residence due to other unexpected event
    • Caring for family member whose school or place of care closed due to inclement weather

“Family Member” Definition (from statute):

According to C.R.S. § 8-13.3-401(6), “family member” is defined broadly to include:

  • Child (biological, adopted, foster, stepchild, or legal ward)
  • Parent
  • Spouse or domestic partner
  • Grandparent
  • Grandchild
  • Sibling
  • Anyone for whom the employee is responsible for providing or arranging health- or safety-related care

⚠️ Note: The last category significantly broadens the definition beyond traditional family relationships.

Source: C.R.S. § 8-13.3-405; C.R.S. § 8-13.3-401(6)

Notice and Documentation

Employee Notice Requirements (from statute and regulations):

According to DLSS guidance, when practicable, employees should:

  • Provide advance notice of need to use paid sick leave
  • If not practicable, provide notice as soon as possible

Employer Documentation Requests (from statute):

According to C.R.S. § 8-13.3-407:

  • Employers may request documentation for absences of four or more consecutive work shifts
  • Documentation request must be reasonable
  • Employee is not required to provide documentation before leave ends
  • Employee may provide documentation after returning to work

Types of Acceptable Documentation (from DLSS guidance):

Documentation may include:

  • Note from healthcare provider
  • Police report (for domestic violence situations)
  • Court documents
  • Other reasonable verification

⚠️ Important: Employers may not request documentation for absences shorter than four consecutive shifts. Even for longer absences, documentation requests must be reasonable and not overly burdensome.

Source: C.R.S. § 8-13.3-407; DLSS INFO #6B

Rate of Pay for Paid Sick Leave

According to C.R.S. § 8-13.3-406, paid sick leave must generally be paid at:

  • The same rate the employee earns during time worked
  • For employees with variable rates, the average of amounts earned over the previous pay period

For Tipped Employees:

According to DLSS guidance, paid sick leave for tipped employees must be paid at full minimum wage (not the lower tipped minimum wage) since tips are not earned during sick leave.

Source: C.R.S. § 8-13.3-406; DLSS guidance

Employer Obligations

Notice Requirements (from statute):

According to C.R.S. § 8-13.3-410, employers generally must:

  • Post notice of paid sick leave rights in a conspicuous location
  • Provide individual notice to each employee of their rights
  • Post and provide notice in English and Spanish (and other languages as available)

Available Notices: DLSS provides model notices at: https://cdle.colorado.gov/dlss

Recordkeeping:

According to DLSS guidance, employers should maintain records of:

  • Hours worked by employees
  • Paid sick leave accrued
  • Paid sick leave used
  • Paid sick leave balances

Statements to Employees:

Employers must generally provide information about paid sick leave accrual and available balance in regular wage statements or separately.

Source: C.R.S. § 8-13.3-410; DLSS guidance

Interaction with Other Leave Policies

Employers with Existing Paid Leave Policies:

According to C.R.S. § 8-13.3-403(4), employers with paid leave policies (such as PTO banks) may satisfy HFWA requirements if their policy:

  • Provides at least the amount of leave required by HFWA
  • Allows use for the same purposes as HFWA
  • Meets all other HFWA requirements

⚠️ Important: Simply having a PTO policy is not automatically compliant. The policy must meet all HFWA criteria.

Vacation vs. Sick Leave:

Employers may have separate vacation and sick leave policies. However:

  • Accrued, unused vacation must be paid out at termination (under Colorado wage law)
  • Paid sick leave under HFWA does NOT need to be paid out at termination

Source: C.R.S. § 8-13.3-403(4), (5); Colorado wage law provisions

Application to Remote Workers

According to general principles and DLSS guidance:

  • HFWA protections generally apply to employees working in Colorado
  • Remote workers performing work from Colorado locations would typically be covered
  • Employer location is generally not the determining factor

For Multi-State Remote Workers:

If an employee works remotely from multiple states, determining which state’s sick leave law applies can be complex. Employers should consult legal counsel and relevant state agencies.

Enforcement and Remedies

Filing Complaints:

Employees who believe their HFWA rights have been violated may:

Potential Remedies (from statute):

According to the HFWA, potential remedies for violations may include:

  • Back payment of unpaid sick leave
  • Reinstatement if terminated
  • Penalties
  • Attorney’s fees and costs

Anti-Retaliation Protection:

According to C.R.S. § 8-13.3-408, employers are generally prohibited from:

  • Retaliating against employees for using or attempting to use paid sick leave
  • Counting use of HFWA leave as absence that may lead to discipline or termination
  • Interfering with employee rights under HFWA

Source: C.R.S. § 8-13.3-408, § 8-13.3-409

Family and Medical Leave Insurance (FAMLI) Program

Legal Framework

Statutory Authority: Colorado Family and Medical Leave Insurance Act, C.R.S. § 8-13.3-501 et seq.
Voter Approval: Proposition 118 (November 2020)
Premium Collection Began: January 1, 2023
Benefits Available: January 1, 2024
Administering Agency: Division of Family and Medical Leave Insurance
Official Source: https://famli.colorado.gov/

General Program Structure

According to the FAMLI Division, Colorado’s FAMLI program is generally described as:

  • A state-run insurance program providing wage replacement benefits
  • Funded by payroll premiums paid by employers and employees
  • Available to most Colorado employees who meet eligibility requirements
  • Providing partial wage replacement (not full salary)

Key Distinction from HFWA:

  • HFWA: Employer pays full wages directly to employee
  • FAMLI: State insurance fund pays partial wage replacement to employee

Premium Rates and Obligations

2025 Premium Rate:

According to Proposition 118 and FAMLI Division announcements:

  • Total Premium: 0.9% of wages
  • Split (for most employers): 0.45% employer + 0.45% employee

2026 Premium Rate (Effective January 1, 2026):

According to Senate Bill 25-144:

  • Total Premium: 0.88% of wages (reduced from 0.9%)
  • Split: 0.44% employer + 0.44% employee

Future Rates:

According to statute, the Division Director will set rates annually starting after 2026, with rates capped at 1.2% of wages total.

Wage Base:

Premiums are paid on wages up to the Social Security Wage Base:

  • 2025: $176,100
  • 2026: Will be announced by Social Security Administration

Employer Size Categories:

Employers with 10 or More Employees (nationwide):

  • Must pay employer portion (0.45% in 2025; 0.44% in 2026)
  • Must collect and remit employee portion

Employers with Fewer Than 10 Employees:

  • NOT required to pay employer portion
  • Still must collect and remit employee portion from employees

Counting Employees: According to FAMLI regulations, the count is based on total employees nationwide who worked 20 or more calendar weeks in the prior year.

