Colorado Employment Law Has Changed Significantly
In recent years, Colorado has enacted significant new employer obligations, including the Equal Pay for Equal Work Act, substantial restrictions on non-compete agreements under House Bill 22-1317, and expanded requirements under the COMPS Order governing wages and hours. Employers operating under policies written for other states or under older templates are frequently out of compliance without knowing it. We review and update employer policies to reflect what Colorado law currently requires.
Getting Ahead of Problems
Most employment disputes are preventable with the right documentation in place before a termination, a personnel change, or a dispute arises. We encourage employers to consult with us before significant HR decisions, not after receiving a demand letter. When litigation does arise, we represent employers in Colorado administrative proceedings before the Department of Labor and Employment and in district court.
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Our team is ready to answer your questions and help you understand your options.
Frequently Asked Questions
Are non-compete agreements enforceable in Colorado?
Colorado significantly restricted non-compete agreements under House Bill 22-1317, effective August 2022. Non-competes are now enforceable only against highly compensated employees, subject to annually adjusted thresholds, and only when they are reasonably limited in scope and geography and protect a legitimate business interest. Non-solicitation agreements are subject to a different, lower compensation threshold. Agreements drafted before 2022 may or may not comply with current law and should be reviewed. The law also allows non-compete agreements involving owners when business ownership is being purchased, and the wording of the non-compete agreement can be important to taxable consequences when selling business interests.
What is the Colorado COMPS Order?
The Colorado Overtime and Minimum Pay Standards Order governs minimum wage, overtime requirements, rest and meal break obligations, and related wage requirements for most private sector Colorado employers. It is updated periodically. Employers who have not reviewed their pay practices against the current COMPS Order, particularly around overtime exemptions and break requirements, may be out of compliance.
What should I do before terminating an employee in Colorado?
Before a termination, review the employee's personnel file, the stated reason you will give for termination, any applicable policies in your handbook, and whether the employee has recently filed a complaint or is in a protected class. You should also coordinate ahead of time with your IT specialists to ensure that data access, emails, software, and passwords will be protected. You should ensure that a final paycheck is prepared pursuant to statute. Colorado is an at-will employment state, but wrongful termination claims based on discrimination, retaliation, or public policy violations are common. Consulting an attorney before a difficult termination is generally very worthwhile.
What happens if a former employee files a complaint with the Colorado Department of Labor?
Colorado Department of Labor proceedings, including wage complaints and discrimination charges filed with the Civil Rights Division, have specific response deadlines and require a written response addressing the allegations. Ignoring or mishandling a department complaint can result in a default finding against your business. We respond to and defend employers in DOLA proceedings and CCRD investigations throughout southern Colorado.
