Paid Time Off (PTO) in Colorado
Leave Quota
Colorado leave laws does not mandate vacation days. There is no legal requirement for employers to provide paid or unpaid vacation time. However, if employers opt to offer vacation leave, they must adhere to state laws, established company policies, or employment contracts. Even though providing vacation time isn’t mandatory, any accrued vacation time must be compensated upon an employee’s departure. This is stipulated under Colo. Rev. Stat. § 8-4-101(14)(a)(III).
Company Vacation Policies
Company vacation policies may cover several aspects, such as:
- Whether vacation pay is available
- The amount of vacation pay provided annually or over a specific period
- How vacation pay is accrued—whether it’s granted all at once or gradually over time (weekly, monthly, etc.)
- Whether there’s a cap on the amount of vacation time that can be accrued annually or beyond
In workplaces governed by a collective bargaining agreement, vacation policies—both paid and unpaid—are mandatory subjects of negotiation.
Accrual
While accrual of vacation leave is not required by law in Colorado, many employers choose to implement such a system. Employers can set a reasonable cap on vacation accrual, limiting the number of hours employees can accumulate.
Carryover
Colorado leave laws prohibits “Use-It-or-Lose-It” policies for vacation, sick leave, or any other type of accrued paid leave. Colorado is among a select few states, including California, Nebraska, and Montana, where such policies are not permitted. It is illegal for employers to require employees to forfeit unused vacation time after a certain date, such as the end of the year. As a result, employers must allow employees to carry over unused vacation time into the following year.
This prohibition on “Use-It-or-Lose-It” policies was established by a Colorado Supreme Court ruling in June 2021. Nevertheless, employers may impose a ceiling on the number of vacation days that can be accrued.
Payment of Accrued, Unused Vacation Upon Termination
Employers are required to compensate employees for any accrued vacation time upon the end of employment. Employers cannot legally enforce a policy or agreement that denies employees payment for accrued vacation leave. However, while vacation leave is considered wages under the law, it is explicitly stated that employers are not required to pay out unused sick leave at termination.
Strict guidelines, including the employer’s past practices, industry standards, and mutual understandings between employer and employee, help determine when vacation time is considered “earned” under a specific policy.
Payout
Employers are responsible for paying out earned vacation leave.
Sick Leave in Colorado
Federal Laws: Leave Quota
Federal law entitles Colorado employees to up to 12 weeks of unpaid Family and Medical Leave Act (FMLA) sick leave annually.
The Family and Medical Leave Act (FMLA) allows eligible employees to take up to 12 weeks of unpaid, job-protected leave each year for specific family and medical reasons, including serious health conditions, maternity or paternity leave, or the need to care for a spouse or child. To qualify for FMLA, employees must have been employed by their employer for at least one year, worked a minimum of 1,250 hours over the past year, and be employed at a location where the company has 50 or more employees within 75 miles.
Colorado State Laws: Paid Sick Leave
Under Colorado’s Healthy Families and Workplaces Act (HFWA), which took effect on January 1, 2021, employers are required to provide 1 hour of paid sick leave for every 30 hours worked. Initially, this law applied to employers with more than 16 employees. As of January 1, 2022, it extends to all employers in both the private and public sectors, regardless of the number of employees.
Accrual Rate and Carry Over
Employees accrue 1 hour of paid sick leave for every 30 hours worked, with a cap of 48 hours (6 days). Unused paid sick leave can be carried over to the next year, up to a maximum of 48 hours.
Waiting Period
The HFWA prohibits employers from imposing a waiting period for paid sick leave. Employees begin accruing paid sick leave as soon as their employment starts, and they may use it as soon as it is accrued. Employers can require documentation from employees who take four or more consecutive paid sick days.
Permitted Uses of Paid Sick Leave
Paid sick leave can be used for the following purposes:
- To address a personal illness, injury, or health condition, or to seek medical diagnosis, care, treatment, or preventive care
- To care for a family member with a similar health issue or preventive care needs
- If the employee or a family member has been a victim of domestic violence, sexual assault, or harassment, necessitating time off for related reasons
- When a public health emergency leads to the closure of the employee’s child’s school or place of business, requiring the employee’s absence from work
Payout of Sick Leave
Employers are responsible for paying out sick leave.
