The CRA provides free, limited legal advice through our Legal Resource Center. This compilation of resources includes a network of member attorneys, labor law and compliance posters, educational programs, and other tools and information to help keep your business in compliance. If you need advice outside of what is offered in the Legal Resource Center online, please call (303) 830-2972 or email FirstCall@corestaurant.org to request further help.

The links below provide easy access to handbooks and the rules and regulations every Colorado business needs to follow.

For more information about acquiring a discounted template for an Employee Handbook, email us at firstcall@corestaurant.org.

These resources and documents are intended to help Colorado restaurant operators comply with the essential requirements of daily operations. If you’re not seeing what you need here, please reach out at info@corestaurant.org.

PREGNANT WORKERS FAIRNESS ACT C.R.S. § 24-34-402.3

The Pregnant Workers Fairness Act makes it a discriminatory or unfair employment practice if an employer fails to provide reasonable accommodations to an applicant or employee who is pregnant, physically recovering from childbirth, or a related condition.

Requirements:
Under the Act, if an applicant or employee who is pregnant or has a condition related to pregnancy or childbirth requests an accommodation, an employer must engage in the interactive process with the applicant or employee and provide a reasonable accommodation to perform the essential functions of the applicant or employee’s job unless the accommodation would impose an undue hardship on the employer’s business.

The Act identifies reasonable accommodations as including, but not limited to:
• provision of more frequent or longer break periods;
• more frequent restroom, food, and water breaks;
• acquisition or modification of equipment or seating;
• limitations on lifting;
• temporary transfer to a less strenuous or hazardous position if available, with return to the current position after pregnancy;
• job restructuring;
• light duty, if available;
• assistance with manual labor; or modified work schedule.

The Act prohibits requiring an applicant or employee to accept an accommodation that the applicant or employee has not requested or an accommodation that is unnecessary for the applicant or the employee to perform the essential functions of the job.

Scope of accommodations required:
An accommodation may not be deemed reasonable if the employer has to hire new employees that the employer would not have otherwise hired, discharge an employee, transfer another employee with more seniority, promote another employee who is not qualified to perform the new job, create a new position for the employee, or provide the employee paid leave beyond what is provided to similarly situated employees.

Under the Act, a reasonable accommodation must not pose an “undue hardship” on the employer. Undue hardship refers to an action requiring significant difficulty or expense to the employer. The following factors are considered in determining whether there is undue hardship to the employer:

• the nature and cost of accommodation;
• the overall financial resources of the employer;
• the overall size of the employer’s business;
• the accommodation’s effect on expenses and resources or its effect upon the operations of the employer

If the employer has provided a similar accommodation to other classes of employees, the Act provides that there is a rebuttable presumption that the accommodation does not impose an undue hardship.

Adverse action prohibited:
The Act prohibits an employer from taking adverse action against an employee who requests or uses a reasonable accommodation and from denying employment opportunities to an applicant or employee based on the need to make a reasonable accommodation.

Notice:
Written notice must be posted in a conspicuous area of the workplace (see links below). Employers must also provide written notice to new employees at the start of employment and to current employees within 120 days of the Act’s August 10, 2016 effective date (see letter link below).

Uniforms

If you require employees to wear a uniform (such as a logoed shirt), you must provide one free of charge. (This is a change from prior law, when you could take a 50-percent deposit on the uniform.)

This law applies only to dress or equipment that an employee would not reasonably own prior to their employment. In other words, if part of your uniform is something the employee could reasonably already own (e.g. black pants), you do not need to provide it free of charge.

If the uniform furnished by the employer requires special care, such as dry cleaning, ironing, etc., the employer is required to pay for cleaning.

The cost of ordinary wear and tear of a uniform or special apparel shall not be deducted from an employee’s wages.

Current information regarding minimum wage, overtime, meal and rest breaks, wage deductions, and more:

Wage & Hour Rules:

• Colorado Overtime Minimum Pay Standards (COMPS Order) #40 (7 CCR 1103-1) & SBP for COMPS Order #40 (effective 2/1/26)
• 2026 Publication and Yearly Calculation of Adjusted Labor Compensation (PAY CALC) Order (7 CCR 1103-14) & SBP for 2026 PAY CALC Order (effective 2/1/26)
• 2026 Wage Protection Rules (7 CCR 1103-7) & SBP for 2026 Wage Protection Rules (effective 2/1/26)

Payroll Audit Independent Determination (PAID) program

The Wage and Hour Division (WHD) offers the Payroll Audit Independent Determination (PAID) program to help employers resolve potential minimum wage and overtime violations under the Fair Labor Standards Act (FLSA), as well as certain potential violations under the Family and Medical Leave Act (FMLA). This program allows employers to correct mistakes efficiently and ensure employees receive back wages or other remedies promptly, all while avoiding litigation.

