If you’re running a business in Colorado or just trying to earn a paycheck here, you probably feel like the ground is constantly shifting. Honestly, it is. Colorado has basically become the nation's laboratory for "worker-first" policies, and 2026 is shaping up to be the year where all those high-minded legislative ideas finally hit the reality of your HR portal.
It’s not just about a few extra cents on the minimum wage. We’re talking about a massive expansion of paid leave for families in the NICU, a new set of "WARNING" rules that sounds like something out of a sci-fi flick but is actually about retaliation, and an AI law that was supposed to start months ago but got kicked down the road because, frankly, nobody was quite ready for it.
Keeping up with colorado employment law news isn't just for lawyers anymore. It's for anyone who doesn't want to get hit with a $13,000 fine for a wage claim that used to cost half that.
The Big Minimum Wage Jump and Why Your "Exempt" Staff Might Not Be Exempt
Starting January 1, 2026, the statewide minimum wage in Colorado is officially $15.16 per hour. If you're in Denver, that number is much higher at $19.29.
But here’s the kicker most people miss: the "Salary Threshold."
If you have a manager or a "professional" employee you aren't paying overtime, you can’t just give them a title and call it a day. To keep them exempt from overtime under the new COMPS Order #40, you have to pay them at least $1,111.23 per week. That’s roughly $57,784 a year.
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If you’re paying a store manager $55,000 right now, they are technically non-exempt starting New Year's Day. If they work 45 hours, you owe them overtime. No exceptions.
FAMLI is Changing (Again)
You’ve been seeing those deductions on your paychecks for the Family and Medical Leave Insurance (FAMLI) program for a while now. Well, 2026 brings two big updates that are actually kinda good news for both sides.
First, the premium rate is actually dropping. It’s going from 0.9% down to 0.88%. It’s a tiny sliver, but hey, in this economy, we’ll take it.
The second change is much more impactful. Under SB 25-144, if a parent has a newborn in the Neonatal Intensive Care Unit (NICU), they can now get an additional 12 weeks of paid leave.
How the Math Works for NICU Leave
- Standard Bonding Leave: 12 weeks.
- NICU Extension: Up to 12 weeks (for the duration of the NICU stay).
- Pregnancy Complications: 4 weeks (already existed).
- Total Potential Leave: 28 weeks of paid time off.
That is a massive amount of time for a small business to cover. If you're a manager, you've gotta start thinking about "contingency hiring" or cross-training now. You can't just assume a 3-month absence anymore; it could be half a year.
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The "WARNING" Rules and the Retaliation Trap
This is the one nobody is talking about yet. The Colorado Department of Labor and Employment (CDLE) has introduced the WARNING Rules (Wage, Authorization, Retaliation, Non-Interference, and Notice-Giving).
Basically, the state is getting way more aggressive about what counts as "retaliation."
It used to be that retaliation meant firing someone because they complained about pay. Now, the definition is broad. If an employer does anything that might "deter a reasonable person" from exercising their rights—like changing a schedule, giving a cold shoulder, or even "access interference" for agricultural workers—it can be flagged as a violation.
The AI Law Delay: A Short Reprieve
Everyone was panicking about SB 24-205, the law that regulates "high-risk" AI in hiring. If you used software to screen resumes, you were supposed to be doing "bias audits" by now.
Governor Polis and the legislature realized the tech wasn't quite there, and the rules were a bit of a mess. So, they pushed the effective date to June 30, 2026.
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You have a few more months to breathe, but don't delete those "bias audit" emails just yet. The state is still very intent on making sure an algorithm isn't accidentally filtering out people based on age or race. If you use a third-party hiring tool, you need to ask them for their "Impact Assessment" documentation before that June deadline hits.
Non-Competes: The $130,014 Line in the Sand
Non-compete agreements are mostly dead in Colorado, unless you’re dealing with "Highly Compensated Employees."
For 2026, that magic number is $130,014.
If your employee makes $129,000, that non-compete you had them sign is basically toilet paper. It’s unenforceable. Even for non-solicitation agreements (where you tell them they can't poach clients), the worker has to earn at least 60% of that threshold.
And don't forget the Kelly Loving Act (HB 25-1312). It officially makes "deadnaming" or "misgendering" a form of discrimination under the Colorado Anti-Discrimination Act. It’s not just a "company culture" thing anymore; it's a legal liability.
Actionable Steps for the Next 30 Days
Don't just read this and go back to your coffee. There are three things you should do right now:
- Update Your Posters: Throw away the 2025 COMPS Order #39. You need the 2026 COMPS Order #40 and the updated FAMLI posters visible in the breakroom (and emailed to your remote staff).
- Audit Your "Mid-Level" Salaries: Check everyone earning between $55,000 and $58,000. Either give them a raise to meet the $57,784 threshold or start tracking their overtime hours religiously.
- Review Your NDA Templates: Ensure they don't have "hush money" clauses that prevent people from talking about discrimination. The POWR Act (Protecting Opportunities and Workers' Rights) makes those clauses void, and including them can lead to a $5,000 penalty per violation.
Colorado isn't getting easier to navigate for employers, but it is getting more predictable if you know where the tripwires are. Keep an eye on the CDLE website, because they love to drop "interpretive guidance" memos on Friday afternoons that change everything by Monday.