Colorado’s New FAMLI Program Started in 2023
In November 2020, Colorado voters passed Proposition 118, paving the way for the Paid Family and Medical Leave Insurance (FAMLI) program. This program provides most Colorado workers with up to 12 weeks of paid time off to care for themselves or their families during significant life events that require them to take a leave of absence from work.
Eligible reasons for taking leave under the FAMLI program include serious health conditions, the birth or adoption of a child, caring for a family member with a serious health condition, managing family member military deployment arrangements, or seeking safe leave due to domestic violence.
Contributions to this program by employers and employees began on January 1, 2023, with benefits becoming available on January 1, 2024. The program is funded by a payroll tax, initially set at 0.9% of an employee’s wages, split evenly between employers and employees. This tax will increase over time. Small employers with fewer than 10 employees are exempt from the employer premium.
Employees who have worked for their employer for at least 180 days and earn a minimum of $2,500 annually are generally eligible for paid family leave.
Employers should plan ahead for the implementation of this new payroll tax, inform their employees about the new policy, and establish procedures for managing the initiative.
Payout
Paid family and medical leave under the FAMLI program is funded by payroll taxes paid equally by employers and employees.
Maternity, Paternity, and FMLA in Colorado
Federal Law
The Family and Medical Leave Act (FMLA) mandates that Colorado employers with 50 or more employees provide up to 12 weeks of unpaid maternity or paternity leave to expectant and new parents. As a federal law, FMLA is the primary regulation in the U.S. for establishing these leave policies. The provisions are generally consistent across the country. For detailed information about FMLA, refer to the “Sick Leave in Colorado => Federal Laws: Leave Quota” section above.
The Pregnancy Discrimination Act (PDA), another federal law, prohibits discrimination based on pregnancy in any employment aspect, including hiring, firing, promotions, and fringe benefits. This law applies to employers with 15 or more employees.
Additional State Laws in Colorado
Colorado leave laws has additional maternity and paternity leave laws, including the Pregnant Workers Fairness Act, which requires employers to provide reasonable accommodations to pregnant employees. These accommodations may include more frequent or longer breaks, light-duty work, job restructuring, equipment modifications, or adjusted work schedules.
The Adoptive Parents Leave law mandates that employers who offer parental leave to biological parents must also extend the same leave to adoptive parents, though this requirement does not apply to step-parent adoptions. The law does not require employers to provide leave initially but ensures that adoptive parents receive equal treatment as biological parents.
The FAMLI program, mentioned above, also provides paid leave for new parents following the birth or adoption of a child. Employees may receive up to 12 weeks of partial pay, with an additional four weeks available for those experiencing pregnancy or childbirth complications.
Payout
FMLA-mandated maternity leave is unpaid, while the FAMLI program is supported by payroll taxes paid equally by employers and employees.
Bereavement Leave in Colorado
There is no federal or state requirement for Colorado employers to provide paid or unpaid bereavement leave. Employers who choose to offer bereavement leave must adhere to the specific policy or practice they have established.
Payout
Bereavement leave is generally unpaid.
Jury Duty Leave in Colorado
Colorado leave laws requires employers to provide paid, job-protected leave to employees serving on a jury. Employers must compensate regular employees up to $50 per day for the first three days of trial or grand jury service unless a higher amount has been agreed upon. From the fourth day onwards, the state pays a $50 per diem to regular employees.
Employees called for jury duty must be excused from work, and part-time or temporary employees who have worked for the same employer for at least three months are considered “regularly employed” and are eligible for jury duty leave. Colorado law also protects employees from job termination, harassment, or any form of retaliation for fulfilling their jury service obligations.
Employees are not entitled to compensation for time spent testifying, responding to subpoenas, or acting as plaintiffs or defendants in court.
Payout
Employers pay for the first three days of jury service. The state covers payment from the fourth day onward.
Military Leave in Colorado
Federal Law
The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that applies to all employers in the U.S. It protects the employment rights of Army and Air National Guard members called to federal service. Under USERRA, employers are prohibited from discriminating against employees who serve in the military. Additionally, for one year after returning from military service, an employee can only be terminated for good cause.
Colorado State Law
In addition to USERRA, Colorado state law provides additional protections for state and U.S. military service members. Employees called to active service are entitled to unlimited unpaid leave and must be reinstated to their previous positions with all the wages, seniority, and benefits they would have accrued if continuously employed.
