New Employment Laws in Colorado: What HR Pros Need to Know
More than 3.1 million people are employed in Colorado, and with an average annual household income of $119,073, they fall within the country’s top 20%. Colorado is renowned for the breathtaking scenery of its Rocky Mountains, outdoor fun, and thriving economy, spanning real estate and the tech sector to leading aerospace industries.
Colorado is innovative in its employment laws. For example, the Job Application Fairness Act (JAFA), enacted July 1, 2024, prevents employers from asking candidates to share any age-related information, including dates related to birth and education, on their initial job applications, so age discrimination is less likely to happen. This is just one example of the ever-changing landscape of labor-related regulations that employers have to understand and follow.
While you may enjoy a trek up Colorado’s historic 14,100-foot Pikes Peak, keeping your head in the clouds about Colorado’s updated employment laws could have dangerous consequences. Lawsuits, financial penalties, reputational damage, diminished employee satisfaction, productivity, and retention are just some of the potential risks your company could face by disregarding Colorado employment law
Colorado labor statistics
- Top industries (by % GDP):
- Real estate and rental and leasing ($82.5 billion)
- Professional, scientific, and technical services ($70.2 billion)
- Government ($59.3 billion)
- $529.1 billion GDP (the 15th largest in the US)
- 3.8% unemployment rate (US rate 4%)
- 55,400 net payroll jobs added from May 2023 to May 2024
Colorado labor laws employers need to know
Agricultural labor laws:
Colorado's 2021 Agriculture Overtime & Labor Conditions Act strives to ensure fair treatment and adequate working conditions for agricultural workers. Below are some of the provisions of that evolving legislation.
Overtime pay:
The threshold for overtime pay in 2024 is 50 hours. This is a significant decrease from 60 hours in 2021, but it will decrease further to 48 hours in 2025.
Paid breaks:
Every four hours, agricultural workers must take 10-minute, paid breaks. If the workday is more than 12 hours, a third paid rest break must be 30 minutes. If the work week passes 60 hours, an additional one-hour break is mandated, and if it’s more than 70 hours, two one-hour breaks must be provided.
Health and safety:
When agricultural worksite temperatures reach or are expected to exceed 80 degrees, employers must provide each worker with at least 32 ounces of water that is 60 degrees or colder, plus a shaded resting area.
Union participation:
Colorado is unique from the other states with its Labor Peace Act of 1943. This act requires two elections to approve a "union security" agreement. The first vote needs a simple majority to pass. The second vote, needing at least 75% approval, is required to finalize the "union security" rule.
Notification:
Employers must also advise workers of their rights by prominently posting workplace notices about the Colorado Overtime and Minimum Pay Standards (COMPS) order, paid leave, and whistleblower rules. Retaliation against any employee raising a concern in these areas is specifically prohibited.
Child labor:
In June 2024, Colorado enacted changes to the Colorado Youth Employment Opportunity Act of 1971, substantially increasing penalties for violations and requiring payment to both the aggrieved individual and the state’s wage theft enforcement fund. That makes it even more important for employers to ensure compliance with rules, which include:
- A minimum age requirement of 14 for most jobs
- Work hour rules that prevent minors aged 16 to 17 from working past midnight when they have school the next day
- A variety of stricter limits, such as three-hour work days on school days for minors aged 14 and 15
Family and Medical Leave Insurance (FAMLI):
Life happens. When birth or adoption, serious health conditions, family caregiving, or other qualifying circumstances require extra time away from work, Colorado workers have a new option to maintain their employment—and wages—under the Family and Medical Leave Insurance (FAMLI) program.
Effective January 1, 2024, in addition to the federal unpaid Family and Medical Leave Act (FMLA) provisions, employees in Colorado can take advantage of the state’s paid FAMLI benefits. FAMLI allows for up to 12 weeks of leave for approved reasons, plus another four weeks for pregnancy or childbirth issues. Employees can receive a portion of their wages each week, they can return to the same or a similar job, and they won’t have to exhaust other paid leave first.
More than 62,000 people have already accessed FAMLI benefits, easing the mental and financial burdens of taking care of themselves and the people who matter most in their lives.
Minimum wage:
Everybody may be working for the weekend – but they’ll need a fair paycheck to make it worthwhile! In Colorado, according to the 2024 PAY CALC (Calculation of Adjusted Labor Compensation) Order, the current minimum hourly wage is $14.42, with premium pay available in certain industries after 12 hours of work in a day or 40 hours in a week. Other minimum pay levels apply to employees who also earn tips ($11.40/hour), non-emancipated minors ($12.26/hour), and agricultural range workers ($14.77/hour).
However, some jurisdictions have their own higher hourly minimums. Employees in the capital city of Denver, for example, have a minimum wage of $18.29/hour ($15.27 with tips) That’s why having accurate, up-to-date information, perhaps through BambooHR’s versatile platform, is critical for the state’s employers to pay their team members properly.
Pay transparency:
Information is power, and pay transparency laws put the power in employees’ hands, so job postings tell them exactly what compensation is included in an opportunity. In 2019, Colorado was the first state to implement such regulations with its Equal Pay for Equal Work Act. In addition to ensuring employees with similar qualifications performing similar roles receive similar compensation, the legislation requires job listings to include “a general description of all of the benefits and other compensation to be offered,” plus the relevant hourly or salary compensation range.
As of January 1, 2024, the law requires:
- Including compensation, benefits, and application process and deadlines in all job postings
- Announcing all job openings to all employees
- Informing eligible employees about career advancement opportunities
- Announcing the selected candidate internally within 30 days
Gone are the days of a simple “Help Wanted” sign—be sure your hiring team understands and follows the latest rules to comply with regulations and maintain the positive culture your company needs to succeed.
Stay ahead of compliance updates with BambooHR®
BambooHR can help your company comply with the state’s employment laws so you can enjoy peace of mind and kick back with a Colorado signature craft brew and bison burger. With our powerful information management platform, you’ll enjoy the convenience of centralized employee records, automated workflows, and compliance tracking for current state and federal laws, including the Fair Labor Standards Act (FLSA), the Health Insurance Portability and Accountability Act (HIPAA), and Equal Employment Opportunity (EEO) requirements.