LEARN MORE

Tips and service charges are a constant source of questions for Colorado restaurant operators, so we compiled these resources and FAQs to help clarify.

If you utilize a tip pool, feel free to download the poster below to display for your guests. Please also include the following language on customer receipts: “All gratuities are shared among our employees.”

NOTE: New legislation was passed in 2025 putting requirements on mandatory service charges; these new requirements need to go through rulemaking, and will not take effect until January 1, 2026. We will update this page to reflect the new changes when they are announced.

Quick links to the tax and employment information and documents you need:

The Utilities Sales Tax Credit allows you to deduct from your taxable sales a portion of your utility costs (electricity, gas, propane, etc.) for the manufacturing and processing of food. This tax credit was obtained for you by the CRA after extensive negotiations with the Colorado Department of Revenue. All cities, counties, and districts whose sales taxes are collected by the Department of Revenue can be included in this calculation. Be sure to use and claim this benefit!

Healthy Family and Workplaces Act (HFWA, Public Health Emergency Leave, and Accrued Leave)

The Colorado Healthy Families and Workplaces Act (HFWA) requires Colorado employers to provide two types of paid sick leave to their employees: public-health emergency (PHE) leave and accrued leave. The following apply to both PHE and accrued leave:

• Wages must be paid for time on leave, and at the same pay rate the employee earns during time worked.
• Leave can’t be counted against employees as absences that may lead to firing or other negative action.

Accrued Leave

Employers are required to provide one hour of paid leave per 30 hours worked, up to 48 hours per year. Accrued leave is usable for a wide range of health and safety needs, including:

• Any mental or physical illness, injury, or health condition that prevents work
• Diagnosis, care, or treatment of such conditions
• Preventive care (including vaccination)
• To grieve, attend funeral services or a memorial, or deal with financial and legal matters that arise after the death of a family member (Starting August 6, 2023)
• To care for a family member whose school or place of care has been closed due to inclement weather, loss of power, loss of heating, loss of water, or other unexpected occurrence or event that results in a closure — beginning August 6, 2023
• To evacuate the employee’s place of residence due to inclement weather, loss of power, loss of heating, loss of water, or other unexpected occurrence or event that results in the need to evacuate — beginning August 6, 2023
• Needs due to suffering domestic violence, sexual abuse, or criminal harassment; or caring for family with such conditions or needs.

Employers can require documentation for accrued paid sick leave (not for COVID-related public health emergency (PHE) leave), but only for absences of four or more consecutive days — and employees can provide the documentation after the leave ends.

Family and Medical Leave Insurance (FAMLI) Program (updated January 2026)

Colorado voters approved Proposition 118 in November 2020, paving the way for the state-run Paid Family and Medical Leave Insurance (FAMLI) program. FAMLI ensures that all Colorado workers have access to paid leave to take care of themselves or their family during life circumstances that pull them away from their jobs, such as growing their family or taking care of a family member with a serious health condition.

FAMLI benefits officially became available on January 1, 2024. Covered Colorado workers may receive up to twelve weeks of leave per year to:

• Bond with a new child, including adopted and fostered children.
• Care for themselves, if they have a serious health condition.
• Care for a family member’s serious health condition.
• Make arrangements for a family member’s military deployment.
• Address the immediate safety needs and impact of domestic violence and/or sexual assault.
• Those who experience pregnancy or childbirth complications may receive an additional four weeks for a total of 16 weeks per year.

Both employers and employees contribute premiums to the program. Premium contributions began in January 2023.

Use the FAMLI Premiums & Benefits calculator to estimate the cost of your premiums and your potential benefit payment.

Colorado SecureSavings Plan

Starting in June 2023, all Colorado employers with five or more employees are required to either enroll in the Colorado SecureSavings plan created by the Colorado Office of the Treasurer or opt out of the program by certifying that your business offers its own compliant retirement-savings plan and is exempt (here’s a list of those exemptions).

