A Colorado employment contract outlines the terms and conditions of employment between an employer and an employee. The agreement ensures both parties are aware of their obligations, such as job responsibilities, compensation, and paydays. An employment contract can protect an employee from wrongful termination while safeguarding the employer’s confidential information from being wrongfully disclosed.
For a contract to be valid in Colorado, it must consist of an offer and acceptance and be supported by consideration [1] .
- Laws: Colorado Revised Statutes Title 8.
- Definition of Employee: CO Rev Stat § 8-1-101(6): “Every person in the service of an employer, under any contract of hire, express or implied, not including an elective official of the state, or of any county, city, town, irrigation, drainage, or school district thereof, and not including any officers or enlisted men of the National Guard of the state of Colorado.”
By Type
Independent Contractor Agreement
Establishes the terms of a contractor’s work.
Subcontractor Agreement
Outlines the terms of an agreement between a general contractor and a subcontractor.
Employee Non-Compete Agreement
Protects business trade secrets an employee could disclose to competitors.
Employee Non-Disclosure Agreement
Safeguards the integrity of non-public data.
Hiring in Colorado
From the minimum wage laws to payday requirements, you need to be aware of the rules and regulations in Colorado before creating an employment contract.
At-Will Employment
In Colorado, at-will employment is allowed. There are also exceptions to the at-will employment rules.
Exceptions
- Public Policy: Yes
- Implied-Contract: Yes
- Good-Faith Exception: No
Minimum Wage ($/hr)
Basic Minimum Rate (per hour): $13.65 [2] .
Premium Pay After Designated Hours: Daily – 12, Weekly – 40.
Tipped Employee Minimum Wage: $10.63.
Child Labor
Employment certificates are required in Colorado for minors under 16 during school hours. Minors must acquire the certificate through their school and present it to their employer to verify their ability to work before being hired.
Although age certification is not required in Colorado, an age certificate is required by law to be provided on request for minors under 18. However, they will not be issued to minors under 16 during school hours. Minors fourteen or fifteen years of age will need a school release permit if they wish to work on school days during school hours [3] .
Payday
In Colorado, employers are required to pay employees all wages or compensation due within no period greater than one calendar month. Unless, by mutual agreement, the employer and employee determine alternative periods of wage and salary payments.
Meal and Rest Breaks
Minimum paid rest periods are required in Colorado: a paid 10-minute rest period for every four hours of work or major fractions thereof. Where practicable, the rest period should fall in the middle of the work period.
Meal periods are also required in Colorado. Employees must have a half-hour meal period if the work shift exceeds five consecutive hours. On-duty meal periods are counted as time worked and permitted when the nature of work prevents relief from all duties.
Recordkeeping Requirements
Employers in Colorado must keep employee records on pay rates and job descriptions for two years after the end of their employment [4] , and for:
- Discrimination
- Safety & health/workers’ compensation
- Child labor
- Employee access to records
- Unemployment insurance (5 years)
Sample
Start creating your Colorado employment contract by using a template to ensure you include all the essential information. Download below in PDF or Word format.
