Blog · Payroll Management
Colorado Minimum Wage 2026: Rates & Rules
Colorado's 2026 statewide minimum wage is $15.16 per hour, with Denver setting a higher local minimum, according to the U.S. Department of Labor.
Colorado employers need to track both a state minimum wage and a separate, higher Denver city minimum, plus a daily overtime rule that differs from most other states. That combination makes location tracking essential to payroll accuracy.
Colorado Minimum Wage Rate Table
| Jurisdiction | 2026 Minimum Wage |
|---|---|
| Colorado statewide minimum wage | $15.16 |
| Denver local minimum wage | Set higher than the state rate |
| Federal minimum wage | $7.25 |
Overtime Rules in Colorado
Colorado requires overtime pay for hours worked over 12 in a single day or over 40 in a workweek, whichever produces more overtime pay for the employee. This daily trigger is stricter than the federal FLSA standard and must be calculated separately from weekly totals.
Paid Sick Leave and Family Leave
Colorado requires paid sick leave statewide and operates a state paid family and medical leave (PFML) program. Both apply regardless of whether an employee works in Denver or elsewhere in the state.
Tipped Wages and Local Ordinances
Colorado allows a limited tip credit against the minimum wage. Because Denver sets its own local minimum wage above the state rate, employers need to confirm current Denver requirements and any other local ordinances with the state labor office contacts before finalizing pay rates.
What This Means for Payroll Compliance
Colorado's Denver-versus-statewide wage split and daily overtime rule mean payroll teams need accurate work-location data for every employee, every pay period. Multi-state employers face even more complexity applying Colorado's rules alongside different rates and overtime triggers elsewhere. A single misapplied rate creates back-pay and penalty exposure.
BEG's managed payroll service tracks Denver's local minimum wage separately from the Colorado statewide rate and applies the correct daily and weekly overtime calculation automatically, so nothing is left to manual tracking.
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BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
What is the minimum wage in Colorado in 2026?
Colorado’s statewide minimum wage is $15.16 per hour in 2026, per the U.S. Department of Labor. Denver sets a higher local minimum wage.
What overtime rules apply in Colorado?
Colorado requires overtime pay for hours worked over 12 in a day or over 40 in a week, whichever results in more overtime pay for the employee.
Is Denver’s minimum wage different from the rest of Colorado?
Yes. Denver sets its own minimum wage above the statewide $15.16 rate. Employers with Denver-based employees must apply the higher local rate.
Does Colorado require paid sick leave and paid family leave?
Yes. Colorado requires paid sick leave statewide and operates a state paid family and medical leave (PFML) program.
How should employers with workers in Denver and elsewhere in Colorado handle pay?
Employers must track work location carefully and apply the Denver local minimum wage to employees working within city limits, and the statewide rate elsewhere.
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
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