Once you register your business with Colorado SecureSavings, which you can do here, your employees will be contacted by the program and given the option to either opt out or participate. It is important to note that if an employee does not respond within 30 days of being notified by the program, they will be automatically enrolled in a Roth IRA at a contribution rate of 5 percent of gross pay. Employees can choose to discontinue their contributions at anytime after enrolling or being automatically enrolled.

Employees can sign up for the program, manage their account, and find more information (such as how to add or withdraw from their account) on the Colorado SecureSavings portal for savers.

Family and Medical Leave Insurance (FAMLI) Program (updated September 2025)

Colorado voters approved the paid Family and Medical Leave Insurance (FAMLI) program in 2020. FAMLI ensures Colorado workers have access to paid leave in order to take care of themselves or their family during life circumstances that pull them away from their jobs, so workers don’t have to choose between earning a paycheck and taking care of their families. When life happens, FAMLI has you covered.

FAMLI benefits officially became available on January 1, 2024. Covered Colorado workers may receive up to twelve weeks of leave per year to:

• Bond with a new child, including adopted and fostered children.
• Care for themselves, if they have a serious health condition.
• Care for a family member’s serious health condition.
• Make arrangements for a family member’s military deployment.
• Address the immediate safety needs and impact of domestic violence and/or sexual assault.

Those who experience pregnancy or childbirth complications may receive an additional four weeks for a total of 16 weeks per year.

Both employers and employees contribute premiums to the program. Premium contributions began in January 2023. Use the FAMLI Premiums & Benefits calculator to estimate the cost of your premiums and your potential benefit payment.

Employers must give the employee leave if it is granted by the state and then the state insurance program will provide the employee with partial wage replacement.

SEE ABOVE SECTION “EMPLOYEE LEAVE/TIME OFF” FOR MORE FAMLI RESOURCES

PREGNANT WORKERS FAIRNESS ACT C.R.S. § 24-34-402.3

The Pregnant Workers Fairness Act makes it a discriminatory or unfair employment practice if an employer fails to provide reasonable accommodations to an applicant or employee who is pregnant, physically recovering from childbirth, or a related condition.

Requirements:
Under the Act, if an applicant or employee who is pregnant or has a condition related to pregnancy or childbirth requests an accommodation, an employer must engage in the interactive process with the applicant or employee and provide a reasonable accommodation to perform the essential functions of the applicant or employee’s job unless the accommodation would impose an undue hardship on the employer’s business.

The Act identifies reasonable accommodations as including, but not limited to:
• provision of more frequent or longer break periods;
• more frequent restroom, food, and water breaks;
• acquisition or modification of equipment or seating;
• limitations on lifting;
• temporary transfer to a less strenuous or hazardous position if available, with return to the current position after pregnancy;
• job restructuring;
• light duty, if available;
• assistance with manual labor; or modified work schedule.

The Act prohibits requiring an applicant or employee to accept an accommodation that the applicant or employee has not requested or an accommodation that is unnecessary for the applicant or the employee to perform the essential functions of the job.

Scope of accommodations required:
An accommodation may not be deemed reasonable if the employer has to hire new employees that the employer would not have otherwise hired, discharge an employee, transfer another employee with more seniority, promote another employee who is not qualified to perform the new job, create a new position for the employee, or provide the employee paid leave beyond what is provided to similarly situated employees.

Under the Act, a reasonable accommodation must not pose an “undue hardship” on the employer. Undue hardship refers to an action requiring significant difficulty or expense to the employer. The following factors are considered in determining whether there is undue hardship to the employer:

• the nature and cost of accommodation;
• the overall financial resources of the employer;
• the overall size of the employer’s business;
• the accommodation’s effect on expenses and resources or its effect upon the operations of the employer

If the employer has provided a similar accommodation to other classes of employees, the Act provides that there is a rebuttable presumption that the accommodation does not impose an undue hardship.

Adverse action prohibited:
The Act prohibits an employer from taking adverse action against an employee who requests or uses a reasonable accommodation and from denying employment opportunities to an applicant or employee based on the need to make a reasonable accommodation.

