Colorado Wage Theft Laws: Minimum Wage, Overtime, and Final Paycheck Rules

Colorado’s Colorado Overtime and Minimum Pay Standards (COMPS) Order is one of the most comprehensive state wage regulations in the country. COMPS provides overtime protections for workers who are exempt under the federal FLSA and establishes mandatory rest and meal period rules that significantly expand worker protections beyond what federal law requires.

Minimum Wage in Colorado (2025)

Colorado’s minimum wage is $14.81 per hour as of January 1, 2025. Colorado’s minimum wage is set by Article XVIII, Section 15 of the Colorado Constitution (Amendment 70, as amended by Proposition 118) and adjusts annually based on inflation. Verify the current rate at cdle.colorado.gov.

Denver minimum wage. Denver has its own minimum wage — $18.29 per hour as of January 1, 2025. Denver’s minimum wage increases annually and applies to all employees working within Denver city limits.

Tipped employees. Colorado allows a tip credit. Tipped employees can be paid $11.79 per hour (statewide) or the Denver minimum minus $3.02 if working in Denver, provided tips bring total compensation to the applicable minimum wage. If tips fall short in any workweek, the employer must make up the difference.

No general preemption. Unlike some states, Colorado allows local governments to set minimum wages above the state floor. Denver is the most prominent example.

Overtime Pay in Colorado

Colorado’s COMPS Order goes significantly beyond the FLSA in overtime coverage:

State overtime rule. COMPS requires 1.5 times the regular rate for hours over 40 in a workweek and for hours over 12 in a single workday, and for the first 12 hours on a worker’s 7th consecutive day in a workweek. This daily overtime standard is one of the key differences between Colorado and purely federal overtime rules.

COMPS overtime salary threshold. Colorado’s COMPS Order sets an overtime exemption salary threshold that exceeds the federal level. Workers earning below this threshold are entitled to overtime regardless of their job duties. Check CDLE’s current COMPS Order for the applicable salary threshold — it increases annually.

Broader exemption criteria. COMPS applies to most Colorado employers, with narrow exemptions for very small employers and specific industries. Workers who would be exempt under the federal FLSA may still be entitled to overtime under COMPS if they do not meet the state’s stricter criteria.

Rest and meal periods. COMPS mandates rest periods of 10 minutes per 4 hours worked (which must be paid) and 30-minute uninterrupted meal periods for shifts of 5 hours or more. Employers who fail to provide these periods owe the employee 1 hour of additional pay per missed period.

Colorado Wage Claim Act (CWCA)

The CWCA governs how and when wages must be paid in Colorado:

Pay frequency. Colorado employers must pay wages at least monthly, with most employers required to pay twice monthly.

Final paychecks. Colorado has strict final paycheck deadlines that vary by circumstances:

“Immediately” under Colorado law means within 6 hours of the start of the next business day if the payroll unit is not operational at the time of termination, or within 24 hours if the employer’s payroll unit is located off-site.

Vacation payout. Colorado requires employers to pay out all accrued, unused vacation time upon termination — this is not optional and cannot be waived by policy. A “use it or lose it” vacation policy is illegal in Colorado. Accrued vacation is treated as earned wages.

Penalties. Under the CWCA, employers who willfully fail to pay wages owe the unpaid wages plus 125% of the unpaid wages as a penalty (effectively 2.25x the unpaid amount), plus attorney fees. For non-willful violations, the penalty is 50% of the unpaid wages.

Colorado Division of Labor Standards and Statistics

Colorado’s Division of Labor investigates COMPS and CWCA complaints:

• File online at cdle.colorado.gov/dlss
• No attorney required for administrative complaints
• The Division investigates, contacts employers, and orders payment
• Can assess civil penalties for willful violations

Filing deadline. Wage claims under the CWCA must be filed within 2 years of the date wages were due (3 years for willful violations).

Real Situations: Common Colorado Wage Disputes

Ski industry seasonal worker violations. Colorado’s ski resorts employ thousands of seasonal workers in lodging, food service, and mountain operations. Common violations include: tip credit misapplication for resort servers, failure to pay for mandatory pre-shift meetings and equipment check-in time, and improper classification of ski instructors and patrollers as exempt employees.

Construction overtime in Denver metro. Denver’s construction boom has produced significant overtime violations. Subcontractors frequently misclassify day laborers and framing crews as contractors, and many construction employers fail to pay daily overtime under COMPS for days exceeding 12 hours — which are common in construction.

Illegal “use it or lose it” vacation policies. Colorado’s mandatory vacation payout rule is widely misunderstood by employers. Workers who separate from Denver tech companies, healthcare organizations, and retailers are routinely told their accumulated PTO is forfeited — in violation of Colorado law. The entire balance of accrued, unused vacation must be paid in the final paycheck.

Common Mistakes Colorado Workers Make

Not claiming daily overtime. Workers who work 13-hour days but don’t exceed 40 hours in the week often assume they have no overtime claim. Colorado’s daily overtime standard requires payment for hours 13 and beyond in a single day, even if the worker didn’t hit 40 weekly hours. Many workers in Colorado’s construction, oil and gas, and hospitality sectors are owed significant daily overtime.

Accepting vacation forfeiture. Colorado workers whose employers have “use it or lose it” PTO policies — even if clearly stated in the employee handbook — have a legal right to receive that accrued time in their final paycheck. The policy is void under the CWCA; the employer drafted an illegal policy and cannot enforce it.

Not knowing about the COMPS salary threshold. Salaried workers who earn below the COMPS threshold are entitled to overtime in Colorado regardless of job title. Employees called “assistant managers” or “supervisors” who earn below the COMPS threshold are owed overtime for any workday exceeding 12 hours or any workweek exceeding 40 hours.

How to File a Wage Claim in Colorado

Option 1 — Colorado Division of Labor Standards and Statistics. File at cdle.colorado.gov/dlss. Free, no attorney required. Best for COMPS, CWCA, minimum wage, vacation payout, and final paycheck claims.

Option 2 — Department of Labor (FLSA). File with the federal Wage and Hour Division for claims that also implicate federal law.

Option 3 — Civil lawsuit. Sue in Colorado District Court for CWCA violations. Recover unpaid wages plus 125% penalty and attorney fees for willful violations. Colorado small claims court handles claims up to $7,500 without a lawyer.

Statute of Limitations

Related Guides

• Employment Rights Guide — federal wage and overtime rules that apply in Colorado alongside state law
• Colorado Small Claims Court — sue for unpaid wages up to $7,500 without a lawyer
• Colorado Eviction Notice Requirements — tenant protections for Colorado renters
• Colorado Security Deposit Laws — your rights as a Colorado renter
• Colorado Tenant Rights Guide — complete tenant rights guide for Colorado renters

This article is for informational purposes only and does not constitute legal advice. Colorado wage laws — particularly the COMPS Order salary threshold and Denver minimum wage — change annually. Always verify current rules at cdle.colorado.gov or consult a licensed Colorado employment attorney. Last reviewed: March 2026.