As we enter 2022, human resources leaders should be aware of several significant changes in Colorado employment laws. Below are a few changes that you should prepare for, or implement, now.

Colorado Healthy Families Workplace Act (HFWA)

In 2021, Colorado joined a handful of other states in mandating that employers provide paid sick leave. The Colorado Healthy Families Workplaces Act requires businesses to provide paid sick leave to their Colorado employees.  Employees accrue 1 hour of paid sick leave for every 30 hours worked. Unused amounts are carried over into the following calendar year, but need not be paid out upon termination.

In addition, the HFWA continues to require employers to provide paid COVID leave to employees. Employers must provide employees with up to 80 hours paid leave for COVID-related needs usable for a range of COVID-related issues, not just illness. 

Colorado Overtime and Minimum Wage for 2022

The Colorado Department of Labor and Employment issued Comp Order #38 effective Jan. 1, 2022.

• Minimum Wage Update: The minimum wage in Colorado increased to $12.56/hour or $9.54 /hour for employees receiving tips. 
• Salary Threshold For Non-exempt Classification: Employees earning less than $45,000/year are considered non-exempt and must be paid overtime. 
• Use-It-Or-Lose-It Vacation Policies Declared Illegal: Colorado Supreme Court ruling in 2021 held that “use it or lose it” vacation and PTO policies are illegal under Colorado law.  Simply put, employees do not forfeit earned vacation or PTO that remains unused at the end of the year.

Posting a Job? Salary Ranges Required with Increased Enforcement

Colorado’s Equal Pay for Equal Work Act requires companies to post pay ranges and benefits in all job advertisements. This also applies to promotions within a company. The objective of the law is to eliminate the gender gap in wages by creating pay transparency.  The law went into effect in 2021, and the Colorado Department of Labor has begun compliance audits. 

Do You Need a Compliance Review?

With so many changes afoot in employment laws, it can be difficult to keep pace with the shifting landscape. The team at Full Velocity is here and ready to help clients with questions, and ensure their practices are in line with applicable state and federal rules.