Colorado leave laws also grants up to 15 days of unpaid leave per year for National Guard or U.S. armed forces members to attend military exercises. These employees have reinstatement rights to their previous positions if they remain qualified for the job.
Public employees in Colorado are eligible for additional benefits, such as paid annual military leave, additional military leave, reinstatement rights, and retention of benefits.
Voting Leave in Colorado
Colorado law provides registered employees with up to two hours of paid leave to vote in any primary or general election. Employees must request this leave at least one day before the election. Employers can choose the hours during which employees can be absent, although employees may request to take this leave at the start or end of their shifts. If an employee’s shift starts at least three hours after the polls open or ends at least three hours before they close, the employer is not required to provide voting leave.
Employers are prohibited from penalizing or dismissing employees for taking voting leave.
Payout
Employers are responsible for paying employees for voting leave.
Colorado State Holidays in 2025
Colorado law does not require private employers to offer holiday leave. Employers in the private sector are not obligated to provide paid or unpaid time off for holidays and may require employees to work on holidays. Additionally, Colorado wage law neither mandates nor prohibits extra pay for holiday work. When employees are compensated for a non-working holiday, those hours do not count toward overtime unless actual work was performed on the holiday.
If private employers choose to provide holiday leave, whether paid or unpaid, they must follow their established company policy or the terms of an employment contract.
Colorado officially recognizes 11 state holidays.
Colorado Leave Laws FAQ
Is vacation leave mandatory in Colorado?
No. Colorado law does not require employers to provide vacation leave. However, if an employer chooses to offer it, they must treat it as earned compensation. This means any unused, accrued vacation must be paid out to the employee when their employment ends.
Can employers enforce “Use-It-or-Lose-It” policies in Colorado?
No. Colorado prohibits “Use-It-or-Lose-It” vacation policies. Employees must be allowed to carry over any unused, accrued vacation time, and employers cannot require them to forfeit it after a specific date.
Do employees receive paid sick leave in Colorado?
Yes. Under the Healthy Families and Workplaces Act (HFWA), all employees in Colorado accrue paid sick leave at a rate of 1 hour for every 30 hours worked, up to 48 hours per year. Unused sick leave can roll over into the next year, up to the same cap.
When can Colorado employees start using accrued sick leave?
Employees begin accruing paid sick leave from their first day of employment and can use it as soon as it is earned. Employers cannot impose any waiting period.
What is the FAMLI program?
The Family and Medical Leave Insurance (FAMLI) program is a state-run initiative that provides eligible Colorado workers with up to 12 weeks of paid leave for qualifying life events. These include serious health conditions, bonding with a new child, or caring for a family member. Funded by payroll taxes, benefits became available in January 2024.
Is maternity or paternity leave paid in Colorado?
Unpaid leave is available through the federal Family and Medical Leave Act (FMLA), which provides up to 12 weeks of job-protected leave. In addition, paid leave may be available through the FAMLI program or specific employer policies.
Are employers required to provide bereavement leave?
No. Colorado law does not require employers to offer bereavement leave. However, if a company chooses to offer it, they must adhere to their established policy or employment agreements.
What are the rules for jury duty leave?
Colorado employers must provide job-protected leave for jury duty and pay regular employees up to $50 per day for the first three days of service. From the fourth day onward, the state provides compensation. Retaliation or termination due to jury duty is prohibited.
How does military leave work in Colorado?
Under both state and federal law, employees called to military service are entitled to unpaid leave and must be reinstated to their previous position upon return. Public employees may also receive additional benefits, including paid military leave.
Do employees get paid time off to vote?
Yes. Colorado law grants up to two hours of paid leave to vote in a primary or general election. This applies only if the employee’s work schedule does not otherwise allow three consecutive hours before or after their shift to vote.
Are employers required to provide holiday leave in Colorado?
No. Private employers are not required to offer holiday leave, paid or unpaid, nor are they obligated to provide additional pay for employees who work on holidays. However, if holiday benefits are provided, employers must comply with their own policies or contractual terms.
Conclusion
Understanding Colorado’s leave laws is vital for both employees and employers. From PTO and sick leave to jury duty and family leave, these regulations ensure fair treatment and clarity in the workplace. By staying informed and adhering to state and federal guidelines, organizations can build a compliant and supportive work environment, while employees can confidently exercise their rights to time off when it matters most.