Notice:
Written notice must be posted in a conspicuous area of the workplace (see links below). Employers must also provide written notice to new employees at the start of employment and to current employees within 120 days of the Act’s August 10, 2016 effective date (see letter link below).

• If you require employees to wear a uniform (such as a logoed shirt), you must provide one free of charge. (This is a change from prior law, when you could take a 50-percent deposit on the uniform.)
• This law applies only to dress or equipment that an employee would not reasonably own prior to their employment. In other words, if part of your uniform is something the employee could reasonably already own (e.g. black pants), you do not need to provide it free of charge.
• If the uniform furnished by the employer requires special care, such as dry cleaning, ironing, etc., the employer is required to pay for cleaning.
• The cost of ordinary wear and tear of a uniform or special apparel shall not be deducted from an employee’s wages.

• 2026 Employer Rates: Unemployment Insurance employer premium rates are available online in MyUI Employer+. Annual Rate Notices have also been mailed. Employers and agents should compute and round each individual rate component to accurately calculate the total premiums owed each quarter. Visit the UI Premium Rates page for more information.

Employee Separation Notification Requirement

In May 2022, Colorado passed a new law requiring employers to provide a notice to all employees upon separation from employment (meaning firing, quitting, layoffs, etc.), stating the reason for the separation and informing them unemployment compensation benefits may be available.

The notice must include the following information:

• The employer’s name, DBA (if applicable), and address
• The employer’s federal employer identification number
• The employee’s name and address
• The employee’s taxpayer identification number or the last four digits of their Social Security number
• The employee’s start date, date of last day worked, year-to-date earnings, and wages for the last week the employee worked
• The reason the employee separated from the employer

The Colorado Department of Labor and Employment released Employer Separation Form 22-234, which serves as the model unemployment notice to comply with the law.

If you have any additional questions feel free to contact info@corestaurant.org.

Beneficial-Ownership Information Registration Requirement

Jan. 2025 Note: The Fifth Circuit Court of Appeals has vacated its own order and, for now, filing of the BOI report is NOT REQUIRED.

Under the Federal Corporate Transparency Act, most businesses — including almost all restaurants — will have to register their company and disclose information about their beneficial owners, effective January 1, 2024.

If your business existed prior to January 1, 2024, you have until January 1, 2025 to register. If your business was formed since January 1, 2024, you must register within 90 days of establishment.

Under the act, each reporting company must report the following:

• Full legal name
• Any trade name or DBA
• Complete current U.S. address
• State or other jurisdiction of formation
• Internal Revenue Service (IRS) Taxpayer Identification Number (TIN) (including an Employer Identification Number (EIN))

Additionally, each beneficial owner must report the following:

• Full legal name
• Date of birth
• Complete current address
• Unique identifying number and issuing jurisdiction from, and image of, one of the following non-expired documents:
  1. U.S. passport
  2. State driver’s license
  3. Identification document issued by a state, local government, or tribe
  4. If an individual does not have any of the previous documents, foreign passport

The report only needs to be filed once, unless the information needs to be updated or corrected based on a change in beneficial ownership.

File online here: https://www.fincen.gov/boi

In Colorado, all businesses with one or more employees must carry workers’ compensation insurance, regardless of the number of employees and whether the employees work part-time, full-time, or are members of the owner’s family.

To learn more about workers’ compensation requirements, please visit the Colorado Department of Labor & Employment (CDLE) Division of Workers’ Compensation here.

For the Colorado Employer Guide to Workers’ Compensation in English, click here.
For the Employer Guide in Spanish, click here.

To find a Colorado Workers’ Compensation carrier, click here.

A Workers’ Compensation Act poster and the Notice to Employer of Injury poster must be displayed on the workplace premises. You can find both of those posters in English and Spanish on the CRA Posters & Signage page.

The National Restaurant Association (NRA) is the largest foodservice trade association in the world by membership, supporting more than 500,000 restaurant businesses. NRA staff and lobbyists represent and advocate for foodservice industry interests with state, local, and national policymakers, taking on financial and regulatory obstacles before they hit members’ bottom line and providing tools and systems that help members of all sizes operate more efficiently.

The NRA, in conjunction with state restaurant associations like the CRA, strives to move our industry forward by finding answers to the tough questions, distilling complex information into practical knowledge, and helping our members navigate the issues that can leave them in the weeds. Below are just a few of the national resources that the NRA provides: