Payroll Compliance Guide

Colorado Payroll Compliance Guide

Complete Reference for Multi-State Employers

Last updated: February 2026 • 60+ requirements covered

Key Facts at a Glance

RequirementColorado Rule
Minimum Wage$15.16/hour (2026); Denver $19.29
Tipped Minimum$12.14 + tips (2026)
Overtime Threshold40 hrs/week AND 12 hrs/day
Final Pay (Termination)Immediately
Final Pay (Resignation)Next regular payday
PTO Payout Required?Yes (vacation is earned wages)
Pay Frequency MandateMonthly, semi-monthly, or more frequent
State Income TaxYes (4.4% flat rate)
Unemployment InsuranceYes
State Disability InsuranceNo (FAMLI covers some)
Paid Family Leave (FAMLI)Yes (starting 2024)
Paid Sick LeaveYes (48 hours/year)
Workers' Comp RequiredYes (all employers)

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Local Jurisdiction Rules

Denver has a higher minimum wage and local occupational privilege tax that employers must withhold.

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Looking for a different view? Check out the Colorado Payroll Laws overview page with final paycheck, vacation payout, and wage & hour details.