Colorado’s employment law landscape is constantly evolving. It is critical – but not always easy – for employers to remain up to date and compliant with these new requirements. We’ve compiled a quick and high-level review of the changes that have arrived in 2026 in Colorado.
Wage and Hour updates
House Bill 25-1001 amended Colorado’s Wage Act. Key changes include:
• Expanding the definition of ‘employer’ to include individuals who own or control at least 25% of a business, unless authority is fully delegated. Practical consequences of this change mean that even “employers” that don’t have operational control can be held personally liable for wage complaint violations.
• Significantly increasing automatic fines for worker misclassification, from $5,000 up to $50,000 (for a second violation), making proper classification of employees and independent contractors more critical than ever.
• CDLE jurisdiction for wage complaints increased from $7,500 to $13,000 per employee starting July 1, 2026, and requiring the director to publish the names of employers found to be in violation.
• Payroll deductions cannot reduce wages below the state minimum.
Family and Medical Leave Expansion (FAMLI)
Senate Bill 25-144 expands the FAMLI program. Specifically, employees with newborns requiring NICU care are entitled to an additional 12 weeks of paid leave, for a potential total of up to 24 weeks.
Restrictive Covenants
In addition to already restrictions on noncompete and non-solicitation provisions enacted in 2022, Senate Bill 25-083 now exempts physicians, dentists, and advanced practice nurses from noncompete and non-solicit agreements. These changes are not retroactive and apply only to agreements entered or renewed after August 6, 2025.
Antidiscrimination and Employee Protections
House Bill 25-1312 now codifies protections for transgender individuals, allowing chosen names to reflect gender expression.
It is crucial for employers to ensure their policies and implementation reflect the current laws and practices. If you have any questions, or want to review and/or update your policies, please reach out to [email protected] or [email protected] for questions and support.
