Colorado Workforce Center offers business services to help employers stay ahead of the competition. Some services include:

• Recruiting assistance
• Hiring events and pre-screened interviewing
• Labor market services
• Customized training programs
• Hiring incentives and tax credit programs

Find your local workforce center at CDLE.Colorado.gov/jobs-training/workforce-centers or register and post jobs at Connecting Colorado.

Employers are required to keep and report employees’ names, social security numbers and gross wages for each quarter. Employers are required to keep these records for not less than five years for purposes of reporting to unemployment insurance.

Federal law requires employers to report new hire information to the State Directory or New Hires of the state in which a newly hired employee works.

This reporting must take place within 20 calendar days after the date of hire or by the first regularly scheduled payroll following the date of hire, if such payroll is after the expiration of the 20-day period.

If reporting electronically, the employer must transmit twice per month, no fewer than 12 and no more than 16 days apart.

Report New Hires

Employee/worker misclassification occurs when an employer mistakenly classifies a worker as an independent contractor rather than an employee. Colorado law assumes that service performed by an individual for another is deemed to be employment, unless:

1. It is shown that the individual performing the service is free from control and direction in that performance

-and-

2. The individual is customarily engaged in an independent trade, occupation, profession, or business related to that service.

Generally, it is the employer’s responsibility to establish that both these conditions exist. Additionally, we evaluate the overall “totality of circumstances” to make a determination. The “totality of the circumstances” test is based upon an assessment of 9 different factors constrained within Colorado Law. This is not an exhaustive list and other relevant factors may be considered.

There are 9 factors that demonstrate correct classification

An employer must not:

1. Require the individual to work exclusively for the person for whom services are performed; except that the individual may choose to work exclusively for the said person for a finite period of time specified in the document;
2. Establish a quality standard for the individual; except that such person can provide plans and specifications regarding the work but cannot oversee the actual work or instruct the individual as to how the work will be performed;
3. Pay a salary or hourly rate but rather a fixed or contract rate;
4. Terminate the work during the contact period unless the individual violates the terms of the contract or fails to produce a result that meets the specifications of the contract;
5. Provide more than minimal training for the individual;
6. Provide tools or benefits to the individual; except that a materials and equipment may be supplied;
7. Dictate the time of performance; except that a completion schedule and a range of mutually agreeable work hours may be established;
8. Pay the individual personally but rather make checks payable to the trade or business name of the individual; and
9. Combine his business operation in any way with the individual’s business, but instead maintains such operations as separate and distinct.

The independent contractor is obligated to pay federal and state income tax on any moneys paid pursuant to the contract-labor relationship.

Request an advisory opinion, or report misclassification.

Many employers in Colorado are required to pay employees a minimum wage.

If an employee is covered by federal and Colorado state minimum wage laws, then the employer must pay the higher minimum wage. Federal minimum wage is currently $7.25 per hour, which is lower than the Colorado state minimum wage of $10.20. Therefore, based upon current information, covered employers in Colorado will have to pay their employees the higher value of $10.20 per hour under Colorado law. For more information, go to ColoradoLaborLaw.gov.

Employees who are covered by Colorado Minimum Wage Order Number 34 may, in certain circumstances, qualify for overtime pay. The following information only applies to non-expempt employees covered by the Wage Order.

Overtime Hours

Employees shall be paid time and one-half of the regular rate of pay for any work in excess of: (1) forty hours per workweek; (2) twelve hours per workday, or (3) twelve consecutive hours without regard to the starting and ending time of the workday (excluding duty free meal periods), whichever calculation results in the greater payment of wages.

Workweek Definition and Overtime

A workweek is defined as any consecutive seven-day period starting with the same calendar day and hour each week. A workweek is a fixed and recurring period of 168 hours, seven consecutive twenty-four hour periods, and is typically established by the employer. Hours worked in two or more workweeks shall not be averaged for computation or overtime.

Regular Rate of Pay

The regular rate of pay for an employee is used to calculate overtime pay. The regular rate of pay is expressed as a rate per hour, and it is determined by dividing the total remuneration provided to an employee in any workweek by the total numbers of hours actually worked in that workweek.

The regular rate of pay includes all compensation paid to employees including the set hourly rate, shift differential, non-discretionary bonuses, production bonuses, and commissions.

The following are excludable from the regular rate of pay: business expenses, bona fide gifts, discretionary bonuses, employer investment contributions, vacation pay, holiday pay, sick leave, or jury duty.

For more information, go to ColoradoLaborLaw.gov.