Annual Reporting: Employers must report total employee headcount by February 28 each year.

Source: C.R.S. § 8-13.3-510; FAMLI Division guidance; Senate Bill 25-144

Employer Coverage and Obligations

Covered Employers (from statute):

According to the FAMLI Act, covered employers generally include:

  • Virtually all private employers with at least one employee in Colorado
  • Self-employed individuals may opt in

Local Government Exception:

Local government employers may opt out if they hold a vote among employees. Employees of opted-out local governments are not covered by FAMLI.

Employer Registration and Reporting:

According to FAMLI Division requirements, employers must:

  • Register with FAMLI Division
  • Report wages quarterly
  • Remit premiums quarterly
  • Update employee headcount annually by February 28

Quarterly Filing Deadlines:

  • Q1 (Jan-Mar): Due April 30
  • Q2 (Apr-Jun): Due July 31
  • Q3 (Jul-Sep): Due October 31
  • Q4 (Oct-Dec): Due January 31

Source: FAMLI Division employer guidance – https://famli.colorado.gov/employers

Employee Eligibility for Benefits

Basic Eligibility (from statute and regulations):

To be eligible for FAMLI benefits, an employee generally must:

  • Have earned at least $2,500 in Colorado wages subject to FAMLI premiums
  • Over the previous four completed calendar quarters
  • OR five completed calendar quarters (depending on when claim is filed)

⚠️ Important: There is NO minimum tenure requirement with a specific employer. Eligibility is based on wages earned from all Colorado employment, not from one employer.

Self-Employed Coverage:

Self-employed individuals and independent contractors may elect coverage by:

  • Opting in through FAMLI Division
  • Paying premiums on their earnings
  • Maintaining coverage for at least three years

Source: C.R.S. § 8-13.3-503; FAMLI regulations

Types of Leave Covered

According to C.R.S. § 8-13.3-502, FAMLI benefits may be available for:

1. Own Serious Health Condition

  • Employee’s own serious health condition preventing work

2. Bonding with New Child

  • Birth of child
  • Adoption of child
  • Placement of child for foster care

3. Care for Family Member

  • Family member’s serious health condition

4. Safe Leave

  • Needs related to domestic violence, sexual assault, or stalking affecting employee or family member

5. NICU Leave (Effective January 1, 2026)

According to Senate Bill 25-144 (passed June 2025):

  • Parents of children requiring NICU care may receive 12 additional weeks of leave
  • Total potential leave: Up to 24 weeks (12 standard + 12 NICU)
  • Must be used within first year after birth

“Family Member” Definition:

According to statute, family member includes:

  • Child
  • Parent
  • Spouse or domestic partner
  • Grandparent
  • Grandchild
  • Sibling
  • Individual with close association equivalent to family relationship

“Serious Health Condition” Definition:

According to statute, serious health condition generally means:

  • Illness, injury, impairment, or physical or mental condition involving:
    • Inpatient care, OR
    • Continuing treatment by healthcare provider

Source: C.R.S. § 8-13.3-502; Senate Bill 25-144

Benefit Amounts

Calculation Method (from statute and regulations):

FAMLI benefits are calculated on a sliding scale based on the employee’s average weekly wage compared to the state average weekly wage.

2025 Calculation Formula:

According to FAMLI Division (effective January 1, 2025):

State Average Weekly Wage (SAWW): $1,471.34 (as of July 2024; updated July 1, 2025 to $1,534.94)

Benefit Calculation:

  • First 50% of SAWW: Replaced at 90%
  • Remaining wages: Replaced at 50%
  • Maximum Weekly Benefit: $1,324.21 (for claims filed January 1, 2025 or later)

2025-2026 Maximum Benefit Update:

According to FAMLI Division notice (effective July 1, 2025):

  • State Average Weekly Wage: $1,534.94
  • Maximum Weekly Benefit: $1,381.45 (90% of SAWW)

Example Benefit Calculation (Illustrative Only):

Scenario: Employee’s average weekly wage is $1,000

Calculation (using July 2025 SAWW of $1,534.94):

  • First $767.47 (50% of SAWW): $767.47 × 90% = $690.72
  • Remaining $232.53: $232.53 × 50% = $116.27
  • Total Weekly Benefit: $807.00 (approximately)

⚠️ Note: This is a simplified example. Actual calculations use individual’s wage history from previous quarters and current SAWW. Use FAMLI calculator for estimates: https://famli.colorado.gov/individuals-and-families/how-famli-works/premium-and-benefits-calculator

Source: C.R.S. § 8-13.3-506; FAMLI Division guidance; July 2025 SAWW update

Leave Duration

Standard Leave Duration:

According to statute:

  • Up to 12 weeks per benefit year
  • For most types of leave

Extended Leave for Pregnancy Complications:

  • Additional 4 weeks may be available
  • For complications during pregnancy or childbirth
  • Total: Up to 16 weeks

NICU Leave (Effective January 1, 2026):

  • Additional 12 weeks for NICU care
  • Total potential: Up to 24 weeks (12 standard + 12 NICU)

Benefit Year:

According to FAMLI regulations, a benefit year is generally:

  • 52-week period measured backward from claim start date
  • Employee cannot exceed maximum weeks within this period

Intermittent Leave:

FAMLI may be taken intermittently (not continuously) if circumstances warrant. Each period counts toward the maximum weeks.

Source: C.R.S. § 8-13.3-505; Senate Bill 25-144

Job Protection

When Job Protection Applies:

According to C.R.S. § 8-13.3-508:

  • Job protection generally available for employees who have worked for employer for 180 days or more
  • At employers with 10 or more employees

Protection Provided:

Eligible employees are generally entitled to:

  • Return to same or equivalent position
  • Same pay and benefits
  • Same terms and conditions of employment

Health Benefits During Leave:

Employers generally must:

  • Continue health insurance coverage during FAMLI leave
  • On same terms as if employee were working

⚠️ Important: Not all FAMLI leave has job protection. Newer employees (less than 180 days) or those at smaller employers (fewer than 10 employees) may receive wage replacement benefits but not job protection.

Source: C.R.S. § 8-13.3-508

Claiming FAMLI Benefits

Application Process:

According to FAMLI Division, to claim benefits:

  1. Apply through My FAMLI+ portal: https://famli.colorado.gov/
  2. Provide required documentation
  3. Wait for eligibility determination
  4. If approved, receive weekly benefit payments

Required Documentation:

May include:

  • Medical certification for health-related leave
  • Birth certificate or adoption papers for bonding leave
  • Police report or court documents for safe leave
  • NICU documentation (for NICU leave starting 2026)

Timing:

Employees may apply for benefits:

  • Up to 60 days before anticipated leave start
  • Benefits begin when leave begins (not when application submitted)

Employer Notice:

According to FAMLI regulations:

  • Employees should provide notice to employer when practicable
  • FAMLI Division will send determination notice to employer
  • Notice indicates approved leave duration

Source: FAMLI Division claimant guidance

Taxation of FAMLI Benefits

Federal Income Tax:

According to IRS guidance effective for 2025 tax year:

  • FAMLI benefits are subject to federal income tax
  • Taxability may vary based on individual circumstances
  • Consult tax professional for specific situation

State Income Tax:

According to available information, FAMLI benefits may be subject to Colorado state income tax. Verify with tax professional.

Tax Withholding Option:

Starting 2025, claimants have option to:

  • Have 10% of benefits withheld for federal income tax
  • Opt-in or opt-out choice

Form 1099-G:

FAMLI Division will issue Form 1099-G to claimants who received at least $10 in benefits during tax year.

⚠️ Important: Tax treatment of FAMLI benefits is complex. Consult qualified tax professional for advice on specific situation.

Source: FAMLI Division tax guidance; IRS publications

Private Plan Option

Alternative to State Program:

According to statute, employers may apply for approval of private plan that:

  • Provides benefits equal to or greater than state program
  • Provides protections equal to or greater than state program
  • Meets all statutory requirements

Private Plan Requirements:

If approved for private plan, employer:

  • Does not pay premiums to state FAMLI fund
  • Administers benefits directly or through insurer
  • Must still comply with all statutory protections

Application Process:

Employers interested in private plan must:

  • Apply to FAMLI Division for approval
  • Submit detailed plan documentation
  • Receive approval before opting out of state program

⚠️ Note: Private plan approval is a detailed process with strict requirements. Consult FAMLI Division and legal counsel before pursuing.

Source: C.R.S. § 8-13.3-520 et seq.; FAMLI Division private plan guidance

Relationship Between HFWA and FAMLI

HFWA and FAMLI are separate leave programs with different funding and purposes. Understanding their interaction is important.

Key Differences

Feature HFWA Paid Sick Leave FAMLI
Funding Employer pays directly State insurance fund
Amount Full wages Partial replacement (37%–90%)
Duration Up to 48 hours/year Up to 12–24 weeks
Purposes Sick leave, family care, bereavement, etc. Serious health conditions, bonding, safe leave
Medical Certification Only for 4+ day absences Required for most leaves
Job Protection Anti-retaliation (all employees) Job protection (if 180+ days, 10+ employee employer)

Coordination Rules

Simultaneous Use Prohibited:

According to FAMLI regulations and DLSS guidance:

  • Employees generally cannot receive HFWA and FAMLI for the same hours of leave

Supplementation (“Topping Off”):

According to FAMLI regulations:

  • Employee and employer may mutually agree that employee uses accrued paid time off to supplement FAMLI benefits
  • Total payment (FAMLI + PTO) cannot exceed 100% of wages

Example Supplementation (Illustrative Only):

Scenario: Employee on FAMLI receives $800/week (70% of $1,143 average weekly wage)

Supplementation: Employee and employer agree to use accrued PTO to provide additional $343/week so employee receives full wages

⚠️ Important: Supplementation must be by mutual agreement. Employers cannot require use of PTO during FAMLI leave.

Practical Application

Short-Term Absence (1-3 days):

  • Likely covered by HFWA only
  • Employee uses accrued sick leave
  • Employer pays full wages

Extended Medical Leave (multiple weeks):

  • Likely covered by FAMLI
  • Employee receives partial wage replacement from state
  • May supplement with accrued PTO by mutual agreement

Intermittent Care:

  • Both programs may be relevant
  • Employee should consult employer and FAMLI Division

Source: C.R.S. § 8-13.3-403(6); FAMLI regulations; DLSS INFO #6C

Federal Family and Medical Leave Act (FMLA)

Colorado employees may also have rights under federal FMLA in addition to state programs.

FMLA Overview

Federal Law: Family and Medical Leave Act, 29 U.S.C. § 2601 et seq.
Administering Agency: U.S. Department of Labor, Wage and Hour Division
Official Source: https://www.dol.gov/agencies/whd/fmla

General Framework:

According to FMLA:

  • Eligible employees may take up to 12 weeks of unpaid, job-protected leave per year
  • For qualifying reasons similar to FAMLI
  • Unpaid (unless employer policy or state law provides paid leave)

Employer Coverage:

FMLA generally applies to employers with:

  • 50 or more employees
  • Within 75-mile radius

Employee Eligibility:

To be eligible for FMLA, employee generally must:

  • Have worked for employer for 12 months
  • Have worked at least 1,250 hours in previous 12 months
  • Work at location with 50+ employees within 75 miles

Interaction with Colorado Programs

FMLA and FAMLI:

According to federal and state guidance:

  • FAMLI leave and FMLA leave generally run concurrently when both apply
  • Employer may require concurrent designation
  • Job protection provided under both laws (when both apply)

Example Concurrent Leave:

Scenario: Employee taking leave for own serious health condition

  • Meets FMLA eligibility
  • Meets FAMLI eligibility
  • Takes 8 weeks leave

Result:

  • Uses 8 weeks of FMLA entitlement
  • Uses 8 weeks of FAMLI entitlement
  • Receives FAMLI wage replacement benefits
  • Has job protection under both laws

FMLA and HFWA:

FMLA and HFWA serve different purposes:

  • HFWA: Short-term paid sick leave
  • FMLA: Extended unpaid (but job-protected) leave

Generally:

  • HFWA used for shorter absences
  • FMLA for extended qualifying absences
  • May run concurrently if circumstances qualify for both

Source: 29 U.S.C. § 2601 et seq.; DOL FMLA regulations; FAMLI guidance

Other Leave Entitlements

Colorado law provides additional leave protections and entitlements.

Jury Duty Leave

According to Colorado law, employees are generally entitled to time off for jury duty. Employers may not terminate or discipline employees for jury service.

Pay Requirement: Colorado does not require employers to pay wages during jury duty (though some employers voluntarily do).

Source: C.R.S. § 13-71-126, § 13-71-133, § 13-71-134

Voting Leave

According to C.R.S. § 1-7-102, employees may be entitled to time off to vote if their work schedule does not provide sufficient time during polling hours.

Amount: Up to 2 hours paid leave (with some conditions)

Source: C.R.S. § 1-7-102

Victims’ Rights Leave

Colorado law provides leave protections for crime victims to:

  • Attend court proceedings
  • Obtain protective orders
  • Receive medical treatment

Source: C.R.S. § 24-4.1-303(14)

Military Leave

Colorado law provides protections for employees serving in military, including:

  • Reemployment rights after military service
  • Prohibition on discrimination

Federal Law: Uniformed Services Employment and Reemployment Rights Act (USERRA) also applies

Source: C.R.S. § 28-3-601 et seq.; 38 U.S.C. § 4301 et seq.

School Activities Leave

While Colorado does not have specific state law requiring school activities leave, some employers voluntarily provide such leave.

Bereavement Leave

Colorado does not require separate bereavement leave beyond what is covered under HFWA (which includes bereavement as of August 7, 2023).

═══════════════════════════════════════════════════════════════════

Information compiled: December 2025
Sources: Colorado Revised Statutes, HFWA guidance, FAMLI Division, federal law
Next verification due: Laws change frequently—verify current law before making decisions

Workers' Compensation Overview

⚠️ HIGHLY FACT-SPECIFIC AREA: Workers’ compensation coverage and claims involve complex factual and legal determinations. This section provides general background information only. For specific situations, consult Colorado Division of Workers’ Compensation and legal counsel.

Legal Framework

Statutory Authority: Colorado Workers’ Compensation Act, C.R.S. § 8-40-101 et seq. through § 8-47-101 et seq.
Administering Agency: Division of Workers’ Compensation (DOWC)
Contact Information:

General Coverage Requirements

According to Colorado statutes, workers’ compensation coverage is generally described as mandatory for most employers.

Coverage Framework (from C.R.S. § 8-40-202):

The statute generally requires employers to:

  • Maintain workers’ compensation insurance or self-insurance
  • Coverage typically applies to most employees
  • Specific exemptions exist (detailed in statute)

Threshold:

According to statute, coverage requirements may vary based on:

  • Type of business
  • Number of employees
  • Nature of work

Exemptions (from statute):

Certain categories may be exempt or have modified requirements, including:

  • Sole proprietors without employees
  • Corporate officers in certain circumstances
  • Certain agricultural workers
  • Licensed real estate agents
  • Others as specified in statute

⚠️ Important: Exemption determinations are fact-specific. Employers uncertain about coverage obligations should consult DOWC or legal counsel.

Source: C.R.S. § 8-40-202; DOWC guidance

Colorado’s Workers’ Compensation System

According to DOWC materials, Colorado operates a competitive market system where:

  • Employers may purchase insurance from private carriers
  • Employers meeting requirements may self-insure
  • Pinnacol Assurance serves as state-supported option

Benefits Generally Available (from statute):

According to Colorado Workers’ Compensation Act, benefits may include:

  • Medical treatment for work-related injuries
  • Temporary disability benefits (wage replacement during recovery)
  • Permanent disability benefits (for lasting impairments)
  • Death benefits (to dependents of workers killed on job)
  • Vocational rehabilitation (in some circumstances)

No-Fault System:

According to general workers’ compensation principles, the system is generally:

  • “No-fault” – benefits available regardless of who caused injury
  • Exclusive remedy – generally replaces tort lawsuits against employers
  • Exceptions exist in cases of willful injury or other circumstances

Source: C.R.S. § 8-41-101 et seq.; DOWC informational materials

Compensability Standard

Basic Test (from statute and case law):

For an injury to be compensable under Colorado workers’ compensation, it generally must:

  • Arise out of employment (causal connection to work), AND
  • Occur in the course of employment (during work time/activities)

Both elements typically must be present.

“Arising Out Of” (from case law):

Generally refers to:

  • Causal connection between work and injury
  • Risk incidental to employment
  • Not purely personal risks

“In the Course Of” (from case law):

Generally refers to:

  • Time, place, and circumstances of injury
  • During work hours
  • At work location or work-related location
  • While performing work duties

⚠️ Important: These are general principles. Application to specific facts requires detailed analysis. Case law provides extensive interpretation.

Source: Colorado case law; DOWC guidance

Remote Work Coverage Considerations

⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.

General Legal Framework

The Colorado Workers’ Compensation Act does not have specific provisions addressing remote work. Coverage determinations apply the same legal standards but consider the unique context of remote work.

Key Question:

Did the injury arise out of and occur in the course of employment, considering the remote work environment?

Factors That May Be Relevant

According to case law and general principles, factors that may be considered in remote work injury analysis include:

Work Activity Factors:

  • Was employee engaged in work activity at time of injury?
  • Was activity required or expected by employer?
  • Was activity for employer’s benefit?
  • Was injury during designated work hours?

Location Factors:

  • Was injury in designated work area (home office)?
  • Did employer know of and approve home work arrangement?
  • Was home office set up specifically for work?
  • Was location a “work premises” in practical sense?

Authorization Factors:

  • Was remote work authorized or required by employer?
  • Were specific work hours established?
  • What level of control did employer exercise over home work environment?

⚠️ Critical: No single factor is determinative. Analysis requires examining totality of circumstances.

Illustrative Scenarios

Scenario Category: Work Activities in Home Office

Example Situation 1: Employee trips over equipment cord in designated home office while retrieving work documents during established work hours.

General Observations: This type of scenario may share some characteristics with situations that courts have analyzed, such as:

  • Activity was work-related (retrieving documents)
  • Occurred in designated work area
  • During established work hours
  • Equipment related to work

However, compensability would depend on detailed factual analysis including:

  • Whether home office was officially designated
  • Employer’s knowledge and approval of setup
  • Whether employer exercised control over workspace
  • Complete circumstances of injury
  • Other relevant factors

This is not a coverage determination. Actual determination would be made by DOWC based on all facts.

Example Situation 2: Employee develops carpal tunnel syndrome from extended computer use performing work duties at home.

General Observations: Repetitive stress injuries may potentially be compensable in some circumstances if they arise from work activities. Factors that may be relevant include:

  • Medical documentation of work-relatedness
  • Hours and nature of computer use
  • Whether condition developed gradually from work
  • Employer’s knowledge of work activities
  • Other circumstances

This is not a coverage determination. Medical causation and work-relatedness require professional evaluation.

Scenario Category: Personal Activities

Example Situation 3: Employee injured while preparing personal meal in kitchen during lunch break.

General Observations: Personal comfort activities unrelated to work duties may be less likely to be considered work-related under general principles. Factors that may be relevant include:

  • Whether employee was relieved of all work duties
  • Whether kitchen is part of designated work area
  • Nature of lunch break (duty-free or on-call)
  • Other circumstances

This is not a coverage determination. Specific facts matter.

Example Situation 4: Employee injured in home accident while off duty, outside work hours, not engaged in any work activity.

General Observations: Injuries occurring outside work hours while not engaged in work activities would generally not be considered to have arisen out of or occurred in the course of employment under general principles.

This is not a coverage determination.

⚠️ CRITICAL REMINDERS:

  • These scenarios are illustrative examples only
  • They do not constitute legal advice or coverage determinations
  • They do not predict outcomes of actual claims
  • Every claim depends on complete factual circumstances
  • Coverage is determined by DOWC based on all evidence
  • Consult DOWC and legal counsel for actual situations

Reporting Obligations

For Employees:

According to Colorado statute, injured workers generally should:

  • Report injury to employer in writing within 4 working days
  • File claim form (WC 15) with DOWC within 2 years of injury
  • Seek medical attention as needed

Strict Deadlines: These deadlines are generally strictly enforced. Late reporting may affect claim.

For Employers:

According to Colorado regulations, employers who learn of injury generally must:

  • Report to insurance carrier immediately
  • File Employer’s First Report of Injury (WC 1) with DOWC
  • Deadline: Within 10 days after notice or knowledge

Forms Available: https://cdle.colorado.gov/dwc/forms

Source: C.R.S. § 8-43-101 et seq.; DOWC regulations

Best Practices for Remote Work

⚠️ Note: The following are general recommendations only, not legal requirements. Suitability depends on specific circumstances. Consult safety professionals and legal counsel.

For Employers:

  • Consider providing ergonomic guidance or equipment
  • Consider documenting remote work arrangements
  • Consider clear injury reporting procedures
  • Consider safety training for remote workers
  • Consider work hour expectations and documentation

For Employees:

  • Consider setting up dedicated work area
  • Consider documenting work space setup
  • Report injuries promptly
  • Maintain clear work hour boundaries
  • Follow employer safety guidelines

Resources

Colorado Division of Workers’ Compensation:

Legal Assistance:

  • Workers’ compensation attorney
  • Colorado Bar Association Referral: 303-860-1115

⚠️ FINAL CRITICAL REMINDER: Workers’ compensation coverage for remote work injuries is highly specialized and fact-specific. Coverage questions should be directed to:

  1. Colorado Division of Workers’ Compensation for official determinations
  2. Licensed workers’ compensation attorney for legal advice
  3. Medical professionals for injury evaluation

This section is for general background information only and should not be relied upon for coverage determinations.

Colorado Anti-Discrimination Law

Colorado prohibits employment discrimination through state and federal laws.

Colorado Anti-Discrimination Act (CADA)

Statutory Authority: C.R.S. § 24-34-401 et seq.
Administering Agency: Colorado Civil Rights Division
Contact Information:

Protected Classes

According to CADA, discrimination is generally prohibited based on:

  • Race
  • Color
  • Sex (including pregnancy, childbirth, related conditions)
  • Sexual orientation
  • Gender identity and expression
  • Religion
  • National origin
  • Ancestry
  • Creed
  • Age (40 and over)
  • Disability
  • Marital status
  • Military status

Source: C.R.S. § 24-34-402

Covered Employers and Employees

Employer Coverage:

CADA generally applies to employers with:

  • One or more employees (for most discrimination provisions)
  • Some provisions have different thresholds

Employee Coverage:

According to statute, protected employees generally include most workers, with some exceptions for:

  • Independent contractors (depending on circumstances)
  • Certain small businesses’ close relatives
  • Other limited exceptions

Source: C.R.S. § 24-34-401, § 24-34-402

Prohibited Conduct

According to CADA, prohibited discrimination generally includes:

  • Hiring and firing decisions
  • Terms and conditions of employment
  • Compensation
  • Promotion and advancement
  • Harassment creating hostile environment
  • Retaliation for protected activities

Harassment:

Colorado law (C.R.S. § 24-34-402.3) prohibits harassment that:

  • Is based on protected characteristic, AND
  • Alters conditions of employment (no “severe or pervasive” requirement under state law)

⚠️ Important: Colorado’s harassment standard is broader than federal law. Conduct need not be “severe or pervasive” under state law.

Source: C.R.S. § 24-34-402, § 24-34-402.3

Reasonable Accommodation Obligations

Disability Accommodation:

According to CADA, employers are generally described as having obligations to provide reasonable accommodation for qualified individuals with disabilities unless undue hardship.

Religious Accommodation:

Employers generally must accommodate sincerely held religious beliefs unless undue hardship.

Pregnancy Accommodation (POWR Act):

According to Protecting Opportunities and Workers’ Rights (POWR) Act (C.R.S. § 24-34-402.7):

  • Reasonable accommodations required for pregnancy, childbirth, and related conditions
  • Eliminates “inability to work” requirement
  • Broader than federal law

Source: C.R.S. § 24-34-402.5, § 24-34-402.7

Filing Charges

Timing:

Charges must generally be filed with Colorado Civil Rights Division within:

  • 300 days of alleged discrimination

Process:

  1. File charge with Colorado Civil Rights Division
  2. CCRD investigates
  3. Determination of cause or no cause
  4. If cause found, attempt conciliation
  5. Possible hearing before administrative law judge
  6. Possible court action

Source: C.R.S. § 24-34-306; CCRD procedures

Equal Pay for Equal Work Act

Colorado has extensive pay equity and transparency requirements under the Equal Pay for Equal Work Act.

Legal Framework

Statutory Authority: C.R.S. § 8-5-101 et seq.
Part 1 Effective: Long-standing (amended)
Part 2 Effective: January 1, 2021 (pay transparency provisions)
Significant Amendments: January 1, 2024
Official Source: https://cdle.colorado.gov/dlss/labor-laws-by-topic/equal-pay-act

Two-Part Structure

Part 1: Wage Discrimination Prohibition

Prohibits paying different wages based on sex or sex plus another protected class for substantially similar work.

Part 2: Pay Transparency Requirements

Requires disclosure of compensation information in job postings and to current employees.

Part 1: Equal Pay Requirements

General Prohibition (from statute):

According to C.R.S. § 8-5-102, employers are generally prohibited from discriminating in pay between employees performing substantially similar work based on:

  • Sex, OR
  • Sex plus: age, race, creed, color, religion, national origin, ancestry, or disability

“Substantially Similar Work” (from statute):

Work is considered substantially similar when:

  • Performed under similar working conditions, AND
  • Involves substantially similar skill, effort, and responsibility

Permitted Pay Differences:

Pay differences may be permissible based on:

  • Seniority system
  • Merit system
  • System measuring earnings by quantity or quality of production
  • Bona fide factors other than sex (if job-related and consistent with business necessity)

Source: C.R.S. § 8-5-102

Part 2: Pay Transparency Requirements

⚠️ Important: Pay transparency requirements are extensive and have compliance implications for hiring, promotion, and advancement practices.

Job Posting Requirements (from statute):

According to C.R.S. § 8-5-103, employers must include in every job posting:

  1. Compensation range (hourly or salary)
  2. General benefits description
  3. Application deadline (if any)
  4. How to submit application

“Job Posting” Definition:

According to statute, job posting includes:

  • Internal or external announcements of job openings
  • Electronic or physical postings
  • Any solicitation for applicants

Remote Work Implications:

According to DLSS guidance, the Act generally applies to:

  • Positions that could be performed in Colorado
  • Even if specific hire will be remote/out-of-state
  • “Colorado jobs” broadly interpreted

⚠️ Common Question: Many employers wondered whether remote-eligible positions must include Colorado salary ranges. According to DLSS guidance, if the position could potentially be performed by someone in Colorado, disclosure is generally required.

Source: C.R.S. § 8-5-103; DLSS guidance

Job Opportunity Notifications

Requirement (from statute):

According to C.R.S. § 8-5-105, employers must notify current employees of:

  • All job opportunities (promotion opportunities)
  • Before making selection decisions

Method:

Notifications may be made through:

  • Posting in workplace
  • Email distribution
  • Intranet posting
  • Other methods ensuring notice to all Colorado employees

Post-Selection Notice:

After filling position, employers must notify employees of:

  • Who was selected
  • How to express interest in similar future opportunities

Exemption for Small Remote Employers:

According to 2024 amendments, employers with:

  • No physical presence in Colorado, AND
  • Fewer than 15 remote Colorado employees

Are exempt from job opportunity notification requirements until July 1, 2029 (but must still comply with posting requirements).

Source: C.R.S. § 8-5-105; 2024 amendments

Career Progression Information

Requirement (from statute):

For positions with defined career progression paths, employers must provide:

  • Requirements for advancement
  • Compensation for each level

Source: C.R.S. § 8-5-106

Anti-Retaliation Protection

According to statute, employers are prohibited from:

  • Retaliating against employees for discussing wages
  • Interfering with exercise of rights under Act
  • Disciplining employees for requesting equal pay
  • Retaliating for filing complaint

Source: C.R.S. § 8-5-110

Enforcement

Filing Complaints:

Employees may file complaints with:

Potential Remedies (from statute):

According to statute, remedies may include:

  • Back pay and benefits
  • Fines payable to employee ($500-$10,000 per violation)
  • Reasonable attorney fees and costs

Source: C.R.S. § 8-5-113

Other Employment Protections

Lawful Off-Duty Activities

According to C.R.S. § 24-34-402.5, employers generally may not terminate or discipline employees for lawful activities off premises during non-working hours, including:

  • Use of lawful products (tobacco, marijuana, alcohol, etc.) when off-duty
  • Other lawful activities

Exceptions: Employers may have restrictions if:

  • Bona fide occupational requirement
  • Necessary to avoid conflict of interest
  • Other statutory exceptions

Source: C.R.S. § 24-34-402.5

Restrictive Covenants

Colorado has restrictions on non-compete agreements and other restrictive covenants.

Non-Compete Agreements (from C.R.S. § 8-2-113):

Generally void and unenforceable unless:

  • Employee is highly compensated (earning above threshold set annually)
  • For executives and certain professionals meeting statutory criteria
  • Other limited exceptions

2025 Highly Compensated Threshold: $127,091 (from PAY CALC Order)

Customer Non-Solicitation:

Non-solicitation of customers may be permissible if:

  • Employee earns at least 60% of highly compensated threshold
  • Other requirements met

Source: C.R.S. § 8-2-113; PAY CALC Order 2025

Whistleblower Protections

According to Colorado Whistleblower statutes, employees are generally protected from retaliation for:

  • Reporting violations of law or regulation
  • Participating in investigations
  • Refusing to engage in illegal conduct

Source: C.R.S. § 24-50.5-101 et seq.; WARNING Rules (7 CCR 1103-11)

Background Check Restrictions

Colorado has various restrictions on background checks including:

  • Ban-the-box provisions for certain employers
  • Restrictions on criminal history inquiries
  • Fair chance hiring considerations

Source: Various Colorado statutes and local ordinances

═══════════════════════════════════════════════════════════════════

Information compiled: December 2025
Sources: Colorado Revised Statutes, DOWC guidance, CCRD materials, DLSS guidance
Next verification due: Laws change frequently—verify current law before making decisions

Tax Information and Implications

Colorado State Income Tax

General Structure:

According to Colorado Department of Revenue, Colorado has a flat income tax rate:

  • 2025 Rate: 4.40%
  • Applied to Colorado taxable income
  • Subject to legislative changes

Colorado Taxable Income:

Generally based on federal taxable income with Colorado-specific modifications.

Source: Colorado Department of Revenue – https://tax.colorado.gov/

Income Tax for Remote Workers

General Principle:

Income taxation typically depends on:

  • Where worker resides (residence-based taxation)
  • Where work is physically performed (source-based taxation)
  • Employer location (generally not determinative for individual income tax)

Colorado Residents:

Generally pay Colorado income tax on all income, regardless of where earned.

Non-Residents Working in Colorado:

May owe Colorado income tax on income earned while physically working in Colorado.

Colorado Residents Working Remotely for Out-of-State Employers:

Generally owe Colorado income tax on income (unless working in state with higher tax that provides credit).

Multi-State Situations:

Can be complex, involving:

  • Potential taxation by multiple states
  • Credits for taxes paid to other states
  • Reciprocity agreements (Colorado has limited reciprocity)
  • Specific allocation rules

⚠️ Important: Multi-state tax situations require professional tax advice. Do not make assumptions.

Employer Tax Obligations

Withholding (General Framework):

Employers with Colorado employees generally must:

  • Withhold Colorado income tax from wages
  • Remit withholdings to Colorado Department of Revenue
  • File periodic returns

Unemployment Insurance Tax:

Employers generally must:

  • Pay Colorado unemployment insurance tax
  • For employees performing services in Colorado
  • Rates vary by employer experience

FAMLI Premiums:

As discussed in Part 3:

  • 0.88% of wages for 2026 (0.44% employer + 0.44% employee for most employers)
  • Premiums due quarterly

Workers’ Compensation:

Premiums owed to insurance carrier or self-insurance fund (not a “tax” but mandatory cost).

⚠️ Important: Employer tax obligations are complex and penalties for non-compliance can be significant. Consult tax professionals and Colorado Department of Revenue.

Federal Tax Considerations

FICA (Social Security and Medicare):

Required withholding and employer contributions on employee wages.

Federal Income Tax Withholding:

Required based on employee’s W-4 elections.

Federal Unemployment Tax (FUTA):

Employer obligation with credit for state unemployment tax paid.

Independent Contractor Reporting:

If workers are properly classified as independent contractors, reporting on Form 1099-NEC (not W-2).

⚠️ Reminder: Worker misclassification (covered in Part 1) has significant tax consequences.

Home Office Deductions

For Employees (Post-Tax Cuts and Jobs Act):

Generally, W-2 employees cannot deduct home office expenses for tax years 2018-2025 under current federal tax law.

For Self-Employed/Independent Contractors:

May be able to deduct home office expenses if:

  • Space is used regularly and exclusively for business
  • Other IRS requirements met

State Tax Treatment:

Colorado generally follows federal treatment but consult tax professional.

Source: IRS Publication 587 (Home Office Deduction)

Tax Resources

Colorado Department of Revenue:

Internal Revenue Service:

Professional Assistance:

  • Licensed CPA
  • IRS Enrolled Agent
  • Tax Attorney

Data Privacy and Monitoring Considerations

Remote work raises data privacy and monitoring issues for employers and employees.

Colorado Privacy Laws

Colorado has enacted privacy legislation affecting employment data.

Colorado Privacy Act (CPA):

Effective July 1, 2023, the CPA generally:

  • Applies to businesses meeting revenue/data processing thresholds
  • Provides consumer privacy rights
  • Has specific provisions for employee data
  • Requires certain privacy notices and practices

Applicability to Employment Data:

The CPA has different rules for employee data versus consumer data. Employment-related data processing has some exemptions but also requirements.

Source: C.R.S. § 6-1-1301 et seq.; Colorado Attorney General guidance

Employee Monitoring and Transparency

General Legal Framework:

Colorado law has provisions regarding employee monitoring and transparency.

Electronic Monitoring:

According to general principles:

  • Employers may monitor business communications on employer-provided equipment
  • Notice and consent requirements may apply
  • Privacy expectations in personal vs. work communications
  • Specific Colorado transparency requirements

Best Practices (Recommendations Only):

For Employers:

  • Provide clear notice of monitoring practices
  • Obtain employee consent where appropriate
  • Limit monitoring to business purposes
  • Consult privacy counsel for policies

For Employees:

  • Understand employer’s monitoring policies
  • Avoid personal use of work systems if possible
  • Ask questions if monitoring practices unclear

Source: Various Colorado statutes; privacy law principles

Data Security Obligations

Employers generally have obligations to:

  • Protect employee personal information
  • Implement reasonable security measures
  • Notify of data breaches in some circumstances
  • Comply with federal and state data security laws

Colorado Data Breach Notification:

C.R.S. § 6-1-716 requires notification of security breaches affecting personal information.

Source: C.R.S. § 6-1-716; other data security provisions

Recording Considerations

Consent for Recording:

Colorado is a “one-party consent” state for recording conversations, meaning:

  • At least one party to conversation must consent
  • Recording without any party’s consent may violate wiretapping laws

Workplace Recordings:

Employers should:

  • Have clear policies on recording meetings
  • Obtain consent when appropriate
  • Consult legal counsel on recording practices

Source: C.R.S. § 18-9-303 (wiretapping statute)

Resources

Colorado State Agencies

Colorado Department of Labor and Employment (CDLE)

Division of Labor Standards and Statistics

Division of Workers’ Compensation

Division of Family and Medical Leave Insurance (FAMLI)

Division of Unemployment Insurance

Colorado Civil Rights Division

Colorado Department of Revenue

Federal Agencies

U.S. Department of Labor

Equal Employment Opportunity Commission (EEOC)

Internal Revenue Service

National Labor Relations Board

Legal Assistance

Colorado Bar Association

Legal Aid Organizations

Informational Resources

CDLE Published Guidance:

FAMLI Resources:

Workers’ Compensation Resources:

⚠️ Note: Agency contact information was current as of December 2025 but may change. Verify current contact information on agency websites.

Frequently Asked Questions (FAQ)

The following questions and answers provide general information only. They do not constitute legal advice. Consult appropriate agencies and professionals for specific situations.

Classification and Employment Status

Q1: How do I know if my remote worker should be classified as an employee or independent contractor?

A: Classification depends on applying statutory tests to your specific circumstances. Colorado uses various tests depending on context (unemployment insurance, workers’ compensation, wage-hour law, federal tax). Generally, factors include degree of control, whether worker is engaged in independent business, and other elements. Classification decisions should be made with guidance from employment attorney, tax professional, and relevant agencies. See Part 1 for detailed discussion.

Q2: Can a worker be an independent contractor for tax purposes but an employee for wage-hour purposes?

A: Different agencies apply different tests, so theoretically different classifications could result. However, this creates compliance risks. If classification is uncertain, consult professionals for comprehensive analysis across all relevant laws.

Q3: Does signing an independent contractor agreement make someone an independent contractor?

A: No. Actual working relationship and statutory factors determine classification, not the title in a contract. Agencies and courts will look at the economic reality of the relationship.

Minimum Wage and Overtime

Q4: Which minimum wage applies to my remote worker in Colorado?

A: Generally, the minimum wage where work is physically performed applies. If worker works from Denver, Denver’s local minimum wage ($18.81/hour in 2025, $19.29/hour in 2026) would generally apply. If worker works from area with no local minimum wage, state minimum applies. Verify worker’s specific location and applicable local laws.

Q5: Do I have to pay overtime if my remote employee works more than 8 hours in a day?

A: Colorado requires overtime after 12 hours in a workday (or 12 consecutive hours), not 8 hours. However, overtime is also required after 40 hours in a workweek. Whichever provides greater overtime pay applies. See Part 2 for details.

Q6: Can I give comp time instead of paying overtime to remote workers?

A: Generally no. Colorado law prohibits private employers from providing comp time in lieu of overtime pay. Public sector employers may have different rules under federal law.

Q7: How do I track hours for remote employees?

A: Employers are responsible for tracking hours worked. Options include time tracking software, self-reporting systems, or other methods. Employers must pay for all hours worked, including hours they “knew or should have known” employee worked.

Paid Sick Leave (HFWA)

Q8: Do I have to provide paid sick leave to my remote Colorado employees?

A: Generally yes, if they work in Colorado. The HFWA applies to virtually all Colorado employers regardless of size. Remote workers performing work from Colorado locations would typically be covered.

Q9: Can I use my existing PTO policy instead of HFWA?

A: Possibly, if your PTO policy provides at least as much leave, allows use for same purposes, and meets all other HFWA requirements. Simply having a PTO policy doesn’t automatically ensure compliance. Consult DLSS INFO #6 series for detailed guidance.

