As of January 2026, the minimum wage in Colorado is $15.16 per hour, where no higher local minimum wage applies. Tipped employees must be paid at least $12.14 per hour, but employers must ensure wages and tips combined equal at least the minimum wage. Colorado's minimum wage adjusts periodically with economic conditions and cost of living — check the Colorado Department of Labor and Employment for the latest rates.
According to the U.S. Bureau of Labor Statistics, the average hourly wage in Colorado is $30.38. Wages vary by occupation, industry, and location.
The estimated living wage in Colorado is $26 per hour. A living wage represents the estimated hourly rate needed to cover basic living expenses, including housing, food, transportation, healthcare, and other essential costs.
A guide to hourly labor laws in Colorado
$15.16 if no higher local minimum wage applies (7 Colo. Code Regs. § 1103-1-3) (Colorado Department of Labor and Employment).
$12.14 with tip credit of $3.02 if no higher local minimum wage applies. Wage and tips must total at least minimum wage (Colorado Department of Labor and Employment).
Non-exempt employees receive 1.5 times their regular rate for hours exceeding 40 in a workweek or 12 in a workday (7 Colo. Code Regs. § 1103-1-3).
Federal law allows unpaid, non-working, bona-fide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL). State law requires a 30-minute unpaid meal break for shifts over five hours (Colorado INFO #4) (7 Colo. Code Regs. § 1103-1-5).
A 10-minute paid rest break for every four hours worked. Breaks should be provided in the middle of the work period when possible (7 Colo. Code Regs. § 1103-1-5). Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
Colorado employers may only make wage deductions that are required by law, authorized in writing, or for other specific purposes, such as retirement plan contributions. Deductions for cash shortages and losses must be authorized in writing. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (29 C.F.R. § 4.168) (29 US Code § 203) (Colo. Rev. Stat. § 8-4-105).
- Termination: Immediately.
- Resignation: By the next regular payday (Colo. Rev. Stat. § 8-4-109).
Employees must be paid at least once per month on regular paydays no later than 10 days after the close of the pay period (Colo. Rev. Stat. § 8-4-103).
Accrued at a rate of at least one hour per every 30 hours worked, with unused leave carrying over. Employers can limit annual accrual to 48 hours (Colo. Rev. Stat. § 8-13.3-401).
Colorado's Paid Family and Medical Leave Insurance (PFMLI) program provides employees with up to 12 weeks of paid leave (Colorado PFMLI Act § 8-13.3-501). Colorado's leave is in addition to the federal Family and Medical Leave Act, which provides up to 12 weeks of unpaid leave (FMLA).
- Non-school sessions: Children under 16 may not work more than eight hours per day or 40 hours per week.
- School sessions: Three hours per school day and 18 hours per school week. Hours: Children may not work between 9:30 p.m. and 5 a.m. before school days (Colo. Rev. Stat. § 8-12-105) (DoL) (29 C.F.R. § 570.35).
Colorado has no maximum daily or weekly hours, but minors are restricted from working during school hours if they must attend school (Colo. Rev. Stat. § 8-12-101-117) (DoL) (29 C.F.R. 570.35).
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
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