Colorado Employment Contract Template

A Colorado employment contract is a written agreement between employer and employee that sets out the role, pay, benefits, workplace policies (breaks, leave, etc.), and how the employment can end. Employment is generally at-will unless the contract specifies otherwise.

• Minimum wage: As of Jan 1, 2025, Colorado’s minimum wage for non-tipped employees is $14.81/hour; tipped employees have a lower rate. In some cities, such as Denver, the minimum wage is higher.
• Overtime: Colorado’s COMPS Order requires non-exempt employees to be paid 1.5× regular rate for work over 40 hours per week or over 12 hours in a day, whichever yields higher pay.
• Meal/rest breaks: For shifts over five hours, employees are entitled to an uninterrupted, duty-free 30-minute meal break. Paid 10-minute rest breaks must be provided for each four hours worked (or major fraction thereof).
• Paid sick leave / leave laws: All Colorado employers must provide paid sick leave. Employees earn 1 hour per 30 hours worked, up to 48 hours per year, for health, family care, domestic abuse, bereavement, school closures, and other covered needs. Additional public health emergency (PHE) leave of up to 80 hours applies when declared.
• Paydays and final pay: Employers must pay employees at least once per month or every 30 days (Colorado Wage Act § 8-4-101). Wages are due within 10 days of the close of the pay period. Final wages are due immediately upon discharge, or by the next regular payday if the employee resigns.
• Child labor: Colorado limits hours and duties for minors; applies the stricter of state or federal rules. Work permits generally aren’t required, but school-hours work for 14–15 has special approval rules; hazardous occupations are barred absent qualifying programs.
• Non-compete agreements: Non-competes are enforceable under certain conditions in Colorado; contracts should carefully define scope, duration, and consideration as per CO Rev Stat § 8-2-113.
• E-signatures: Electronic signatures are generally valid under Colorado law when properly documented; check that all parties agree.
• Recordkeeping: The Colorado Employment Security Act (CESA) 8-72-107 mandates that all records must be accessible for inspection. This allows for auditing and verification at reasonable times as often as necessary. You are required to maintain work records for a minimum of five years.

Writing a Colorado employment contract is straightforward: set clear terms that comply with state laws.

1. Start with basics: List employer/employee names, job title, start date, work location, and at-will status; put the agreement in writing and have both parties sign.
2. Classify the role: Identify exempt vs. non-exempt under COMPS/FLSA to control overtime, breaks, and tracking requirements.
3. Set pay and paydays: State wage or salary, pay frequency, and overtime rules; confirm pay meets or exceeds the statewide minimum (or higher local rate) and that wages are paid at least monthly and within 10 days after the close of the pay period.
4. Breaks: Specify a 30-minute uninterrupted meal period for shifts over 5 hours and paid 10-minute rest breaks for each 4 hours or major fraction thereof.
5. Sick leave (HFWA): Define accrual at 1 hour per 30 hours worked up to 48 hours/year, covered uses (health, family care, bereavement, domestic abuse, closures), and how you’ll comply with up to 80 hours of PHE leave if declared.
6. Child labor (if hiring minors): State that you will follow the stricter of state or federal rules on hours and duties, bar hazardous work unless in a qualifying program, and obtain required approvals for 14–15 school-hours work.
7. Restrictive covenants: If used, tailor non-compete/non-solicit to state law (generally limited to protecting trade secrets or highly compensated workers) and provide required notice and consideration.
8. Termination and final pay: Reconfirm at-will employment unless limited; state that final wages are due immediately on discharge or by the next regular payday if the employee resigns.
9. Pay statements and records: Provide itemized wage statements each payday; retain payroll/time records at least 3 years (Wage Act) and unemployment records 5 years (CESA § 8-72-107); document HFWA leave balances/usage.
10. Governing law and e-signatures: Specify that Colorado law governs and that electronic signatures and electronic delivery of notices are accepted under UETA.