Q10: Do I have to pay out unused sick leave when employee terminates?

A: Generally no. Unlike vacation (which must be paid out under Colorado wage law), HFWA sick leave does not need to be paid out at termination.

FAMLI

Q11: Do I have to pay FAMLI premiums for remote workers who live in other states?

A: It depends on where they work. If workers physically perform work in Colorado, FAMLI premiums generally apply. If workers are permanently located and working in other states, consult FAMLI Division for guidance on your specific situation.

Q12: How do I know if I’m required to pay the employer portion of FAMLI premiums?

A: Count your total employees nationwide who worked 20 or more calendar weeks in the prior year. If 10 or more, you must pay employer portion (0.44% in 2026). If fewer than 10, you are not required to pay employer portion but must still collect and remit employee portion.

Q13: Can employees use both HFWA and FAMLI for the same absence?

A: Not for the same hours. However, employee and employer can mutually agree to supplement FAMLI benefits with accrued PTO so employee receives closer to full pay.

Q14: Is FAMLI leave paid or unpaid?

A: FAMLI provides partial wage replacement (37%-90% of wages, up to cap) paid by state insurance fund. It is not full pay, and employer does not pay wages during FAMLI leave (unless voluntarily supplementing).

Workers’ Compensation

Q15: Are remote workers covered by workers’ compensation?

A: It depends on whether injury arose out of and occurred in the course of employment. This is highly fact-specific. Injuries while performing work duties in designated home office during work hours may be more likely to be considered compensable than injuries during personal activities. Each claim requires individual analysis by Division of Workers’ Compensation.

Q16: What should a remote worker do if injured while working from home?

A: Report injury to employer in writing within 4 working days, seek medical attention, and file claim form (WC 15) with DOWC. Document circumstances of injury. Consult workers’ compensation attorney if questions arise.

Equal Pay and Pay Transparency

Q17: Do I have to include salary ranges in job postings for remote positions?

A: Generally yes, if position could be performed by someone in Colorado. Colorado’s Equal Pay for Equal Work Act broadly interprets “Colorado jobs.” Even if you’re hiring someone who will work remotely from another state, if position could theoretically be performed from Colorado, disclosure is generally required.

Q18: What happens if I don’t include pay ranges in job postings?

A: Violations can result in fines ($500-$10,000 per violation) payable to affected individuals, plus potential attorney fees. DLSS enforces these requirements.

Q19: Do small businesses have to comply with pay transparency?

A: Yes, with limited exception. Employers with no physical presence in Colorado and fewer than 15 remote Colorado employees are exempt from job opportunity notification requirements until July 1, 2029, but must still comply with job posting disclosure requirements.

Tax Questions

Q20: Do Colorado remote workers pay Colorado income tax?

A: Colorado residents generally pay Colorado income tax on all income regardless of where earned. Non-residents working in Colorado may owe Colorado tax on income earned while working in Colorado. Multi-state situations can be complex – consult tax professional.

Q21: Can remote employees deduct home office expenses?

A: Generally, W-2 employees cannot deduct home office expenses under current federal tax law (2018-2025). Self-employed individuals may be able to deduct if they meet IRS requirements. Consult tax professional.

Q22: Who pays for internet and equipment for remote workers?

A: Colorado law does not specifically require reimbursement, but employers generally cannot require expenses that would reduce effective pay below minimum wage. Some employers voluntarily reimburse. Establish clear policies and consult employment counsel.

Multi-State Employment

Q23: Can I hire someone who lives in Colorado to work remotely for my out-of-state company?

A: Yes, but you’ll need to comply with Colorado employment laws for that employee, including registering for Colorado unemployment insurance, FAMLI, and complying with wage-hour laws, pay transparency, etc. Consult employment counsel for multi-state compliance.

Q24: What if my Colorado employee temporarily works from another state?

A: Short-term, temporary work in another state may not trigger other state’s requirements, but longer-term or permanent relocation raises complex questions about which state’s laws apply. Consult employment and tax counsel.

Compliance and Policies

Q25: Do I need a written remote work policy?

A: Not legally required, but strongly recommended for clarity on expectations, hours, equipment, reimbursement, data security, and other issues. Consult employment counsel for policy development.

Q26: Can I require remote employees to come into office sometimes?

A: Yes, if position was not hired as fully remote. “Hybrid” arrangements are permissible. Ensure clear communication about expectations. Consider reasonable accommodation obligations for employees with disabilities.

Q27: Can I monitor my remote employees’ computer activity?

A: Generally yes, on employer-provided equipment, but consider transparency requirements and employee privacy concerns. Provide clear notice of monitoring practices. Consult privacy counsel for policy development.

Q28: What records must I keep for remote employees?

A: Same records as on-site employees: hours worked (for non-exempt), wages paid, deductions, pay statements, etc. Must be maintained for at least 3 years. Additional records may be needed for FAMLI, unemployment insurance, workers’ compensation.

Enforcement and Complaints

Q29: What should I do if employee files wage complaint against me?

A: Respond promptly and thoroughly to DLSS. Provide documentation supporting your position. Consider consulting employment attorney. Do not retaliate against employee for filing complaint.

Q30: How long do employees have to file complaints?

A: Varies by type of claim:

  • Wage claims: 2 years for non-willful violations, 3 years for willful violations
  • CADA discrimination: 300 days
  • HFWA: Check statute for specific limitation period
  • Always consult relevant statute and agency for specific deadlines

Final Questions

Q31: Where can I get help understanding my obligations as remote employer in Colorado?

A: Primary resources:

  • Division of Labor Standards and Statistics: (303) 318-8441
  • FAMLI Division: 1-866-263-2654
  • Employment attorney for legal advice
  • HR consultant for policy development
  • Accountant/CPA for tax matters

Q32: This guide is very long. What are the most important things to know?

A: Priority compliance areas:

  1. Classify workers correctly (employee vs. contractor)
  2. Pay at least applicable minimum wage (state or local)
  3. Pay overtime properly (40 hours/week OR 12 hours/day)
  4. Provide required meal and rest breaks
  5. Provide paid sick leave under HFWA
  6. Register and pay FAMLI premiums
  7. Include pay ranges in job postings
  8. Maintain workers’ compensation insurance
  9. Don’t discriminate or retaliate
  10. When in doubt, consult professionals

Others

California
Washington
Utah
Arizona
Oregon

Legal Disclaimer: This guide provides general background information only and does not constitute legal, tax, or professional advice. Employment laws are complex and subject to interpretation. Consult licensed legal counsel and official state agencies for guidance specific to your situation.