Running a small business in Colorado requires ensuring Colorado compliance with state laws, which involves juggling a lot of responsibilities. One of the most critical is making sure your business adheres to employment laws. Colorado compliance isn’t just about avoiding penalties—it’s about creating a fair, safe, and legal workplace for your employees. This checklist will help you navigate some key areas specific to Colorado, so you can focus on growing your business with peace of mind.
Understand Colorado Wage and Hour Laws
Minimum Wage: As of 2024, Colorado’s minimum wage is $14.50 per hour, with higher rates in some municipalities like Denver. Ensure you’re paying at least the minimum wage applicable in your area to maintain Colorado compliance.
Overtime Pay: Non-exempt employees in Colorado must receive overtime pay at 1.5 times their regular rate for hours worked over 40 in a workweek or over 12 in a workday. Accurately tracking hours is crucial to comply with Colorado overtime laws.
Action Item: Regularly review and update your payroll systems to reflect current wage laws. Consider using payroll software that automatically calculates overtime to prevent errors and ensure Colorado compliance.
Ensure Compliance with Paid Leave Laws
Colorado Healthy Families and Workplaces Act (HFWA): This law mandates that all employers provide paid sick leave, aligning with Colorado compliance standards. Employees accrue one hour of paid leave for every 30 hours worked, up to 48 hours per year.
Action Item: Set up a system to track leave accrual and usage. Inform your employees about their rights to paid leave under HFWA and ensure your employee handbook clearly outlines these policies.
Adhere to Anti-Discrimination and Harassment Laws
Colorado Anti-Discrimination Act (CADA): This law prohibits discrimination and mandates that employers prevent and address workplace harassment to stay compliant in Colorado.
Action Item: Implement a robust anti-discrimination policy and provide regular training for your employees. Have clear procedures in place for reporting and addressing discrimination and harassment complaints.
Post Required Labor Law Notices
Workplace Posting Requirements: Colorado law requires that specific labor law notices be posted in a visible area in the workplace, including information on minimum wage, workers’ compensation, and anti-discrimination laws.
Action Item: Regularly review and update required postings as laws change to ensure ongoing Colorado compliance.
Maintain Proper Employee Classification
Independent Contractors vs. Employees: Misclassifying employees as independent contractors can lead to significant penalties under Colorado law.
Action Item: Review all independent contractor relationships to ensure they meet Colorado’s compliance criteria.
Stay Compliant with Workers’ Compensation Requirements
Workers’ Compensation Insurance: Colorado law requires businesses to carry workers’ compensation insurance, providing benefits to employees who suffer work-related injuries or illnesses.
Action Item: Verify that your insurance is current and that you’re accurately reporting all employees to maintain Colorado compliance.
Review and Update Your Employee Handbook
Employee Handbook: Your handbook should reflect current laws and company policies to stay compliant in Colorado.
Action Item: Update your employee handbook annually or with significant changes in laws. Ensure all employees receive a copy and acknowledge their understanding.
Why The People Biz?
At The People Biz, we specialize in helping small businesses navigate the complexities of HR compliance in Colorado. We offer practical and actionable HR solutions to ensure your business remains compliant while focusing on growth.
When The People Biz is the Right Choice:
- You need help staying on top of ever-changing employment laws.
- You want to ensure your business is compliant without dedicating excessive time and resources.
- You’re looking for clear, actionable advice tailored to Colorado’s legal landscape.
Colorado compliance doesn’t have to be a headache. With the right support, you can protect your business and create a workplace where employees thrive.
