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Denver, CO Payroll Rules

Local payroll and employment requirements that differ from or exceed Colorado state law

Last updated: January 2025

Minimum Wage
$18.29
Tipped: $15.27
Paid Sick Leave
1 hour per 30 hours worked
Max: 48 hours

Minimum Wage

Current Rate$18.29/hour
Tipped Employees$15.27/hour

Significantly higher than state minimum. Adjusted annually for CPI. Tipped minimum is $3.02 below standard rate. Applies to all employers regardless of size.

Scheduled Increases

January 1, 2026$18.81/hour

Paid Sick Leave

Accrual Rate
1 hour per 30 hours worked
Maximum Accrual
48 hours
Maximum Annual Use
48 hours per year
Waiting Period
None (may use as accrued)

Follows Colorado Healthy Families and Workplaces Act. Additional 80 hours for public health emergencies. Includes safe time for domestic violence, sexual assault, or stalking.

Local Taxes

Occupational Privilege Tax (OPT)$5.75/month employee + $4.00/month employer

Monthly head tax on employees earning $500+ and their employers. Must withhold from employee wages and remit both portions.

Denver Sales Tax4.81%

City sales tax in addition to state and RTD taxes. Total combined rate varies by location.

Additional Local Requirements

Wage TheftEffective: 2020

Wage Theft Prevention

Denver enforces state wage theft laws with local resources. Penalties include back wages, interest, and civil penalties.

Ban the BoxEffective: 2019

Chance to Compete Act (State)

Colorado state law (not Denver specific) prohibits criminal history inquiries on initial application. Applies to most employers.

Equal PayEffective: 2021

Pay Transparency

Per Colorado law, job postings must include salary range. Applies to jobs that could be performed in Denver remotely or in person.

Official Resources

Important Note

These local rules apply in addition to Colorado state law. Employers must comply with whichever law provides greater protection to employees. Always verify current requirements with official sources.