Colorado PEO Law FAQs
Does Colorado require PEOs to register with the state?
Yes. PEOs (employee leasing companies) must register with the Colorado Department of Labor and Employment (CDLE), Division of Unemployment Insurance. Registration is renewed annually by June 30 with a $500 non-refundable fee (Form UITL-39), and a surety bond, letter of credit, or cash escrow equal to 50% of prior-year UI premiums is required.
What is Colorado's unemployment insurance (SUI) taxable wage base?
Colorado's SUI taxable wage base is $30,600 for 2026, up from $27,200 in 2025. Unrated (new) employers pay approximately 3.05%, made up of a 1.53% base, 0.17% support rate, and 1.35% solvency surcharge; experience-rated employers range from 0.72% to 10.85%.
Is workers' compensation mandatory in Colorado?
Yes. Colorado requires employers to obtain workers' compensation insurance. There is no state fund — coverage is written by private carriers, with Pinnacol Assurance acting as the insurer of last resort.
What is the minimum wage in Colorado?
Colorado's minimum wage is $15.16 per hour for 2026, adjusted annually for inflation.
Does Colorado have paid family leave?
Yes. Colorado's Paid Family and Medical Leave Insurance (FAMLI) program took effect January 1, 2024. The 2026 premium is 0.88% of wages (0.44% employer / 0.44% employee) up to the Social Security wage cap, and employees can take up to 12 weeks of FAMLI leave (plus 4 additional pregnancy weeks and 12 weeks of new neonatal care leave).