Colorado Labor Laws: Minimum Wage, Daily Overtime, Breaks and Paid Sick Leave

Those are the headline rules, as of October 2026. Colorado's stricter than federal law in several places, and the daily overtime rule is the one employers from other states don't see coming. This summary uses the Colorado Division of Labor Standards and Statistics and the US Department of Labor's state tables, read in October 2026.

Colorado labor laws at a glance

Rule	Colorado (as of October 2026)	Federal baseline
Minimum wage	$15.16 an hour, or a higher local rate	$7.25
Tipped cash wage	$12.14, with a tip credit of $3.02	$2.13
Overtime	After 12 hours a day or 40 a week	After 40 a week only
Rest breaks	Paid 10 minutes per 4 hours	None required
Meal period	30 minutes when a shift is over 5 hours	None required
Paid sick leave	1 hour per 30 worked, up to 48 a year	None required

Colorado's wage and overtime rules come from the Colorado Overtime and Minimum Pay Standards Order, known as the COMPS Order, alongside the Colorado Wage Act and the Equal Pay for Equal Work Act. The Division also says workers must get the applicable Colorado or local minimum wage, so a city can set a higher rate. For the wage on its own, my Colorado minimum wage guide goes into the detail.

Daily overtime: the rule out-of-state employers miss

Here's the insight that catches businesses expanding into Colorado. Federal law only counts the week. Colorado counts the day too. A worker who does three 13-hour shifts has only worked 39 hours, so there's no weekly overtime, but each of those shifts went past 12 hours, so the hours over 12 are overtime in Colorado. Payroll set up for a 40-hour week alone will underpay.

Breaks, step by step

1. Give a paid 10-minute rest period for each 4 hours worked, or major fraction of 4 hours, placed near the middle of the work period where practical.
2. On a shift of more than 5 consecutive hours, give a 30-minute meal period.
3. If the work stops the employee being relieved of all duties, an on-duty meal period is allowed, but it counts as time worked and is paid.
4. Check the COMPS Order for the employees it exempts before you assume a role is covered.

For how Colorado compares with other states, my lunch break laws by state guide sets them side by side.

Paid sick leave under the Healthy Families and Workplaces Act

The Colorado Healthy Families and Workplaces Act gives two kinds of paid sick leave: accrued leave and public health emergency leave, which isn't in effect right now. For accrued leave, employers must provide at least 1 hour of paid leave for every 30 hours worked, up to 48 hours a year. Employees take it with full pay and have the right to return to work without negative consequences.

Getting paid, and what happens if you aren't

• Employers must pay all wages earned at the rate agreed, plus at least the minimum wage and all overtime, without deductions the law doesn't allow.
• A worker who's owed wages can send the employer a written demand by mail, email, text message or another electronic method.
• The worker can file a Labor Standards Complaint Form with the Division at the same time.
• Under the Wage Theft Transparency Act, final findings that an employer broke Colorado wage law are made public.

The US Department of Labor's payday table lists Colorado among states that allow monthly paydays. When someone leaves, check my final paycheck rules by state before you cut the last cheque.

Common Colorado labor law mistakes

• Running overtime on a weekly basis only and missing the 12-hour daily trigger.
• Treating rest breaks as unpaid, when Colorado's 10-minute rest periods are paid.
• Paying the state minimum in a city that sets a higher local rate.
• Waiting to set up sick leave instead of accruing it from the first shift.
• Ignoring a written wage demand sent by text or email.

Where to check the Division's thinking

Colorado's labour regulator publishes two kinds of guidance. INFOs are its officially approved notices, opinions and explanations on labor law topics, and they're what you'd read before changing a pay policy. KNOWLEDGEs are one-page summaries for employees on their rights. The Division can also run its own employer-wide direct investigations, not just respond to complaints, and it takes tips by email.

Hiring under-18s

The Colorado Youth Employment Opportunity Act, in Title 8, Article 12 of the Colorado Revised Statutes, governs the work of all minors under 18. It limits hours and the kinds of jobs minors can do. Employers, minors, parents, schools or youth employment specialists can ask the Division for an exemption from some limits, and federal youth rules may apply on top.

My verdict

Colorado is one of the more worker-friendly states, and it shows in the detail: paid rest breaks, daily overtime and 48 hours of paid sick leave. If you run payroll there, set it up for the day as well as the week, put the breaks on the rota, and track sick leave from the first shift. That's most of what goes wrong, and it's all fixable before it costs you.

Frequently asked questions

What is the minimum wage in Colorado?

The state minimum wage is $15.16 an hour as of October 2026, and some local areas set higher rates.

Does Colorado have daily overtime?

Yes. Overtime is due after 12 hours in a day or 40 hours in a week, so long shifts can earn overtime even in a short week.

Are breaks required in Colorado?

Yes. Most workers get a paid 10-minute rest period for each 4 hours worked and a 30-minute meal period when a shift is over 5 consecutive hours.

How much paid sick leave do Colorado employers have to give?

At least 1 hour of paid leave for every 30 hours worked, up to 48 hours a year.

What is the tipped minimum wage in Colorado?

The cash wage is $12.14 an hour with a tip credit of $3.02, as of October 2026.